Social/AffordableHousing: The developer of the Killiney Court hotel in Killiney, Co Dublin, which is now being turned into 46 apartments, has paid Dún Laoghaire-Rathdown County Council €1,257,000 in lieu of building social and affordable housing on the site.

The money, paid over by Rhode Ireland Ltd, will now be used to provide housing elsewhere in the county, according to Labour councillor Carrie Smyth. Apartments in the development are likely to sell for over €1 million, and at one stage, it was understood that the developer would have to transfer up to nine of the units to the council.

Planning permission was granted by An Bord Pleanála for the scenic hotel site, overlooking Killiney Bay in south Co Dublin, in March 2004, following an oral hearing attended by many high profile residents of the area, including Ali Hewson, who lives nearby with her husband Bono.

A condition of the planning permission, granted by the board against the recommendation of its inspector, required the developer to make an agreement with the council to provide social and affordable housing.

According to a council spokeswoman a number of options were considered, including the developer handing over some apartments to provide housing for suitable applicants, providing part of the site to the council, the sale of apartments to the council, or provision of alternative sites elsewhere in the county. Eventually agreement was reached on a financial contribution of €1,275,000.

The council spokeswoman explained the purchase of four social units would not represent value for money having regard to the Department of the Environment's current cost limits of €180,000 for a two-bed apartment. "The Department of the Environment was consulted in relation to the options available to the Council and conveyed their approval to the acceptance of the financial contribution in this instance. In accordance with the terms of the above legislation the financial contribution will be ring-fenced by the council for provision of social/affordable housing in the future," she said, although she was not able to say where in the county the units would be.

Construction work is continuing on the apartments. The original house is being retained while later additions have been demolished to make way for new apartment buildings. Agent Hooke & MacDonald was unable to say when the apartments are expected to go on sale.