Councils must grant compliance certs

In an important decision relating to social and affordable housing obligations, the High Court has declared that local authorities are not entitled, without good reason and reasonable public notice, to terminate the practice of granting developers certificates of compliance necessary to complete the sale of housing units.

However, Mr Justice Frank Clarke also ruled there is "no absolute entitlement" by developers to such certificates, even where they had made financial contributions to meet social and affordable housing obligations.

In a dispute over social housing obligations of Glenkerrin Homes at a south Dublin development, the judge ruled that Dún Laoghaire-Rathdown County Council is obliged to give Glenkerrin certificates of compliance relating to its financial contributions under part V of the Planning Act 2000 unless the council believed there was a reasonable risk that a sale resulting from such a certificate meant it could not secure housing units to which it is entitled under part V.

Mr Justice Clarke was giving an outline conclusion on a dispute in which Glenkerrin Homes sought orders requiring the council to issue it with certificate of compliance necessary to complete the sale of houses at a development in south Dublin.

Glenkerrin offered to pay instead of providing 15 social housing units at its development at Ballintyre Hall, Ballinteer. It also offered to provide 15 apartments, as sought by the council, to meet its affordable housing obligations.

Glenkerrin claimed the development was "not appropriate" for social housing. However, the council wanted it to provide the 15 social housing units and refused to issue it with unconditional letters of compliance with financial contributions in the absence of an agreement.

Mr Justice Clarke said it appeared all local authorities had permitted a practice to evolve under which the compliance certificates were regarded as documents of title necessary to complete sales. In those circumstances, there was a legitimate expectation that that practice could not be terminated without reasonable and general public notice, he said.

Those involved in conveyancing should have a reasonable opportunity to consider how conveyancing issues relating to new homes should be dealt with in the absence of certificates of compliance. In this case, Dún Laoghaire-Rathdown council could not terminate the practice of giving the certificates without such notice.

Mr Justice Clarke also said all local authorities had a general obligation to issue certificates of compliance in accordance with the established practice unless there was good reason not to.