Q&A: What does the revised redress scheme mean for homeowners hit by the mica crisis?

A sign from homeowners affected by mica protesting outside the Dáil earlier this year. Picture: Dominic McGrath/PA Wire

How many people will be covered under the revised scheme?

The updated €2.2bn mica redress scheme will cover 7,500 properties, including 1,000 social homes.

The scheme will be extended beyond the original scope, which only included homeowners living in their own properties. 

Rented accommodation that is registered with the Residential Tenancies Board (RTB) will now be able to avail of redress. 

However, this will be subject to the introduction of a clawback mechanism upon re-sale within a set time period, depending on the remediation option used. Opportunities for the State to acquire such rental properties for social housing purposes will also be examined.

Holiday homes will not be included in the scheme.

Will all costs of rebuilding homes be covered?

Housing minister Darragh O'Brien has said the current 90% maximum grant will be increased to a 100% grant.

This will come with a grant cap for where a demolition and rebuild is required. 

However, the maximum payment will be increased to €420,000 — up from €247,500. 

The grant calculation methodology will be based on the cost per square foot (psf) of rebuilding the existing home, with costings to be set by the Department of Housing, Local Government and Heritage, in consultation with the Society of Chartered Surveyors Ireland.

The rate will be set at €145psf for the first 1,000 sq ft, based on SCSI methodology, with a sliding scale thereafter.

The cap will then fall to €110 for the second 1,000 sq ft, and the remainder will be set at a rate of €100psf. 

However, housing minister Darragh O'Brien has said that these rates will be reviewed on an annual basis, and could increase to reflect inflation and rising construction costs.

A revised application process will be introduced which will only require the homeowner to submit an initial ‘building condition assessment’ at minimal cost, recoupable on entry to the scheme.

What about other costs?

Alternative accommodation and storage costs are to be included in the scheme where people have to move out while work is being carried out. This will be subject to a maximum of €20,000. 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.

When will the scheme be fully introduced?

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

Those who are already in the original scheme will come under the revised measures once they come into effect.