Plan for 63 Sligo social homes delayed over costs
The planned scheme at Rathellen, Finisklin was one of six schemes nationwide, comprising 486 social housing units in total that was due to be delivered under a public private partnership.
The 486 units were due to be delivered as part of 'Social Housing Bundle 3 PPP' across four local authority areas.
Dublin City Council is the lead local authority for the social housing bundle which comprises six schemes in total, including three sites in the capital alongside further sites in Kildare, Wicklow and Sligo.
In a letter to the local authorities, the Department of Housing, Local Government and Heritage said it decided not to proceed "due to the overall costs "which are now considered too high".
All six sites within the social housing bundle have full planning permission.
The Department said the units "will now be delivered by way of an alternative procurement and delivery strategy".
The Department is due to begin a review with the National Development Finance Agency on the future Social Housing Public Private Partnership (PPP) bundles.
The Department said it remains committed to delivering the 486 social housing units that PPP Bundle 3 was designed to provide in partnership with the NDFA and the relevant Local Authorities.
Meanwhile, Sligo County Council has told public representatives that its Housing Capital Team is reviewing the options available for an alternative procurement and delivery strategy for the Rathellen site.
Any planned strategy will require the agreement of the Department of Housing, Local Government and Heritage.
'Hugely disappointing'
Cathaoirleach of Sligo County Council Cllr Declan Bree told RTÉ News he feels the situation is hugely disappointing.
Cllr Bree said following the receipt of tenders there was an expectation that construction work on the housing scheme would commence shortly.
He said there are more than 1,660 households on Sligo County Council's housing waiting list and the current housing crisis is causing "huge distress and anxiety".
"In this context the decision not to proceed with the 63 social housing units in Finisklin can only be described as a serious setback.
"Given the failure of the Minister and his Department to deliver this public private partnership deal we now need to see the Minister and the Government provide the necessary funding directly to the County Council so as we can deliver the scheme in a speedy and efficient manner," Cllr Bree said.
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