Energy performance, together with the overall environmental impact of commercial buildings and real estate generally, continues to be an issue that must be addressed. We have discussed the concept of 'stranded assets' in the Autumn/Winter Tracker 2023. In this Spring Tracker for 2024 we provide a summary of points to address using the Green Lease Toolkit described in more detail in our commentary. In other developments relating to the management of commercial real estate we provide an update on commercial rates legislation and finally a summary on key provisions of the Residential Zoned Land Tax.
SIGNIFICANT COMMERCIAL REAL ESTATE THEMES
ACTS AWAITING COMMENCEMENT
Historic and Archaeological Heritage and Miscellaneous Provisions Act 2023
Date signed into law: 13 October 2023.
This bill will repeal the National Monuments Acts 1930 to 2014 and replace those acts with provisions for the protection of historic and archaeological heritage, in addition to including provisions for the regulation of certain activities in the interests of such protection. It also includes provisions enabling the state to ratify or accede to certain international conventions which relate to such protection or regulation. It will also give effect to the Environmental Impact Assessment Directive (Directive 2011/92/EU on the assessment of the effects of certain public and private projects on the environment as amended by Directive 2014/52/EU) and to the Habitats Directive (Directive 92/43/EC on the conservation of natural habitats and of wild fauna and flora as amended by Council Directive 97/62/EC, Regulation1882/2003, Council Directive 2006/105/EC, and Council Directive 2013/17/EU) in relation to the carrying out of works at, on, in, under, to, or within the immediate surroundings of monuments. It will also give further effect to the Valletta Convention (the European Convention on the Protection of the Archaeological Heritage (Revised)) of 16 January 1992; to consequentially repeal or amend certain other enactments; and to provide for related matters.
Latest stage: Sections 225, 229, 230 and 244-282 have been commenced. The majority of the act is awaiting commencement.
Tailte Éireann Act 2022
Date signed into law: 21 December 2022
This act provides for the establishment of Tailte Éireann, a single body incorporating Ordnance Survey Ireland, the Valuation Office and the Property Registration Authority.
Latest stage: The majority of this Act has been commenced by SI 58/2023, SI 77/2023 and SI 117/2023. The only provisions awaiting commencement are section 5 and Schedule 2 insofar as they relate to the repeal of section 8 of the Ordnance Survey Act 2001, and sections 35(6) and 38(2).
Affordable Housing Act 2021
Date signed into law: 21 July 2021
This act will give effect to the government’s affordable housing policy. The act provides for the establishment of a new affordable shared equity scheme and will define ‘Cost Rental’ as a new form of tenure and place it on a statutory footing.
Commencement: Certain provisions are still awaiting commencement. The Regulation of Providers of Building Works and Miscellaneous Provisions Act 2022 has amended a number of provisions.
Regulation of Providers of Building Works and Miscellaneous Provisions Act 2022
Date signed into law: 5 July 2022
This act provides for the establishment of a register to be known as the Construction Industry Register Ireland (Clár Tionscail Foirgníochta na hÉireann )(“CIRI”) which will regulate providers of building works. The legislation provides for the establishment of a registration body which will determine the standards and competencies required of building work providers, as well as investigating and adjudicating any complaints. The registration body under the legislation will be appointed as the competent authority for the purposes of the European Union (Recognition of Professional Qualifications) Regulations 2017.
Latest stage: The majority of the act has been commenced but a number of provisions are awaiting commencement.
Planning and Development, Maritime and Valuation (Amendment) Act 2022
Date signed into law: 24 July 2022
This legislation amends Part XA of the Planning and Development Act 2000 (the "Principal Act") for the purpose of streamlining substitute consent procedures under the Principal Act. Other amendments to the Principal Act include provisions in relation to the advertisement of short term letting of properties in rent pressure zones; a new requirement that consultations must be undertaken before making applications in relation to certain land and maritime area developments, with respect to details not confirmed at the time of the application; and amendments to s. 34(12) of the Principal Act, allowing planning authorities to refuse to consider an application for retention of an unauthorised development where it decides that an environmental impact assessment or appropriate assessment was required, and amendments to s. 37L of the Principal Act, relating to quarry substitute consent applications, to extend the section to other types of developments.
