Irish Times – The Kenny Report

In the early 1970s, when Ireland’s economic growth was taking off and the population, after years of decline, was finally growing again, it became clear that our towns and cities would have to expand. Land speculation became the order of the day and whether by accident or design a few landowners made vast fortunes off the backs of the young couples seeking a first home. The government appointed a retired judge who made the common sense proposal that agricultural land, needed for housing, should be acquired by the state or municipality at agricultural price plus a reasonable premium. The report was ‘accepted in principle’ but never implemented. Following on from Dermot Desmond’s thoughtful proposals to solve the housing crisis, I entered the fray as follows:

Sir, – Congratulations to John Daly (Letters, March 11th) for calling out the craven behaviour of our politicians who continue to facilitate windfall profits from land rezoning by not implementing the Kenny report of 1973.

No government has even been willing to test the constitutionality of doing so, still less put the issue to a referendum.

In Sweden, in the 1980s, an equally simple solution was put in place.

Only land that was owned by the municipality could be rezoned and the land could be acquired at a small premium over agricultural value.

This facilitated good planning so that facilities were always in place before the first residents moved in.

It is not that complicated. – Yours, etc,

KEVIN T RYAN,

Castletroy,

Limerick.

Published at https://www.irishtimes.com/opinion/letters/everyone-has-a-right-to-a-home-1.4201409

You can read more about the Kenny Report at https://www.irishtimes.com/opinion/a-report-that-has-gathered-dust-for-47-years-may-hold-the-key-to-housing-crisis-1.4160241

A Retirement Village?

The following is a brief narrative of what has happened and is happening in the Castletroy Retirement Village which I moved to a few years ago. The take home message is that Ireland has little legal protection for long-term tenants and none for retirement villages as such.

In 2005 Planning Permission was granted by Limerick County Council to Fordmount Developments to build ’56 bedroom nursing home, 90 assisted living apartments 49 two bed retirement housing units’. This included the express condition (No. 28) that ‘No amalgamation/subdivision or increase in size of the units shall take place without the prior approval of the Planning Authority’. The application had included the paragraph:

‘1.9 SOCIAL EQUITY

1.9.1. Mixed Housing and Social Integration

The proposed development will provide dwellings for elderly and infirm person of various levels of independence and mobility. The provision of 2 bed retirement houses; 1 and 2 bedroom assisted living units and a nursing home will allow people to remain in the same location and in the same community as their needs change over time. The proposed development, close to existing housing, will allow social integration within the community which will be further promoted by the inclusion of facilities which allow future residents and local people to mingle. ‘

The Castletroy Retirement Village was opened in 2008 and was managed by Neville Furlong. Some units were sold to individuals and other investment group(s) – approximately 19 of the 138 – but around 2010 (??)  Fordmount went into receivership and its loans were acquired by NAMA. From then until August 2019 it was operated under the directions of the receiver. No (?) units were sold during this period but all units were eventually let. Prospective tenants were given a brochure listing the many facilities and services. Such was the demand that there was a waiting list of suitable tenants for both the apartments and the bungalows. Most of those moving to the village were retirees and/or elderly and infirm, many of whom sold their family homes to move here and all of whom were assured that, as it was a retirement village, they would have indefinite tenure. As this is unusual in Ireland, I queried this a number of times and was told that I could stay ‘as long as you like provided you pay the rent’.  A number of units were let to the Brothers of Charity to accommodate, with HSE support, clients requiring sheltered housing.

During this period 2009-19 the Village operated as anticipated and the residents have reported that they were secure and happy with their life here. The services and amenities provided that were especially valued included:

1. The Clubhouse – in Sylan House – which had a full-time co-ordinator who organised social events including exercise sessions, music, arts and craft classes, cookery demonstrations, guest speakers and outings to cinema, restaurants and places of interest. She provided complimentary tea, coffee and scones every weekday morning – a great social meeting point for all. It had a water cooler, art materials, coffee machine and TV & Internet access.
2. The Recreation Room – in Verdant House – was used for weekly Mass and for some of the activities organised by the co-ordinator. It too had a water cooler, art materials and TV & Internet access.
3. An on-site caretaker lived in one of the bungalows and was a security presence. After his untimely death Noonan security mounted regular foot patrols in the evenings and at weekends.
4. The full-time maintenance manager was contactable, by mobile, and could respond immediately to urgent calls.
5. Rubbish was collected from outside residents’ doors on 3 mornings of the week and conveyed to the large, industrial scale bins near the nursing home.
6. Reception in House No 31 was clearly signposted. Outside visitors and residents could contact the Manager and, when required, the nurse during office hours. Deliveries could be left there and urgent maintenance issues raised.
7. There was a post-box for outgoing mail in the lobby of Sylvan and Verdant Houses – saving residents the walk to Castletroy Spar.
8. There was an annual Christmas Party in the nearby Castletroy Park Hotel.

