Proposal for Land Development Agency will be submitted to Cabinet today for approval

DUBLIN: Housing Minister Darragh O’Brien has confirmed that a memo on the Land Development Agency Bill 2020 will go to Cabinet today for approval. It is expected that today’s proposal would put the LDA on a statutory footing.

The Land Development Agency (LDA) was formed as a State Agency under secondary legislation in September 2018 to build 150,000 new homes over the next 20 years as part of Project Ireland 2040.

In addition to the approval of the text of the LDA Bill, Mr. O’Brien will also seek approval for the priority drafting of the General Scheme of the Affordable Housing Bil.

According to the Government, the objectives of the LDA are: Conducting strategic land assembly to ensure sustainable development of new and regenerated communities provides essential services well; providing homes for affordable purchases; cost rental and social housing; putting in place effective mechanisms; collaborative structures between the public and other bodies to develop public lands and other lands.

Criticism

Critics say the LDA will not solve the affordable housing crisis, as it is currently forming. They claim that the Bill’s concept of “affordable” is too broad, just stating that “affordable” is less than the prevailing market price in the region.

There are also concerns that any LDA affiliates used to build homes will not be subject to Freedom of Information requests or the lobbying register.

Sinn Féin’s Eoin Ó Broin, a long-time opponent of the LDA, says: “The use of private equity finance would also hike up the price of the affordable homes, pushing them beyond the reach of ordinary working people.”

Shared Equity Scheme

The Shared Equity Scheme was also questioned for the potential liability of the taxpayer in the event of a property crash. The scheme would offer loans to help people get on the property ladder. And if the price goes up, people will get back the same percentage value of the home. However, if the house price falls, the taxpayer is liable for the money lost.