The legislation also makes a number of changes to the Maritime Area Planning Act 2021 (See Climate, Energy and Natural Resources.)
Latest stage: A number of sections have been commenced. There has been no change to the number of sections commenced since the Autumn Horizon Tracker.
Remediation of Dwellings Damaged by the use of Defective Concrete Blocks Act 2022
Date signed into law: 23 July 2022
The primary purpose of this act is to provide for the payment of grants for the remediation of dwellings damaged by defective concrete blocks. The legislation will also designate local authorities whose areas where affected dwellings are located, as well as providing for the amount of grants for remediation, alternative accommodation, and for storage and immediate repairs that may be paid. Under the legislation the amounts paid may be varied by government order. Further, the act sets out the procedures for applying to a designated local authority for a grant, as well as other related matters including: time limits and conditions attached to grants; conditions for second grants; refund of compensation received by owners of affected dwellings from third parties; recovery of grants; to provide for charging orders for certain grants; and to provide for an Appeals Panel and Appeal Board and related procedures. The act revokes the Dwellings Damaged by the Use of Defective Concrete Blocks in Construction (Remediation) (Financial Assistance) Regulations 2020.
Commencement: Commenced by SI 321/2023 with the exception of section 45(2)(d).
Planning and Development (Large Scale Residential Developments) Act 2021
Date signed into law: 14 December 2021
This act amends and extends the Planning and Development Acts 2000 to 2021 with respect to planning permission applications for certain large-scale residential developments, replacing the Strategic Housing Development arrangements which expired on 25 February 2022.
Commencement: Whole act other than s. 17(6) has been commenced.
Local Government Rates and other Matters Act 2019
Date signed into law: 11 July 2019
This act modernises the law governing commercial rates and enhances the rates collection powers of local authorities. It provides for interest to be applied where rates are unpaid and for the application of minimum charges for vacant commercial premises. Mechanisms are brought in allowing local authorities to introduce targeted rates alleviation schemes.
Commencement: Whole act other than section 21(a) has been commenced. The Local Government Rates and Other Matters Act 2019 (Commencement) Order 2023 commenced a number of provisions effective from 1 January 2024.
IRISH PROPOSED LEGISLATION
Industrial Development (Miscellaneous Provisions) Bill
This bill will amend the Industrial Development Act 1986 to provide for additional scope to allow the IDA provide (i) environmental aid grants, (ii) training aids, and (iii) consultancy grants under certain conditions to ensure long term viability for IDA companies while increasing Ireland attractiveness for FDI. The bill will also delegate legislative power to IDA Ireland to establish a body corporate with a third party for the specific purpose of developing or procuring new industrial or commercial buildings or infrastructure. The Bill also contains minor amendments in respect of Enterprise Ireland’s FOI obligations, three technical enabling amendments to the Dangerous Substances Act 1972 and necessary amendments to the Copyright Act following a CJEU judgment.
Latest stage: Revised Heads in preparation. Listed as "All Other Legislation" in the Spring 2024 Legislative Programme.
Residential Tenancies (Right to Purchase) Bill 2023
This bill will allow tenants in rental properties a first right of refusal to purchase a property when it is put forward for sale. The bill will also make some technical amendments to the Residential Tenancies Act, including amendments allowing hearings in the Residential Tenancies Board to be held in public in accordance with Zalewski v An Adjudication Officer & Ors [2021] IESC 24.
Latest stage: Heads of bill are in preparation. Pre-legislative scrutiny by the Joint Committee on Housing, Local Government and Heritage and the committee's report was published in December 2023. It can be accessed here. Listed for "Priority Publication" in the Spring 2024 Legislative Programme.
