Empty property earmarked for homeless costing over €2m a year

An audit of Dublin City Council found that there was a high level of compliance in ensuring the providers of private emergency accommodation had gone through competitive procurement processes.

A property earmarked for homeless accommodation is costing over €2m a year even though no one is being housed there and it won’t be in use until mid-2027, a Government audit has found.

The Local Government Audit Service included the detail in its audit of Dublin City Council, finding that Avalon House in the city centre cost €2.3m in 2024 and €2.5m the year before even though it is unoccupied.

Furthermore, the expected 2027 date hinges on being awarded planning permission for its use by homeless services.

“This property was the subject of a legal settlement, part of which included the transfer of the agreed lease from Peter McVerry Trust to Dublin City Council,” the chief executive of the council told the audit.

“Upon inheriting the lease, DCC assessed all options including terminating the lease, however, none of the options to end the lease were viable and the re-use of the building was then identified as the most appropriate option.” 

Chief executive Richard Shakespeare also told the audit that the Dublin Region Homeless Executive is progressing work to prepare a planning application for the re-use of the building, and it would then require extensive works.

Avalon House on Aungier Street has been unoccupied for several years now, after the plans to convert the former tourist hostel into homeless accommodation were challenged in the High Court. However, it has required planning permission from the outset.

Peter McVerry Trust

Although originally announced as being earmarked for homeless accommodation by the Peter McVerry Trust charity, Dublin City Council took on the lease and has been paying in excess of €2m for several years now on the building which lies idle.

Last week, financial troubles at the charity were laid bare before the Oireachtas Public Accounts Committee. It heard that €350,000 was spent on a driveway at a shelter in Kildare, along with the construction of a new lift shaft and peacock enclosure.

The PAC was told that the installations were made at Kerdiffstown House, near Naas, when the scandal-hit trust was being run by then-CEO Pat Doyle, who used the homeless accommodation as his head office during the covid pandemic.

Competitive procurement

Separately, the audit of Dublin City Council found that there was a high level of compliance in ensuring the providers of private emergency accommodation had gone through competitive procurement processes.

“However, instances of non-compliance have been identified regarding the engagement of 21 providers of private emergency accommodation,” it stated.

“The selection and subsequent appointments of these suppliers were not subject to the performance of a competitive process. The expenditure incurred on these suppliers in the provision of homeless services for the 2024 period was €41.4m.” 

In response, the Dublin City Council chief executive said these were “largely historic arrangements” and every effort is made to secure alternatives.

In some cases, it said it had transferred people from there but had to re-enter it anyway because of an inadequate supply of emergency beds through the open tender procedure.

“If and when we have sufficient alternative arrangements available to us through the open procurement process, we will decant,” he added.