Shanganagh Urban Village Cooperative Housing Development

SHANGANAGH URBAN VILLAGE COOPERATIVE HOUSING DEVELOPMENT CO-SPONSORED PROPOSAL – SEPTEMBER 8TH 2017

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Presentation to Councillor Colleagues

INTRODUCTION & OVERVIEW OF PROPOSAL Copies of the detailed proposal have been circulated to all Councillors.

INTRODUCTION

CONTEXT

DOCUMENT

Co-Sponsoring Group of Councillors

Woodbrook-Shanganagh LAP, 201723

Structure

“Thinking Outside the Box” Innovative Imaginative Realistically sustainable

“Rebuilding Ireland” Council’s Housing Strategies Report on Public & Private Housing

Interpretations Objective Rationale Framework, Funding & Delivery

LIHAF 2

OBJECTIVE OF THE SCHEME TO PROVIDE 540 HOMES SOCIAL RENTAL

AFFORDABLE PRIVATE

RENT TO BUY PRIVATE

200 Social Homes – All Types

200 Affordable Private Homes

140 “Rent to Buy” Private Homes

100 Social Houses / Apartments

Various Types

Various Types

60 Stepdown Homes

2 / 3 Bed Homes

1 / 2 Bed Homes

40 Clustered see Interpretation of the above terms in Section 3 – pages 2-4 of the Document 3

MIXED TENURE DEVELOPMENT see Sections 4 and 5, pages 4-5

SOCIAL RENTAL

AFFORDABLE PRIVATE

RENT TO BUY PRIVATE

To meet the needs of:

To meet the needs of:

To meet the needs of:

Social Housing Applicants

Applicants earning between €45,000 and €95,000

Applicants earning between €45,000 and €95,000

Example, Gardaí, Teachers, Civil Servants and MiddleIncome Earners

Middle-Income Earners without the capacity currently to have the required level of deposit.

Stepdown – Releasing other homes Disability Senior Citizens

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FRAMEWORK, FUNDING & DELIVERY see Sections 6, 7, & 8, pages 5-7

SPECIAL PURPOSE VEHICLE

CAPITAL FUNDING & SOURCES

PLANNING & DEVELOPMENT

A SPV (incorporated body) could be the commissioning agent for the delivery of the required services at each stage of the development from design to sale and occupation.

The details on the sources of funding and the financial elements of the proposal are provided in Sections 11 and 12 of the Proposal Document which has been circulated to all Councillors..

It is envisaged that the design of the scheme, to provide for uniformity and public policy issues, could be assigned by the SPV to a single design team selected through open competition.

The use of the Council’s “in house” resources could also be considered as an option for the development of the scheme.

The construction of the various elements of the scheme could be assigned to a single main contractor selected through open competition in accordance with the public tendering procedures.

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RATIONALE – MEETING THE NEEDS OF OUR COUNTY AND CERTAIN INCOME COHORTS “The position in Dún Laoghaire Rathdown is unique in our Republic”. (see Section 5, page 4)

HOUSING DEMAND

HOUSING SUPPLY

AFFORDABILITY

The demand for affordable homes for purchase is at record levels, however, the supply of such in this County is considerably restricted by a very high average price.

The supply of newly built homes in this County is beginning to increase but from a very base and certainly not at a pace that will ever meet the demand.

The generally accepted affordability rule is that no more than 30% of net income should be spent on rent/mortgage payments.

Individuals and couples in this County with earnings of between €45,000 and €95,000 per annum are excluded from the market.

Privately built new homes in Dún Laoghaire Rathdown are generally in the upper price ranges due to land costs and the desirability of the locations.

First Time Buyers are paying 25% in Dublin City and 26% in Wicklow. The least affordable area for First Time Buyers is Dún Laoghaire Rathdown, where it takes almost 34% of after tax income to pay the mortgage.

Intervention required.

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URBAN VILLAGE DESIGN CONCEPT “Let’s Think “Outside of the Box” to deliver Quality Homes in Vibrant Communities”

RATIONALE

COMMUNITY

SUSTAINABILITY

A unique opportunity to provide homes for applicants on the Council’s housing waiting lists and for individuals and families on modest earnings only is possible with the use of State / Council owned land and the Shanganagh Castle site is ideally suited to a “continental urban village” development.

It is essential that we learn from the mistakes of the past in the design of housing estates in Ireland.

The site at Shanganagh Castle provides this County with an exceptional opportunity to be innovative and to the forefront of design, deliverability and sustainability in the provision of housing.

We need new urban designs concepts that facilitate and promote social cohesiveness and cooperation in the development of a vibrant and sustainable integrated community – “Urban Village”.

A sustainable model can be designed that may well be suitable for replication elsewhere in this County.

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SHANAGANAGH URBAN VILLAGE – OUR PLAN 8

URBAN VILLAGE DESIGN CONCEPTS Bowden Urban Village Project (South Australia)

Urban Village Design Concepts

Breathe - New Urban Village (South Island, New Zealand)

Urban Village Design Concepts

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Potential Density on the Site Indicative of the numbers of homes that can be built on the site.

A more detailed and more acutely ‘Urban Village’ design will be developed in due course.