Land Value Sharing and Urban Development Zones Bill 2022
This bill will amend the Planning and Development Act 2000 to introduce new provisions to deal with land value sharing and urban development zones reflected in the Government Housing for All Plan.
Latest stage: Pre-legislative scrutiny has taken place and the committee published its report on 26 September 2023. Listed for "Priority Publication" in the Spring 2024 Legislative Programme.
Registration of Short-term Tourist Letting Bill 2022
The purpose of this bill is to amend the Tourist Traffic Acts 1939 – 2016 to make provision for the registration of short-term tourist lettings which arise in circumstances where the quantity and type of accommodation offerings for tourists that are advertised as available in Ireland greatly outnumber those businesses that are registered and known to Fáilte Ireland. Second, when enacted, the Bill will require any party offering accommodation on a short-term basis to tourists to be registered on a register and to hold a valid registration number issued by Fáilte Ireland; and third, the bill creates a system of sanctions so that where the accommodation does not appear on a register and no valid registration number is held, the proprietor and any person who promotes the premises will face prosecution where they provide, advertise, or otherwise offer such unregistered accommodation to tourists for periods of up to 21 nights.
Latest stage: The General Scheme of the bill was published on 8 December 2022. A Joint Committee met in 2023 and discussed the bill with industry representatives. On 22 March 2023, the EU Commission extended the standstill period for the proposed bill until 22 December 2023. Work is ongoing and it is listed for "Priority Drafting" in the Spring 2024 Legislative Programme.
Marine Protected Area Bill 2022
This bill is to provide for the designation and effective management of Marine Protected Areas ("MPAs") in the Irish maritime area.
Latest stage: Pre-Legislative Scrutiny was completed in February 2023. Listed as legislation for "Priority Publication" in the Autumn 2023 Legislative Programme and Spring 2024 Legislative Programme.
Property Services Regulation (Amendment) Bill
This bill will revise the Property Services Regulation Act 2011 in light of the Services Directive 2006/123/EC, the Recognition of Professional Qualifications Directive 2005/36/EC, European Court of Justice case law related to this area, and to the supply of services more generally in the EU.
Latest stage: Listed as "All Other Legislation" in the Autumn 2023 Legislative Programme. Not mentioned in the Spring 2024 Legislative Programme.
Housing (Miscellaneous Provisions) Bill
This bill will amend the existing provisions in the Housing (Miscellaneous Provisions) Act 2009 in respect of social housing assessments, including section 20 of that act on social housing assessments and section 31 of the same act on rent schemes, in addition to amendments to provisions from the Housing (Miscellaneous Provisions) Act 2014 on tenant purchase.
Latest stage: Heads of bill are in preparation. Listed for "Priority Drafting" in the Spring 2024 Legislative Programme.
Fire Services Emergency Management Bill
This bill will consolidate and update the Fire Services Acts 1981 and 2003. It will also underpin current established emergency management practice at national and local level. Also included are provisions to enhance the legislation governing safety at funfairs and the licensing of indoor events.
Latest stage: Work is underway. Listed as "All Other Legislation" in the Spring 2024 Legislative Programme.
BILLS
Planning and Development Bill 2023
This bill is to consolidate and revise the law relating to planning and development; to provide for the licensing of events and control of funfairs; for those purposes to repeal the Planning and Development Act 2000; to amend certain other enactments; and to provide for matters connected therewith.
Latest stage: Committee stage, Dáil Éireann.
Construction Safety Licensing Bill 2023
Date published: 24 March 2023
To provide for the establishment of a statutory licensing system for construction and related activities. including, amongst other aims, the introduction (on a primary legislative basis) of safety awareness requirements for workers in the construction sector; the establishment of a licensing model for workers based on an assessment of competence, to replace the accredited training model and the introduction of skills-based assessment merging the assessment and licensing processes for construction and quarrying activities.
