Print this PagePart V - Frequently Asked Questions
1. What is Part V and a Part V Agreement?
Part V refers to the provisions relating to Housing Supply in the Planning and Development Act 2000 as amended by 2002 legislation. Part V contains 9 sections (93 – 101) relating to the development of housing strategies and the provision of social and affordable housing.
A Part V agreement refers to the agreement between a developer and the planning authority outlining how the developer will meet their obligations under Part V, i.e. the preferred option for compliance outlined in section 96(3) (a) and (b) in the Act.
2. What is the Housing Strategy?
Each planning authority is required to prepare a Housing Strategy which is an integral part of the County/City development plan. In essence, the Housing Strategy projects demand and supply for housing, and based on this assessment estimates the amount of social and affordable housing required for different areas within the development plan area.
3. Does Part V apply to all developments?
Part V applies to residential developments or a mixed development with residential element. The area must also be zoned for development and the development plan must indicate the percentage of land zoned for residential/mixed use to be reserved for social and affordable housing. Certain developments are exempt from Part V – the main exemptions are the:
- provision of houses by an approved body (under the Housing (Miscellaneous provisions) Act, 1992)
- conversion of an existing building or the reconstruction of a building to create one or more dwellings provided that at least 50% of the external fabric is retained
- carrying out works to an existing house
- development of houses under Part V agreement.
There is no requirement for an exemption certificate in relation to these developments. However, the following exemptions require an exemption certificate (Click for Sample):
- Development is for four houses or less, or
- Housing on land of 0.1 hectares or less.
4. What are the options for complying with Part V?
The legislation outlines the following options for complying with Part V:
- Transfer of land – the default option (for the developer) as underlined by section 96 (3)(g)
- Building and transfer of houses
- Transfer of fully or partially serviced sites
- Transfer of land within the functional area of the planning authority i.e. off-site land transfer
- Building and transfer of houses on land off-site
- Transfer of fully or partially serviced sites (off-site)
- Payment of agreed amount
- A combination of transfer of land under s.96(3)(a) and options under s.96(3)(b)
- A combination of 2 or more of the options under s.96(3)(b).
However, the aggregate monetary value of the property/sum paid should be equivalent to the monetary value of the land that would otherwise have been transferred to the planning authority (i.e. the default option).
5. Where a developer offers land to comply with Part V obligations, can the planning authority insist on other options?
No. Provided the land is on-site and that the portion of the site offered by the developer is capable of being developed by the planning authority so that it can deliver houses up to the percentage provided by the Development Plan.
6. Are there particular aspects that the planning authority must consider before entering a Part V agreement?
Yes. It must consider five factors outlined in the legislation:
- Whether the agreement will contribute to achieving the objectives of the Housing Strategy
- Whether it is the best use of the Authority’s resources to ensure adequate supply of housing and financial implications for its role
- The need to counteract undue segregation in housing
- Whether the agreement is in line with the Development Plan
- The timeframe for supply of housing under the agreement.
7. What is financial compensation and how is it calculated?
This refers to the price to be paid by the planning authority to the developer for houses/site procured under options outlined in section 96(3)(b). When houses or sites are to be transferred to the planning authority, the Part V agreement needs to indicate the price to be paid. It is not necessary on the completion of the houses/units but on the completion of the agreement. The Act indicates that the price should be calculated on the basis of the:
- site cost of the houses or the cost of the sites
- building and attributable development costs and profit on those costs as agreed between the developer and the planning authority.
The Department has issued further guidelines on how this price should be calculated. This is outlined in document 1 of the Resource Pack.
8. What is required of a developer seeking planning permission for a development to which Part V applies?
The developer is required to indicate how they intend to comply with Part V i.e. their preferred option for inclusion in a Part V agreement. There is no obligation on the planning authority and the developer to engage in pre-planning consultation. Nevertheless, experience suggests that meaningful pre-planning discussion can contribute to a mutually acceptable Part V agreement.
9. What is existing land use value?
This is a central concept in calculating the price to be paid by the planning authority for the transfer of houses/sites and land either on-site of off-site. The existing use value is calculated as though any development on the specified land – other than exempted development - is and will be unlawful.
In relation to land purchased before 25 August 1999, the actual price paid or agreed is the basis of the calculation.
10. Are there any special planning conditions required relating to permissions to which Part V applies?
Yes. The planning authority should include a condition requiring the applicant to enter an agreement with the planning authority on how they will comply with Part V under the options outlined in s.96(3)(a) and (b).
11. Are there any particular issues, which must be considered before concluding a Part V agreement (Section 96(3)(h)) by the planning authority?
Yes, it shall consider the:
- proper planning and sustainable development of the area;
- housing strategy and the relevant development plan specific objectives;
- overall coherence of the development; and
- view of the applicant in relation to the impact of the agreement on the
development.
The Department of the Environment, Heritage & Local Government have also produced a brochure outlining the facts on Part V of the Planning and Development Acts 2000-2006. To view a copy of the brochure in pdf (PDF, 387KB) click here.
