Could the compulsory purchase of vacant properties be the answer to the housing crisis? (Part 3)

In the third of her 4-part series, Rachel Nangle provides an overview of Derelict Sites, and the use of CPO’s under the Land Development Agency Act 2021. To catch up on the previous related articles, please follow the links below:

Part 1 of this series

Part 2 of this series

What is a Derelict Site?

Where a local authority identifies a site and considers the candidate for inclusion on the derelict site register, it requests that the registered owner submit timelines for any intended development. Local authorities were afforded the power and responsibility for managing same under the Derelict Sites Act 1990 (as amended) (“the Act”).

A derelict site is any land which “detracts, or is likely to detract, to a material degree from the amenity, character or appearance of land in the neighbourhood of the land in question because of

1. the existence on the land in question of structures which are in a ruinous, derelict or dangerous condition, or
2. the neglected, unsightly or objectionable condition of the land or any structures on the land in question, or
3. the presence, deposit or collection on the land in question of any litter, rubbish, debris, or waste, except where the presence, deposit or collection of such litter, rubbish, debris, or waste result from the exercise of a right conferred by statute or by common law.”

Duty of an Owner / Occupier

Under the Act, there is a general duty on the owner and / or occupier to take all such reasonable steps as required to ensure that a land, building or site does not become, or continue to be a derelict site.  Consequently, there arises a duty on local authorities to ensure that the land within their area does not become or continue to be derelict.

The Notice

A notice will:

• Specify the measures which the local authority or the Minister, as the case may be, consider to be necessary in order to prevent the land from becoming or continuing to be a derelict site
• Direct the person on whom the notice is being served to take such measures as may be specified in the notice and
• Specify a period (being not less than one month) within such measures are to be taken

Upon receipt of the notice, the owner and / or occupier has fourteen days from the date of service of the notice in which to make their representations in writing to the local authority.  The local authority can then, having considered the representations, may amend or revoke the notice. Where considered a derelict site, the premises will be listed on the Derelict Sites Register.

Register

Under the Act, it is a requirement that all local authorities must maintain a Derelict Site Register and make it available for public inspection. Local authorities list these registers online.

The Register will include the location, value, name and address of owner and any actions the local authority has taken, together with such other information as required.

Lack of Compliance

Where the person on whom notice has been served does not comply with the specified requirements, the local authority may take such steps (including entry onto the land by an authorised agent) as it considers necessary to give effect to the terms of the notice. The local authority may prosecute the owner and / or occupier for the expense of any works carried out.

A further point of action is to issue a Compulsory Purchase Order (“CPO”) of the derelict site. As part of the plan to tackle the existence of dereliction in areas suffering from housing shortages, the Department of Housing is encouraging local authorities to use CPO powers.

Planning

It should be noted that any works specified in a notice are exempted developments for the purpose of the Planning and Development Acts.

Removal from the Register

Once works have been carried out to the satisfaction of the local authority, they can remove the site from the Register.

If nothing occurs within the timeline previously identified by the local authority, it will issue a notice of intention to include on the Derelict Site Register once more.

Levy

If a property is ultimately put on the Register, it is subject to an annual levy at the rate of 3% of the market value (or such higher percentage as prescribed, with same not to be higher than 10% of the market value of the site) until such time as it is removed from the Register. Where not paid within two months of receiving the notice, and no agreement with the local authority has been reached, interest will be charged on a monthly basis.

It is important to note that the valuation of the property used for the percentage rate will be that as listed on the derelict site’s register. An owner has a right to appeal such valuation within 28 days of notice of same.

How we can help

If you have any queries or concerns, or would like to discuss the above in further detail, please feel free to contact Rachel Nangle in our Commercial Real Estate Department (rnangle@bhsm.ie / +353 (0)1 440 8342).

This article is for general information purposes.  Legal advice must be obtained for individual circumstances.  Whilst every effort has been made to ensure the accuracy of this article, no liability is accepted by the author for any inaccuracies.