Owners of nearly 16,000 defective apartments yet to receive State funding for emergency fire-safety works

The owners of nearly 16,000 defective apartments have yet to receive State funding for emergency fire-safety works, despite the scheme opening last year.

Minister for Housing Darragh O’Brien opened an interim fund last December that is designed to pay for fire-safety measures to help owners of defective apartments and duplexes. It was opened in advance of a more comprehensive State support scheme that is due before Government shortly.

New information given to Sinn Féin TD Eoin Ó Broin by the Department of Housing reveals that payments have yet to be made, however. The department said there are no delays in funding , but that applicants had not yet completed the final phases of the process before grants could be issued.

Until the end of May, the interim remediation scheme had received a total of 269 applications, representing 15,743 residential units, for fire-safety remediation work. Of these, 154 applications had been validated after they met the required eligibility criteria. Those applications are being progressed across 31 local authority areas.

The scheme is administered by the Housing Agency on a nationwide basis.

Apartment owner management companies (OMCs) can apply through the agency’s website.

In parliamentary correspondence, Mr Ó Broin was told that no companies had drawn funding yet.

The scheme is designed to fund fire alarm upgrades or replacements and make sure escape routes are safe in order to provide an acceptable level of fire safety in buildings, pending completion of the full remedial works. Full works will be funded under a pending statutory scheme.

“There is clearly a lack of urgency from Minister O’Brien on this,” said Mr Ó Broin

“The fund is for emergency fire-safety works. Sixteen months after the fund was announced and six months after it opened not a single cent has been paid out. This is funding for fire alarms, sprinkler systems, fire escapes and fire wardens.

“This was and remains the case with homeowners impacted by defective blocks. Now homeowners and tenants impacted by Celtic Tiger-era fire safety defects are suffering the same fate. Minister O’Brien must get a grip of this fund and run it with the urgency that is required. He must also publish the legislation for the wider Celtic Tiger-era defects scheme as time is running out and for many homeowners, that is time they do not have.”

Apartments and duplexes built between 1991 and 2013 with eligible defects qualify for the interim scheme. A spokesman for the department said the scheme is broken into eight phases but, to date, no OMCs have passed phase three.

In this phase, they must engage a competent professional for the discovery of fire defects who will identify the necessary works. The professional also must complete a fire-safety risk assessment and prepare a works plan, which is subject to engagement with local authority fire services. A builder must also be sought along with a determination of costs.

The spokesman said that once this phase of the process is complete, a grant agreement is issued and funds can be drawn down.

“No applicant OMC has completed phase three yet and progressed to signing a grant agreement. There are no delays in funding being issued.”

The Department of Housing said the general scheme of new legislation for a full defects remediation scheme has been prepared and has been circulated to stakeholders.

“It is intended to submit this to Government in the near future. The scale of defects in apartments and duplexes is significant. The working group to examine defects in housing that reported to Minister O’Brien in July 2022 estimated that between 50 per cent and 80 per cent of apartments and duplexes … constructed between 1991 and 2013 may be affected by one or more fire-safety, structural safety or water ingress defects.”

This equates to between 62,500 and 100,000 apartments or duplexes. The average cost of remediation is approximately €25,000 per unit, which means the full statutory scheme could have a potential cost to the exchequer of between €1.5 billion and €2.5 billion.

“Given the complexity of the issues, including the significant amount of exchequer funding that this Government has committed to assist affected homeowners, sufficient time is required to ensure that the scheme is fit for purpose, provides value for taxpayers money and contains appropriate oversight and governance measures,” the department said in response to queries.