Building on ghost estate progress is slow but ongoing

It may be slow, but action is being taken to address the blight of the Celtic Tiger, writes Jan O Sullivan.

UNFINISHED estates are one of the most visible examples of disaster visited upon families and communities by the collapse of the Celtic Tiger. Homeowners, and entire communities, were left to carry the can when the speculative property merry-go-round shuddered to a halt in 2008.

The article in Monday’s Irish Examiner demonstrated the strain that living on an unfinished estate still causes to families, even if the issue has dropped down the media agenda. The article also revealed that progress has been made on many unfinished estates. This is steady, if slow, progress that I am determined to see continue.

In October 2010, the first national survey revealed that there were more than 2,800 unfinished estates across the country. There were more than 23,000 complete and vacant units on these estates, with about 10,000 units nearly complete, and 10,000 more in the early stages of construction. Remarkably, planning permission was in place for another 58,000 units in these locations.

Since then, a partnership approach between my department, local authorities, the Housing Agency, the construction industry, the financial sector, and Nama has taken action. The number of unfinished estates has reduced by more than 50%, with 1,258 estates now classified as unfinished. Significantly, the number of vacant units has decreased by 72%.

We have also taken swift action to deal with urgent health and safety issues on unfinished estates. Some €4.5m has been advanced for works on 159 developments where serious concerns had to be addressed as a matter of urgency. Nama, which has control of almost 15% of unfinished estates, addressed public safety issues on 29 developments where it had an interest.

This is good progress, but there is still a long road to travel. Of the 1,258 unfinished estates that remain, 992 have people living on them. Resolving these estates is the priority. The majority will be resolved through the agreement of a site resolution plan between the developer/funder, the local authority, and local residents. This often involves scaling back on the original plans for the estate, finishing out the homes that can be sold, and resolving public realm issues such as roads, lighting, and green spaces.

In the absence of engagement from the developer or funder, local authorities are now taking a very active approach to drawing down bonds and securities to fund the completion of public realm works.

This model is working and is the avenue through which more than 50% of developments have been resolved.

All stakeholders acknowledge that some developments are in such a marginal condition that the normal route for resolution isn’t enough. That is why, with the support of Brendan Howlin, the public expenditure and reform minister, I was able to established a €10m fund to assist marginal estates, where there was little prospect of progress in the short to medium term.

In May, 86 estates across the country received funding under the programme, helping with issues such as roads, footpaths, and lighting. In most cases, this public funding has triggered some €12m in third-party investment, focused on completing housing units.

This is an innovative approach that can unlock the future of some of the most marginal estates. It is good for the construction industry, good for local communities, and, most importantly, good for the families living on estates.

We are making progress on this complex problem. I am determined to maintain progress until we remove this scar of the Celtic Tiger.

Jan O’Sullivan is Minister of State, Department of Environment, Community, and Local Government with special responsibility for Housing and Planning