Fine Gael Led Wicklow Council Move Against HOMEOWNERS for on Unpaid Developer Fees!

Honestly!

http://www.rte.ie/news/2013/0210/367079-wicklow-co-council-move-on-unpaid-development-fees/

Yes, I hear your jaws hitting the floor!

Having bought a house from BM Durkan and been told by Wicklow County Council, I have basically no right in connection to works not completed by him, (some which safety realted including vents for gas), I would go to jail before paying any developer's unpaid fees.

Fine Gael through Phil Hogan have tested our patience massively to date, but this really is mind boggling in terms of insult and gall!

I am totally dumbfounded :mad: :eek:

Mod: Appreciate if you could remove "on" from title. Should be "Fine Gael Led Wicklow Council Move Against HOMEOWNERS for Unpaid Developer Fees!"

Coll1e

You're completely right Honestly. If the council got stung in its dealings with the developer it should review how it collects its development levies not go pursuing already hard hit home owners. I would hate to see anyone even having to contemplate going to jail over this. I hope this works out for you in the end.

Annasopra

Firstly that is outrageous

Secondly - Wicklow County Council is lead by Fine Gael in terms of numbers but the cathaoirleach rotates but it's not clear if this decision was made by the council or manager

Tabnabs

OP, you're solicitor is your very first port of call on this issue and they are the ones you should be directing your ire at initially. It's their job to check these things are in order before YOU sign the paperwork (that's why you pay them all those fees...).

crusher000

Get together and hire a solicitor. I know of a similar case like this (not in Wicklow) and the residence took developers and council to court. Won their case took two years and all the residence staying the course. It is the County Council that have failed here for not persuing the developer at the time of completion of estate. If estate is not complete then they're in even more dodo and you have a stronger case.

Macy0161

It is a disgrace, but is it the elected council or the unelected officials (over which elected members have little control in reality) that is making the move?

I'd also like to point out that people building their own homes had to pay development (and other) levies before they could even start to build - why were developers allowed to be treated differently. If they were treated the same, finished houses with owed development levies wouldn't even arise!

dathi

they are development fees not developer fees they are attached to the house not the developer .yes the developer usually payed them and passed the cost on in the house price. your solicitor should have pointed out at time of purchase that this fee had not been payed and demanded it be payed before closing sale.you will find that if you go to sell now this fee will now flag up as owed on the house and you will have to pay it before sale will go through.

Cerco

From Sunday Business Post, 17/02/13, it seems that the Ombudsman is in agreement with the Council on this one. She (Emily O'Reilly) said that the Council is now obliged to demand payment from the property owners. It appears her opinion is firmly routed in law. (Sorry cannot copy and paste article) Link

I have some sympathy with the solicitors in so far as it was the norm for developers to leave these fees outstanding. Few properties would have been conveyed if the buyers had to wait for the developers to meet all of their commitments

Recall the disastrous social housing legislation of the previous Government where the developers were "obliged" to build a certain number of houses for socially deprived in each and every housing development for which they obtained planning approval. This was watered down to allow developers to pay fees instead to the councils much of is still outstanding. while many of the developers are now insolvent.
I would place the blame on the delinquent councils who continued to give planning approvals to developers who owed vast sums to the same councils. They failed to insist on developer payments up front and then failed to collect payments at all. Now the innocent purchasers are to be levied with a bill.


From Irish Times 11/02/13

Councils may pursue householders for levies unpaid by developers
In this section »


TIM O'BRIEN

Local authorities are examining development schemes to see if almost €300 million in unpaid levies can be passed on to householders.

The move follows the revelation that Wicklow County Council is pursuing homeowners near Avoca for sums of up to €4,800 after the developer failed to pay.

While the move has caused distress to householders, many of whom question the validity of the move, Wicklow County Council has proven successful at recouping outstanding levies.

A recent audit by chief planner Des O’Brien revealed 98 per cent of all levies due in the last 10 years had been paid, leaving an outstanding amount of €2.5million.

Yesterday Mr O’Brien said the council was pursuing householders and developers for the outstanding contributions.

Levies imposed as a condition of planning permission are generally required to be paid before construction work begins, or at least on a phased basis, with a significant up-front payment.

Wicklow council used to inspect each site to ascertain if construction had begun but in recent times had adopted a more cost-effective approach using Google Earth and other searches.

The council’s press agent yesterday issued a statement saying development levies were “a charge on the property itself, not on an individual or a developer”, and there was was “an obligation to pay these contributions”.

The Department of Environment said the question of levies was a matter for the planning authority itself.

But a spokesman noted it did not believe Wicklow was “first off the block in this regard”.

Dublin City Council said its policy was not to pursue householders but it was pursuing developers for outstanding levies.

Other councils including Fingal and Dún Laoghaire-Rathdown said they were unable to be definitive about their approaches to the issue but they were doubtful if the charges were passed on to householders in the event of default by developers.

Cork City Council was owed €9.2 million in development levies as of January 1st, 2012. Fine Gael councillor Jim Corr said the city council, like many others, was watching what was happening in Wicklow “with interest”.

Since the Planning and Development Act 2000, which overhauled development contributions, such funding has become increasingly important to local authorities.

Contributions are mostly levied for use of roads, water and waste services, among others."

Macy0161

dathi wrote: »

they are development fees not developer fees they are attached to the house not the developer .yes the developer usually payed them and passed the cost on in the house price. your solicitor should have pointed out at time of purchase that this fee had not been payed and demanded it be payed before closing sale.you will find that if you go to sell now this fee will now flag up as owed on the house and you will have to pay it before sale will go through.

Development levies were to be paid before construction began though, unless its just another example of the last government and councils treating developers differently to the ordinary Joe? Same as they were allowed fiddle stamp duty on development land (not pay it but pass it on to the home buyer).

pitkan

http://www.thejournal.ie/brook-meadow-avoca-807680-Feb2013/

He added that it is always Wicklow County Council’s policy to pursue developers, “and not to leave house owners with estates that are not fully up to standard, or with debts arising from non-payment of development contributions”.

Is this not contrary to what actually happened in the beginning?

Cerco

I understand Phil Hogan has instructed the Council to retract these demands. (Sunday Business Post today).
Perhaps he is reading Boards.ie.