Russell Sq press release

12/08/2005

Archived item. This item is published here for historical reasons. The information below may be out of date.

Statement from South Dublin County Council

on Affordable Housing at Russell Square, Tallaght

The Russell Square Development in Tallaght is a Joint Venture between South Dublin County Council and Kelland Homes.  It comprises 475 housing units of which 100 are affordable units.  These 100 houses are being made available at approximately €150,000 instead of the full market value (at the time) of €235,000.  Construction on the 475 houses commenced in May 2002.

This was the first major housing joint venture within South Dublin County Council.  It would set the standards for future such developments.  The land was owned jointly by the Council and by Kelland Homes Ltd.  This would necessitate complex title requirements and exchanges.

As in all major developments the project plan sets out the various steps but these steps run concurrently rather than consecutively.  This has enabled, even with the perceived delays, the Council to get this housing completed sooner than if the steps were consecutive.  It also enabled people to have certainty in the knowledge that they had a house, at a fixed price, which would have no future title issues.

A number of issues have now been raised in respect to the development and the response of the Council is set out hereunder.

Receipt of Deposits

A total of 69 deposits have been received to-date

The deposit represents 3.3% % of the purchase price of 150,000.  The remainder of the price is funded through a loan from South Dublin County Council.  The amount of loan advance is based on the applicants ability to repay and is, therefore, subject to their earnings.  Where an applicants earnings do not allow the full loan advance to be made available that applicant can reduce the overall loan required by paying an additional sum upfront.  16 people were in this position and have paid additional amounts.

11 purchasers have paid an additional €500
1 purchaser paid an additional €1,000
1 purchaser paid an additional €5,000
1 purchaser paid an additional €10,000 
1 purchaser paid an additional €20,000
1 purchaser paid an additional €33,000

All of these deposits paid over the last 10 month period were receipted into the Council’s current account.  It is reasonable to assume that deposits received to secure affordable units would have been invested.  The average investment rate is 2.14%.  Therefore when an organisation like the Council invests a sum of €20,000 12 months it would yield €400.  Any return on this investment for individual purchasers will be reflected in the final purchase price.

The total amount received in deposits is €416,979 or 4% of the total overall purchase price of the units.  The contract with the builder involves phased payments and thus far the Council has paid over 95% of the purchase price to the developer as agreed.

Title Issues

Issues of title are always complex and Russell Square was particularly so.  South Dublin County Council did not have clear title to the all of the lands included in the disposal to the developer – which was the Council’s share of the joint venture.  There were a number of parcels of land involved.  Vesting orders had to be made and land exchange issues had to be finalised.  Title to portion of the developers land had to be transferred and then registered to the Council.

The preparation and the input required for the booklets of title proved a time consuming exercise in that a number of maps and folios had to be prepared.  This was complicated by the fact that there were seven folios involved.  Certified copies of all of the folios with the relevant plans identified thereon had to be prepared together with a declaration of identity for inclusion in booklet of title.  Some of the units were built on sites part of which were on Council property and part on the property of  Kelland Homes Ltd. Schedules identifying the appropriate folio for each unit were necessary.  Land registry approved scheme maps were required for each unit of housing.

Extensive documentation had to be prepared in order to sell the units including transfer, charging and mortgage documentation.

Completion Issues

A floor area certificate for the Department of Environment was required in respect of each property.

A certificate of indemnity in respect of the taking in charge element of the development had to be submitted.

A complete snagging and final certification of the properties was required from both the consultant architects and the Council architects.

All of these issues have now been resolved.  The Council will be in a position to commence the closings of the properties from next week.  Each of the purchasers who have already submitted their own snag lists will be notified of their closing dates in the next few days and those that still have to submit their own snag lists will be notified of the final timeline in which they must submit this.  The purchase price remained at €150,000 until June 2005 for these purchasers.

The Council appreciates that the wait for these units on those that have purchased them has been difficult.  In such circumstances it was difficult to give definitive dates.   However, it is essential for the purchasers that all issues of title and construction are fully resolved before taking possession of their homes.  These purchasers will move into their homes in the next few weeks.  It is embarking on new ventures and trying new things that makes this possible for those 100 purchasers.  The Council looks forward to providing a further 300 affordable homes in the next 12 months.