JUST OVER €250 million will be allocated to local authorities by the Government to construct and regenerate social housing this year.
The fund, which is shared between the State’s 34 city and county councils, is part of the Department of the Environment’s €390 million capital budget for social housing, which has been cut by almost a quarter from €485 million last year.
All local authorities will see a reduction in their social housing grants but one of the more controversial cuts is likely to be a reduction of almost 50 per cent in the funding Dublin City Council had budgeted for the regeneration of Ballymun.
The council had intended to spend just under €47 million this year on the provision of new social housing in Ballymun to rehouse the tenants of the now mostly demolished 1960s tower blocks. However, the department will only be allocating €25 million for the regeneration project this year.
Minister of State for Housing Jan O’Sullivan said she remained committed to the completion of the Ballymun project.
“I am allocating €25 million to Ballymun this year. This is over 20 per cent more than the amount paid to Ballymun . . . last year. This will ensure that the 215 housing units under construction will be substantially completed this year.
“I will be approving a further 30 units to commence construction this year.” Her department was in regular contact with the city council to ensure that the 2012 work was completed as quickly as possible, she said.
“Ballymun regeneration is now moving into the completion phase. I am absolutely committed to seeing all the housing projects planned for Ballymun completed by end 2014.”
However, she said some infrastructure, such as roads and parks, may not be fully complete by 2014.
Despite getting almost 47 per cent less money to spend this year, Ballymun Regeneration Ltd (BRL)said the Government grant was adequate to meet its needs in 2012.
In addition to providing new housing in Ballymun the council, through BRL, faces additional costs in excess of €10.5 million for the removal of the defective pyrite building material from some 274 new houses and apartments.
The council will initially bear the cost of remediation, but is considering legal action to recoup the money.
It is not clear whether the reduced budget will allow the council to complete the pyrite remediation work this year.
As the State’s largest housing authority, the city council is getting the greatest share of the €251 million fund. It has an allocation of just over €62 million, with some €50 million for regeneration projects including Ballymun.
Limerick City Council has secured the next largest funding tranche, with almost €34 million. The city’s regeneration projects will get €28 million of this.
Cork City will receive just under €17 million, South Dublin County Council has been allocated almost €11.5 million. These are followed by Louth County Council which will receive just over €11 million.
