Builders pay €73m in lieu of social housing obligation

Local authorities have collected more than €73 million from builders in lieu of social housing, according to the latest figures.

Planning law requires builders to hand over 20 per cent of new developments of more than five homes at a discount to local authorities to provide social and affordable housing. Many councils however have instead availed of an option to accept compensation instead of completed homes or land.

Department of the Environment figures show that between 2003 and the end of June, the State's 34 local authorities had collected €73.5 million from building companies under this scheme.

Local authorities in east Leinster collected the largest sums. Dún Laoghaire/Rathdown got almost €10.86 million, close to €3 million more than the €8 million it had collected by the end of last year.

Kildare County Council's total was €10.82 million, almost €1 million more than the €9.9 million it received by the end of last year.

Meath had collected €5.5 million, considerably up on the €4.7 million at the end of last year. The cash is supposed to be ring-fenced for spending on housing, but by the middle of this year, when the councils had collected more than €60 million, many of them had not spent it.

An estimated 40,000 to 50,000 families are seeking homes from their local councils.

Minister of State for housing Batt O'Keeffe recently told Fine Gael environment spokesman Phil Hogan that he had asked the local authorities to account for the cash they had collected up to the end of 2006. Mr O'Keeffe said he would also ask the councils for a report on the cash they collected this year. Counties around Dublin collected the largest sums as these areas have seen the greatest growth in development and population over the last five years.

Dún Laoghaire/Rathdown said in May it intended offering homes to 250 social housing applicants this year. At that point it had 3,500 applications.

Meath was preparing a plan to spend the money it had collected.

The social housing scheme has often been a source of friction between local authorities, developers and housing rights groups.

Earlier this year, the Irish House Builders Association accused local authorities of reneging on an agreement under which developers sold houses directly to affordable housing applicants nominated by the councils.