Homeowners face bills of up to €56K despite €2.2bn mica redress scheme

Minister for Housing Darragh O’Brien said it is important that family homes are prioritised and fixed first under the scheme. Photo: Sasko Lazarov / RollingNews.ie

Some Mica homeowners will have to pay between €45,000 and €56,000 to rebuild their homes because of the caps imposed by the Government on its new €2.2 billion redress scheme, the Dáil has heard.

Earlier today, the Cabinet agreed that the mica redress scheme and grants will be capped at €420,000. Homeowners will be able to receive €145 per square foot on the first 1,000 feet of a property.

After that, the rate per square foot drops to €110.

Speaking during Leaders’ Questions, Sinn Féin’s deputy leader Pearse Doherty and Independent TD Thomas Pringle said that, in Donegal, the average size of a Mica-affected house is 2,300 square feet.

“Your sliding scale means that somebody will have to put and find €45,500 themselves to build their house. For those with 2,600 square feet homes, under the sliding scale that your cabinet has signed off on they would have to find €56,000,” he said.

“The families are asking how could this be? Where would I find this money? I thought this was 100% redress,” Mr Doherty said.

Mr Pringle said that in his conversation with the families, Housing Minister Darragh O’Brien made no mention of a flat rate or a sliding scale. “He talked about the price per square metre,” he said.

In response, Taoiseach Micheál Martin said the taxpayer contribution to this scheme will be in excess of €2.2 billion which is “very significant”.

“We need to rebuild these houses but we need to get on and get it done,” the Taoiseach said.

The Taoiseach said we can get this scheme up and running and it is a “very good scheme”.

He said the sliding scale is appropriate as there will be “economies of scale”.

Mr Martin said the government wants to do right by the homeowners.

He said the maximum expenditure cap demolition, demolition and rebuild will be increased from €275,000 to €420,000.

He said social housing will be and also would be remediated at a cost of over €180 million and there are 900 rented properties registered with the RTB.

He also said there's a fixed sum of €20,000 will be allocated to each homeowner for alternative accommodation through rent if they have to leave one's house, and €5,000 for storage costs.

Earlier, Housing Minister Darragh O'Brien said it is important that family homes are prioritised and fixed first under the scheme.

Asked about the cost to the taxpayer, Mr O'Brien said: "The State is making an extraordinary intervention here, there is no question about this."

But he added that "people's homes are crumbling" and there is a "moral obligation" to urgently help those homeowners. 

"I don't want to ever see this happening again," Mr O'Brien said.

The enhanced mica redress scheme will require legislation, which the Minister said will be fast-tracked through the Oireachtas in the first quarter of next year.

A new levy to be introduced on the construction sector will bring in around €80m a year from 2023.

"Our commitment is to establish a building standards regulatory authority on a statutory basis,” Mr O'Brien added.

While 900 rented properties that are registered with the Residential Tenancies Board (RTB) will be included in the scheme, holiday homes will not qualify for the support. Those impacted by mica will also receive up to €5,000 towards the cost of storage while their homes are being remediated.

Mr O'Brien said mental health supports will also be provided.

"A lot of people have been thinking bricks and mortar, but the effect this is having on families and young people's mental health has been absolutely acute," he said.