New bill aims to kickstart €2.5bn apartment remediation scheme

Housing Minister Darragh O'Brien said that the firms responsible for the defects in the apartments 'do have a moral responsibility to contribute'. Picture: Sam Boal/Collins Photos

A remediation scheme bill which will pay all costs related to fire and structural safety is to be brought to Cabinet this week.

The Government agreed to set up a multi-billion euro scheme that will repair Celtic Tiger-era apartments after it was revealed that thousands across the country were not built to standard.

Housing Minister Darragh O'Brien will bring a bill to Cabinet that will also include ⁠provision for retrospective payment of eligible costs already incurred in the remediation of relevant defects in a relevant dwelling.

The draft heads of the Apartment and Duplex Defects Remediation Bill 2024, due to be discussed by ministers on Wednesday, will see 100% of eligible remediation costs, including any spending related to the remediation of fire safety, structural safety, and water ingress defects, covered.

⁠Owners’ management companies will be funded to carry out the eligible remediation works under the bill.

The scheme will also apply to apartments and duplexes owned by local authorities and approved housing bodies.

The bill follows a report commissioned by Mr O'Brien which found up to 100,000 purpose-built apartments and duplexes constructed between 1991 and 2013 may be affected by fire safety, structural safety, or water ingress defects.

The report, published in July 2022, put the average cost of the remediation at approximately €25,000 per apartment or duplex.

However, a Government source said the cost of repairs varies significantly between different developments and the types of apartments/duplexes and will depend on the various types or combinations of defects that may be encountered.

It is now estimated that the scheme will cost between €1.56bn-€2.5bn.

Speaking earlier this year, when he sought Cabinet approval to draft the bill, Mr O'Brien said “lessons have been learned and need to continue to be learned”, in relation to oversight of building standards.

He said the regulations in place at the time were not “sufficient”.

Mr O'Brien said that the firms responsible for the defects in the apartments “do have a moral responsibility to contribute, no question of that”.

“We’ll look at all mechanisms to seek recourse or recompense for the State in relation to the cost that the State is going to bear in relation to this scheme,” he said.

“We would expect some payments to be made this year, depending on when applications are made, I would say more next year as the scheme is fully stood up.”

However, in April the Irish Examiner reported that the remediation scheme had been stalled by a dispute between the Government and local authorities over resources to carry out the work.

Around 130 management companies or individuals have applied under the emergency part of the scheme, but none have been sanctioned for remedial work to begin.

The delay had been due to the failure of local authorities to check whether the work is required immediately, as per the terms of the scheme. It had stalled the legislation to give effect to the full force of the scheme, which is now being brought forward by Mr O'Brien.