In 2017 NAMA sold the loan to Cerberus – Promontoria (Gem) – what is commonly referred to as a ‘vulture fund’ – for an unknown amount. In August of 2019 the Village was put up for sale by JLL with an asking price of €11m. This advert – for ‘119 retirement properties’ – stated that:

1. 119 units were up for sale (tenants unaffected)
2. Mix of 1 and 2 bed apartments and 20 2-bed houses
3. Rental income of c€1.2m
4. Net operating income of c€0.69m

The recorded[1] sale price was €6,852,903, but this can not be confirmed.  If correct however, it indicates that a net return of approx. 10% could be had by continuing to operate the Village as it had been. The Company Records Office states that the new Directors of Castletroy Retirement Village (Operations) are Edel and Seamus Madden.

Almost immediately the new owners – whose names appeared on none of the notices or correspondence – began cutting services, eliminating amenities and raising rents.

From the list above, these changes took place.

1. The Clubhouse co-ordinator retired and was replaced by a part-time (3 mornings a week) person who had no budget to organise events. The weekly social programme was stopped along with almost all its activities. The water cooler, art materials and coffee machine were successively removed.
2. The Recreation Room also had its water cooler and art equipment removed and its TV & Internet access cancelled.
3. The on-site caretaker had sadly died earlier in the year and was not replaced. The dedicated security person was replaced by brief and infrequent mobile visits by a security van.
4. The full-time maintenance manager was no longer contactable – instead all maintenance requests had to be made by email or phone to the ‘Office’. In the past week he has given in his notice and there is no certainty that he will be replaced.
5. Rubbish must be taken to the industrial scale bins near the nursing home by individual residents. At least one has been injured in attempting to do so. However the resident was afraid to report the incident, saying ‘I’m afraid I might be next’.
6. House No 31 ceased to be ‘Reception’ and instead an internal apartment in Verdant house was designated the ‘Office’. Neither visitors nor delivery persons can easily access this location – assuming they can find it.
7. The post boxes in the lobby of Sylvan and Verdant Houses were removed.
8. There was no annual Christmas Party in 2019.

All these changes were made without consultation, frequently by unheaded and unsigned notices being delivered to each dwelling. For example, one dated 2 December 2019 and addressed to ‘Tenants’ states, regarding rubbish collection, that ‘the practice of leaving refuse outside doors and in corridors/walkways needs to cease. Going forward residents will bring their refuse to the designated areas provided.’  Most shocking of all, at least two elderly residents were given notice to quit – citing the plan to ‘refurbish’ their bungalows.

In response, the residents held meetings and formed an ad hoc ‘Residents Association’ which publicised their plight locally – in the Limerick Leader[2] – and nationally. Sen Kieran O’Donnell raised the issue in the Senate and the Residents Association met with him and TDs Willie O Dea and Jan O Sullivan. All advised meeting with the new owners. The Residents Association requested a meeting, by letter, on 3 December but got no response. The RA then organised a petition seeking such a meeting and had it signed by 77 residents. It was delivered to the owners before Christmas but again it wasn’t even acknowledged. Instead the cuts in services continued.

In response to demands for increased rent, at least five residents have taken cases to the RTB. Some have been heard but, over 4 weeks later, no adjudications have yet been issued. However, the fundamental concern is that the owners do not intend to operate the set of properties as a Retirement Village but are intent on converting (at least some of) the houses to larger dwellings and then selling or letting these at much higher rents. They appear to have discarded any waiting list of retirees and, instead, have let a number of properties to young professionals.  House No 31 has been converted and let as short-term housing for young professionals. Because of political support, Limerick Council issued a warning letter to the owners citing the nature of the development and warning against any re-purposing. But many residents now live in fear and worry. Their distress is palpable and some report that the stress of uncertainty is causing them health problems. Some have already left. Of particular concern are the approx. 12 clients of the Brothers of Charity who have been housed here for almost 10 years. Finding purpose-built, secure and affordable homes for such vulnerable people is never easy and they have been exceptionally content living here. However, now that the initial leases are nearing completion the new owners have refused to renew them.

Some residents, including myself, are seeking legal remedies but, given Ireland’s underdeveloped legislation in this area, are not hopeful that a legal remedy will protect our homes or restore the retirement village to its former happy state. The most promising avenue may be to expose what is happening to public eyes so that prospective tenants, public representatives and the public at large express their displeasure at what is being done and pressure the owners into changing their ways or off-loading the entire property.

Dr. Kevin T Ryan       2 March2020  V4 – 086 2425305 ; kevin.ryan@ul.ie

[1] https://www.propertypriceregister.ie/website/npsra/PPR/npsra-ppr.nsf/eStampUNID/UNID-040C3A09F06D079B8025846900527076?OpenDocument

[2] https://www.limerickleader.ie/news/home/495689/elderly-residents-facing-threat-of-eviction-from-limerick-retirement-village.html

A recent piece in the Irish Times might be of interest https://www.irishtimes.com/news/social-affairs/residents-of-limerick-retirement-village-face-rent-increases-1.4189619?fbclid=IwAR0xV56jhGHZGrgLTfdYRP44FNnlMGB_RIkJtSLOetagwPmKdM8s7WRlYjs