Dun Laoghaire-Rathdown County Council has announced it has entered into a deal to lease 87 homes at the cost of €52.5m in an effort to introduce more social housing.
The home are located in the Herbert Hill apartment complex on Sandyford Road, Dundrum and were recently purchased by German-based fund, Realis for €55m.
However, the terms of the deal have made some local representatives question the agreement and its value-for-money.
The local authority will be 100% responsible for the upkeep of the properties for the full-term of the lease which will run for 25 years.
Furthermore, after the expiration of the lease, all residential units will be handed back to Realis for private sale or rent.
Brian Leeson, Eirigi representative for Dundrum says that the deal “represents a scandalous waste of money”.
“The Herbert Hill deal is going to cost at least €35m more than the cost of building 87 homes on public land – homes that would provide secure affordable homes for local families for their full one hundred year life cycle.
“The overall cost of the Herbert Hill deal, which I believe will exceed €60m, could have built up to 300 homes on public land,” he says.
Cllr Jim O’Leary (FG) says he was “shocked councillors were not informed in detail” before the agreement was formally announced.
The deal falls in line with pillar two of Rebuilding Ireland: Action Plan for Housing and Homelessness and Independent councillor Sean McLoughlin says, “Rebuilding Ireland is not working.”
“In this instance, it only covers over the cracks of the housing and homeless crisis in DLR and the wider country. This is the first time DLR is using this mechanism, and hopefully It will be the last.”
Leeson says a family-friendly protest will take place outside Herbert Hill on Saturday next, December 7 from 12pm to 1pm.
The demonstration will “give people the opportunity to register their opposition to the Herbert Hill deal and to DLR, encouraging the vulture takeover of housing in this area,” he says.