Mica: €2.7bn enhanced scheme agreed by Ministers

The Cabinet has approved details of a new enhanced grant scheme for homeowners affected by Mica, with counties Clare and Limerick set to be included.

Under the Defective Concrete Blocks Bill 2022, homeowners will be entitled for 100 per cent grants up to a maximum of €420,000.

Last November the Cabinet agreed to finance an enhanced €2.2 billion scheme to rebuild and remediate an estimated 7,500 homes which have been structurally damaged by mica but this has now risen by €500 million because of the extension to other counties, inflation and labour costs.

[ Donegal town dealing with mica: 'If this was in Dublin it would already be fixed'  ]

Mr O’Brien received Government approval for the general scheme of the Bill which will introduce the enhanced grants. In a report released in March, the Society of Chartered Surveyors Ireland (SCSI) said rebuilding thousands of homes affected by mica will likely cost the Government between €149,688 and €421,470 for each house. The rates in the planned legislation are in line with that. There will be a Government guarantee for remediation works other than full demolition and rebuild, which means effectively that home owners can get access to a second grant if needed within 40 years.

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The Department of Housing has also said that there will be a revised application process to help remove financial barriers to entering the scheme. This means the home owner will only be required to submit an initial building condition assessment at a “minimal cost” which will be recoupable once they get entry to the scheme.

The Cabinet also agreed to an independent appeals process for applicants. Homeowners will be able to claim alternative accommodation and storage costs and immediate repair works to a maximum value of €25,000 within the overall grant cap.

The Housing Agency will play a role in which they will take on the financial cost of testing and assessing homes and determining on behalf of the local authorities what remediation option should be applied, and what grant rate should be applied for every house. The scheme will also cover rented properties registered with the Residential Tenancies Board on or before the November 1st 2021.

Minister for Housing Darragh O’Brien said he is “satisfied that the enhanced scheme will represent a significant step forward in having a fit for purpose grant scheme which will help homeowners rebuild their homes and their lives.”

“I have consistently said the State has a moral obligation to assist affected homeowners and that is what we are doing through this enhanced scheme,” he concluded.

Homeowners , who protested outside the Dáil on Tuesday, said the scheme does not go far enough and that because of inflation the maximum grant should be raised from €420,000 to €460,000.

Fianna Fáil TD for Clare Cathal Crowe said the decision to allow his county into the scheme was welcome “but by no means is it the end of the road.”

“The Cabinet sign-off indicates a follow through on a government commitment to provide redress for Clare homeowners but there are further stages ahead, including the preparation of legislation to give effect to redress.

“I know that many homeowners want to see the terms of redress improved and I think it’s important that every effort is made to consult with them to ensure that when the redress applications are live, that the best terms possible are offered.”

The extension of the defective blocks scheme to two new counties comes after a report from an expert group warned that it had come to light that homes in other counties may be impacted.

Mr O’Brien is planning to write to each local authority asking them to provide information about potentially affected units in their county, in a bid to identify both the scale of the problem and also to potentially allow these homeowners access to the scheme.