A new pilot scheme for reimbursing apartment owners who fixed Celtic Tiger era defective properties at their own expense is being established by the Government.
Minister for Housing, Local Government and Heritage, Darragh O’Brien TD, has announced the further development of the Apartment and Duplex Defects Remediation Scheme to address retrospective costs, following recent Cabinet approval to explore the best method of doing so.
The Minister is establishing a Retrospective Costs Pathfinder for the Apartment and Duplex Defects Remediation Scheme to be developed from a representative sample of multi-unit developments which will be determined working in conjunction with stakeholder representatives.
This work is being undertaken in order to identify and develop an appropriate process to address retrospective issues more widely with the objective being to have a process that provides a streamlined approach, ease of engagement by applicants and ensures good governance regarding Exchequer funding.
Two years ago the total cost for repairing the homes was estimated at €1.5 billion to €2.5 billion.
The total number of properties affected is up to 100,000, according to the working group established by the Government.
It found fire safety, structural safety and water ingress issue was likely to affect 50% to 80% of apartments and duplexes built between 1991 and 2013.
The working group found work may have been finished on 12% of properties and 34% may have building under way.
The pilot scheme will ensure the building work is carried out to certain standards.
"Our approach must be grounded in what works best for those affected, and for the taxpayer," Mr O'Brien said of the scheme.
It is expected that the State will have to pay for the vast majority of repairs.
Minister O'Brien said he had not closed the door on taking any legal actions against developers.
But he added: "The statute of limitations has run out many instances."
He said there were also cases "where companies have folded, set back up again and are building again."
He said the industry had paid into the pyrite defects scheme and the construction levy in the past.
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