Developer and council in court over affordable housing dispute

Developer Glenkerrin Homes, which rejects claims that it has failed to meet social and affordable housing requirements, has lost a High Court application for an injunction compelling Dún Laoghaire-Rathdown County Council to give it letters of compliance to complete the sale of some of 149 completed housing units in south Dublin.

The dispute arose after Glenkerrin Homes offered to pay financial contributions instead of providing 15 social housing units at its 450-unit development at Ballintyre Hall, Ballinteer Avenue, Dublin, of which 149 units are complete. It has also offered to provide 15 apartments, as sought by the council, to meet its affordable housing obligations.

It claims the development is "not appropriate" for social housing but the council wants it to provide 15 units and has refused to issue unconditional letters of compliance with financial contributions in the absence of agreement on these obligations.

Glenkerrin last week sought an interlocutory injunction requiring the council to issue the letters.

Mr Justice Frank Clarke yesterday ruled that both sides had raised important issues but he was refusing the order because to grant it would effectively determine the issues in the case. This was not one of those cases where the applicant was bound to succeed, he said. He would facilitate an early hearing of the dispute.

The judge suggested that if the developer and the council could agree terms for the referral of their dispute to either the property arbitrator or An Bord Pleanála, and also agree to accept as binding the findings of either of those bodies, that might provide a means to resolve the dispute and allow the council to issue the letters of compliance.

He was told the matter came before the property arbitrator yesterday but was adjourned until January at the council's request. Senior counsel John Gallagher, for the council, said there was a clear conflict over how the obligations should be interpreted.

There was also an issue over whether the property arbitrator was entitled to proceed when agreement on social and affordable housing was not reached before development commenced.

The judge said the council's policy seemed understandable as it had difficulty acquiring land to build affordable housing. It clearly needed to get land or housing stock to meet its obligations.

He said the council appeared to have decided earlier this year it would no longer issue letters of compliance with financial contributions where there were outstanding issues with a developer, especially on social and affordable housing.

Glenkerrin had established an arguable case as to whether, given established practice, it had an entitlement to such letters. The council had also made an arguable case that it was entitled to change its policy and could not be obliged to supply them.