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Long wait for payment is turning builders off grant scheme

October 17th, 2024 7:30 AM

By Kieran O'Mahony

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BUILDERS are beginning to shy away from a grant scheme in place for vacant and derelict properties because they are waiting too long to receive the payment, according to one councillor.

At a recent meeting of the local authority, Cllr Liam Madden (FF) asked for the figures for the Croí Conaithe scheme and also sought ways that this scheme could be improved.

Figures released showed that a total of €2.238m has been paid out to date, which averages at almost €50,000 each per grant.

However, Cllr Madden noted that the refurbishment scheme has only paid out 45 grants, despite 592 applications being received for the scheme.

‘The alarming figure is here is that 526 applicants are waiting for works to be completed. The grant itself is fantastic but the problem is the administering of the scheme,’ said North Cork-based Cllr Madden.

‘I have two cases in particular, which were approved last February and March, but they are still waiting for a payment. I know there is a legal charge on the property, but I want to know when is this initiated?’

Cllr Madden said there are some huge delays which, in turn, are leading to builders beginning to shy away from this grant because they’re waiting too long for their money.

‘People are taking out loans and getting in financial difficulty due to waiting so long,’ he said.

He also called for the legal aspect of the grants to be speeded up. County mayor Cllr Joe Carroll (FF) said that in some cases the delay is with the applicants’ solicitors.

Cllr Michael Creed (FG) called for more staff to be employed in the Council’s legal department to process the applications as fast as they can.

‘Builders are starting to turn away from these jobs as they are waiting too long for their money. It’s an excellent scheme but the problem is the payment,’ he said.

Cllr Isobel Towse (SD) supported the motion and asked that councillors receive a quarterly progress report on the Croí Conaithe grant for each municipal district so that they are up to speed on the gaps in grant delivery, and where there have been improvements.

‘I welcome that, as of June 2024, West Cork finally has a derelict sites register, the last area of the county to have one.

‘Many derelict property owners in West Cork will soon be given notices to bring these properties back into use, and no doubt will be applying for Croí Conaithe grants. It’s important that the Council is on top of all these processes in order to address the housing crisis in every way we can,’ she said.

A report provided to councillors said a review of all aspects of the scheme is being undertaken by the Department of Housing, Local Government and Heritage, including the possible introduction of stage payments.

The report also stated that grants can only be paid out when works have been completed by the applicant and signed off by the local authority.

Council chief executive Moira Murrell noted there are many phases in the scheme and added that there are old properties with particular sets of complexities and issues.

‘By their nature, some of these take time, but we will look at the stage payment and will keep it under review,’ she said.

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