Latest stage: Currently in Dáil Éireann, Fourth Stage.
Tenancy Protection Bill 2023
Date published: 28 March 2023
This bill will amend section 35A of the Residential Tenancies Act 2004 (as amended) so as to protect tenants of multi-unit developments from large-scale evictions.
Latest stage: Currently before Dáil Éireann, Second Stage.
Planning and Development (Amendment) (No. 2) Bill 2021
Date published: 13 May 2021
This bill is to amend the Planning and Development Act 2000 to ensure that every appeal or referral is determined within a period of 12 weeks beginning on the date of receipt by the Board of the appeal or referral, or such other period as the Minster may prescribe.
Latest stage: The bill completed Dáil Éireann, Second Stage on 13 May 2021.
Public Art Mural (Exempted Development) Bill 2023
Date published: 2 February 2023
This bill will amend Planning and Development Regulations, 2001 (S.I. No. 600 of 2001) to provide for exemptions from planning permission for certain categories of public art murals where such work has artistic or cultural merit, has the permission of the owner of the building or structure on which it is displayed, is not a commercial advertisement and does not conflict with the Equal Status Acts.
Latest stage: Currently before Dáil Éireann, Second Stage.
Eviction Ban Bill 2022
Date published: 19 October 2022
This bill will amend the Residential Tenancies Act 2004 to ban evictions for the duration of the current housing emergency.
Latest stage: Completed Dáil Éireann, Second Stage.
Residential Tenancies (Deferment of Termination Dates of Certain Tenancies) (No. 2) Bill 2023
Date published: Awaiting publication
To provide for the deferral of the termination dates of certain tenancies that fall, or would fall, during the period beginning on the day after the date of the passing of this Act and ending on 31 March 2024 in order to mitigate the risk that persons whose tenancies would otherwise be terminated during that period would be unable to obtain alternative accommodation.
Latest Stage: The bill completed Dáil Éireann, Second Stage on 7 December 2021.
EU DRAFT LEGISLATION
Proposed Revision of the Energy Performance of Buildings Directive
Procedure reference: 2021/0426/COD
Date published: 15 December 2021
As part of the Commission Work Programme “Fit for 55” package the Commission has proposed a revision to the EPB Directive to support the EU's 2030 and 2050 decarbonisation objectives. The revised directive will support the key areas of focus identified in the Renovation Wave Strategy including the objective to double the annual energy renovation rate of buildings by 2030 and to foster deep renovations. One of the key features that will be introduced under the proposal are minimum energy performance standards in the sector. These standards will contribute to decreasing energy costs and thereby alleviating energy poverty, as well as increasing the value of more energy performing buildings.
Under the proposal, in order to be classified as a sustainable economic activity under the EU Taxonomy Climate Delegated Act, building renovation will have to either:
- achieve 30% energy savings;
- comply with minimum energy performance requirements for major renovation, or;
- consist of specific individual measures classified as sustainable.
Renovations complying with the proposed minimum energy performance standards will be in compliance with the Taxonomy Climate Delegate Act.
Latest stage: On 8 December 2023, provisional agreement was reached between the Parliament, Council and Commission.
EU LEGISLATION
Directive on energy efficiency (recast)
Procedure reference: 2021/0203/COD
Date published: 14 July 2021
This proposal revises the Energy Efficiency Directive, as well as other existing energy and climate rules, to support the EU's ambition to reduce greenhouse gas emissions by at least 55%, as compared to 1990. At trilogue negotiations the Council and the European Parliament reached a provisional political agreement that Member States must collectively ensure a reduction of final energy consumption of at least 11.7% in 2030, compared with the previous energy consumption forecasts made in 2020. In relation to real estate, the Council and the Parliament have agreed that Member States will be required to renovate at least 3% of the total floor area of buildings owned by public bodies each year.
Latest stage: Enacted on 13 September 2023.