LAST UPDATE | 20 Jul

A DECREASE IN affordable housing for developments in some areas will be proposed to cabinet on Wednesday as part of wider reforms to the Land Development Agency, The Journal understands. 

Minister for Housing James Browne will seek approval from the cabinet on new legislation that requires all developments built on public land to comprise 50% social and affordable housing.

Currently, the affordable housing share is 80% in towns including Dublin and Cork with a population above 150,000, and 50% elsewhere.

The proposal would mean that areas with larger populations would see a lower affordable housing share, with a higher proportion of homes built for private sale.

A government source said that this will result in a “more significant mix” of homes that are available for people to purchase.

As part of the changes, the minister is set to also expand the Compulsory Purchase Order powers of the Land Development Agency (LDA), to enable the delivery of housing and mixed-use developments, and to enable LDA involvement in urban development zones.

The bill also expands the scope of the LDA to allow it to operate in areas with a population of over 10,000. It currently can only operate in areas over 30,000.

With a focus on large-scale developments, under the bill, public lands under half a hectare will not have to be offered for sale to the LDA.

Browne is also moving to give government the power to direct Commercial State Bodies to dispose of land to the LDA.

The bill also seeks to update which lands are considered to be relevant public lands for the purposes of the LDA Act, ensuring that there is consistency across lands which the LDA owns.

In June last year, the remit of the LDA was expanded to enable the agency to increase its acquisition of private land and unlock key, additional, strategic public land sites.

An additional €2.5 billion in funding was approved in November last year.