Could the compulsory purchase of vacant properties be the answer to the housing crisis? (Part 4)
In the last 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:
Under the Land Development Agency Act 2021 (“the LDA Act”), it is envisaged that a Land and Development Agency (“the Agency”) will be incorporated to oversee funding from the Housing Finance Agency to purchase up to 2,500 vacant properties by 2026. It is intended that these would be used as social housing and for onward sale to the Irish homeowner.
The LDA Act allows the Agency to compulsorily acquire land if it is of the opinion that the land is situate in an area which is in need of housing and if the land is necessary to provide access to relevant public land owned by the Agency or to facilitate roads and services serving same. While the initial press release referred to the purchasing of vacant properties around Ireland, the LDA Act does not require the land to be vacant. Rather, the CPO may only be forwarded when it has first made a reasonable attempt to acquire the land by agreement.
The LDA Process
Unlike the process under a local authority, where the Agency wishes to compulsory acquire any land under the LDA Act, the Agency shall apply to the Court for an acquisition order authorising it to acquire the Land via an Acquisition Order.
Notice & Objections
A notice shall be served on any person who appears to the Agency to have a reasonable right to an estate or interest in the property concerned and a notice published in a daily newspaper.
21 days will be granted for the person claiming an interest in the land to lodge an objection with the Court in reply to the Acquisition Order.
Maps, plans and books of reference are to be available for viewing for any party who claims to have a right or interest in the land for at least a 21 day period after the issuing of the notice.
Acquisition Order
In considering the objection raised, the Court will have regard to the nature of the objector’s estate or interest in the Land.
If no objection is raised within the 21 day period, the Court will make the Acquisition Order in favour of the lodging party. The successful Agency shall then give a notice referred to as a “notice to treat” to every owner, lessee, and occupier of the land (excluding tenants of less than a month).
The notice to treat will set out the Agency’s willingness to enter into correspondence for the purchase of several interest in the land and require each owner, lessee and occupier to state within a specified period from the date of receipt of the Notice to Treat to identify the exact nature of the estate or interest in respect of which they are entitled to claim.
Taking Possession
The Agency may enter onto and take possession at any time after the making of the Acquisition Order whether or not the Notice to Treat has been finalised and/or determination of compensation due settled. 14 days’ notice in writing must be provided by the Agency prior to them entering or taking possession.
How might this affect our developers
The enactment of the CPO provisions of the LDA Act raises concerns as to the criteria that may be used for the assessment of CPOs of land of interest to the housing agency. This could raise particular concern where a project is ongoing, and a particular block of city housing is being purchased for eventual redevelopment or rezoning. Unlike the CPO of a derelict house, there are no quick fixes to ensure the matter is reviewed prior to when the CPO completes.
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.
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