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The objective is to integrate the ‘Urban Village’ into its environs in a high quality development of 540 homes – Social, Affordable and “Rent to Buy”.

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FUNDING THE SCHEME – THREE CATEGORIES Details contained in the document circulated to all Councillors.

CATEGORY ONE

CATEGORY TWO

CATEGORY THREE

200 Social Homes – All Types

200 Affordable Private Homes

140 “Rent to Buy” Private Homes

100 Social Houses / Apartments

Various Types

Various Types

60 Stepdown Homes

2 / 3 Bed Homes

1 / 2 Bed Homes

40 Clustered

see Section 3, pages 3-4 for Interpretations of the above and other terms 12

CATEGORY ONE SOCIAL

UNIT COST

TOTAL

10 x 1 Bed Homes

€178,000

(€1,780,000)

GOVERNMENT NET of VAT ** (€240,300)

50 x 2 Bed Homes

€236,000

(€11,800,000)

(€1,593,000)

40 x 3 Bed Homes

€247,000

(€9,880,000)

(€1,333,800)

Subtotal A

€23,460,000

€3,167,100

Social Step-down 60 Homes

€187,000

(€11,220,000)

(€1,482,000)

€183,000

(€7,320,000)

(€985,000)

Cluster 40 Apartments Subtotal B Total (200 Homes)

€18,540,000

€2,467,000

€42,000,000

€5,634,100 13

CATEGORY TWO AFFORDABLE PURCHASE

UNIT COST

TOTAL

GOVERNMENT NET of VAT **

2/3 Bed Homes x 200

€247,000

€49,400,000

€6,669,000

RENT TO BUY

UNIT COST

TOTAL

GOVERNMENT NET of VAT **

1/2 Bed Homes x 140

€220,000

€30,800,000

€2,279,200

CATEGORY THREE

CATEGORIES TWO & THREE Total (340 Homes)

€80,200,000

€8,948,200 14

TOTAL PROJECTED COSTS CATEGORY ONE

Social Homes

TOTAL

Total (200 Homes)

GOVERNMENT NET of VAT ** €42,000,000

CATEGORIES TWO Affordable & ‘Rent to Buy” Homes & THREE

GOVERNMENT NET of VAT **

TOTAL

Total (340 Homes)

€80,200,000

TOTAL NO. OF HOMES

TOTAL COST

540

€122,200,000

€5,634,100

€8,948,200

TOTAL GOVERNMENT NET of VAT ** €14,582,300

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PROJECTED INCOME It is proposed that a Capital Loan be acquired through a Local Authority Housing Finance application made to Department of Housing, Planning, Community & Local Government, of which, • €80,200,000 will be recoverable and repaid within a proposed forty-month timeframe through a mixture of the Affordable Purchase and “Rent to Buy” Schemes.

• Applicants for Affordable Purchase (Category Two) will be required to pay a set deposit and have finance in place to qualify and secure tenure.

• Applicants for “Rent to Buy” (Category Three) will be required to pay a set rent for a specified period of 36 months.

• 80% of the rent paid by the applicant under the “Rent to Buy” (Category Three) scheme would accrue towards their future deposit and finance (mortgage) application which would be required to be in place within 30-36 months of the date of the applicant taking up residency to guarantee secure tenure and future ownership.

• The balance of €42,000,000 (Category One) will be recoverable through the existing financing of social housing schemes from the Department of Housing, Planning, Community and Local Government in 16 conjunction with the Council’s Capital Expenditure Programme.

PROGRESSION OF THE SCHEME FOLLOWING APPROVAL BY THE COUNCIL

ESTABLISHMENT OF THE SCHEME The Council Executive to prepare a detailed plan for the “Establishment of the Scheme” in accordance with the County Development Plan, 2016-2022, the Woodbrook-Shanganagh Local Area Plan, 2017-2023, the Council’s Housing Strategy and the Government’s Rebuilding Ireland strategies.

“FAST TRACKED” PLANNING PROCESS A more detailed design and implementation scheme could be advanced by a SPV in accordance with the planning process required for such a scheme.

The scheme could be “fast-tracked” in accordance with the Planning and Development (Housing) and Residential Tenancies Act, 2016, by January 2018.

PUBLIC OFFER LAUNCHED With the designing of the scheme advancing and the planning application in preparation for submission by early 2018, it is envisaged that “expressions of interest” from potential applicants could be sought by public advertisement by end of Q1.2018.

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TO RECAP – OUR PLAN IS AS FOLLOWS:

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“

The co-sponsors of the Shanganagh Urban Village Cooperative Housing Scheme commend this innovative, imaginative and realistically sustainable model for the delivery of social and affordable homes to the chief executive of Dún Laoghaire Rathdown County Council, Ms. Philomena Poole, and in doing so, seek to place our county to the forefront of housing provision in Ireland.

”

September 8th 2017 The list of the “Co-Sponsoring Councillors” is provided in Section 10 of the Written Proposal – page 7 It is anticipated that further support will be forthcoming at the Council Meeting on Monday September 11th 2017

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Go Raibh Míle Maith Agaibh Questions 20