Vacant Above the Shop Grant

Up to €5,000 will be available for owners of commercial properties with vacant above the shop space to seek an Expert Advice Grant in advance of applying for the Vacant Above the Shop Grant.

Engaging the services of a suitably qualified professional will assist in informing owners of the works required, planning, building requirements, statutory regulations etc. to be adhered to for undertaking such projects. There is no obligation on the owner to continue to a make a grant application after receiving the expert advice. 

Further information on the Expert Advice Grant can be found here: www.gov.ie/vacancy

Link to application forms: www.gov.ie/vacancy

Applicants must provide:

• A fully completed signed application form;
• Proof that the above the shop element of the building has been vacant for two years or more;
• Proof that the building was built before 2008;
• Proof of ownership or evidence of active negotiations to purchase the building if seeking approval in principle;
• Property Folio from Land Direct
• Evidence that commercial rates are paid or in order including evidence of rates relief/credit/adjustment due to the building being vacant if applicable;
• Evidence that Local Property Tax is in order where applicable;
• Detailed quotations in respect of the individual costs for each of the works categories being applied for must be provided, as detailed in the table on page 7 of the application form.
• A preliminary design/drawing outlining the proposed residential unit(s) to be created in the building (please note the Expert Advice Grant may be used for this purpose);
• Evidence of planning permission or a certificate of exemption under the Planning Acts;
• Agreement to the clawback conditions (agreement form to be supplied by the local authority);
• A declaration that the commercial element of the building will be retained;
• Applicants who own a building that is a protected structure or traditional building in an Architectural Conservation Area should contact an Architectural Conservation officer at Conservation@corkcity.ie.
• Any other relevant documentation to support your application as requested by the local authority;

In addition:

• Applicants who will use one of the refurbished/converted units as their principal private residence (PPR) will need to submit a signed affidavit confirming that the grant has not been applied for previously for a PPR;
• Applicants who will make the refurbished/converted units available to rent must provide a signed declaration confirming that residential units in the building will be made available for rent with a tenancy/tenancies registered with the RTB.

Further Information

Proof of vacancy

The floors or space above or within the building outside of the commercial element of the building must be vacant for two years or more at the time of grant application. Proof of vacancy is required to support grant applications. Proof of vacancy can include, for example, utility bills, which can help determine vacancy periods (e.g. continuous and consistent low or zero electricity usage or disconnection for a period of two years) or other proofs such as are available. In cases where residential units already exist above the shop, proof can be provided of low electricity usage/disconnection from utility company/payment of commercial rates/rates relief/credit if the building is vacant. If above the shop space has never been used as residential, the owner/applicant will need to provide photographic or other appropriate evidence such as a sworn affidavit to the satisfaction of the local authority of vacancy (the space may have been used for storage purposes). Confirmation of vacancy must be validated and verified by the local authority prior to grant approval. Please note that applicants cannot leave a property unreasonably and purposely vacant for the purpose of qualifying for the grant.

Planning Permission 

The refurbishment/conversion of vacant space for occupation may involve development that requires planning permission. Where appropriate, applicant(s) under the scheme will be required to submit evidence that planning permission has been attained prior to final grant approval. In cases where a question arises in relation to whether a proposed development needs planning permission or is an exempted development, applicant(s) under the scheme will be required to submit a declaration of exemption under Section 5, of the Planning and Development Act, 2000. This question may arise in particular, in the case of a change of use, properties that have been vacant for a long period of time, sub-division of a property and properties that are in a substantial state of disrepair and/or require substantial works.

A local authority may give approval in principle to a grant application where the applicant(s) is required to obtain planning permission for the development/works involved. In these circumstances the applicant(s) shall provide details of their current planning application to accompany their grant application. Any grant approval in principle shall not be confirmed as approval in full until a final decision has issued in respect of the planning application by the planning authority.

If after grant approval has issued you carry out works to your building which have not been included in the grant application, the local authority will need to satisfy themselves that planning permission is/is not required. The applicant may be required to apply for a Section 5 declaration or planning permission as appropriate. This will result in delay to payment of the grant. It is recommended that you contact your local authority if any additional works/demolitions/extensions/sub-division etc. will be undertaken to the building which have not been included in the grant application following a grant approval issuing.

Other regulations to comply with –

The Building Control Regulations 1997 to 2024 require owners, builders, and registered construction professionals to demonstrate through the Statutory Register of Building Control Activity that the works or building concerned have been designed and constructed in compliance with Building Regulations.

The responsibility for compliance with building control regulations lies with each owner, builder. Further information can be found here: https://www.gov.ie/en/department-of-housing-local-government-and-heritage/publications/building-control/

Where appropriate and prior to a grant payment issuing, the local authority will seek evidence by way of a validated Certificate of Compliance on Completion for the works carried out. (A Certificate of Compliance on Completion validated and registered by the Building Control Authority confirms that the building /residential units may be used or occupied).

How many applications for the Vacant Above the Shop Grant can be made by an individual?

There is no restriction on the number of grant applications that can be made by an individual for the Vacant Above the Shop Grant. If an individual owns multiple separate buildings with a commercial element and wants to apply for the Vacant Above the Shop Grant for each of their individual buildings they can do so, where they comply with scheme conditions.

How many Vacant Above the Shop Grant applications can be made per building?

There is only one grant available per building. All owners of the building must apply together on a single application form. Separate grant applications cannot be made for separate floors or floor areas of the same building.

Can someone who previously availed of the Vacant Property Refurbishment Grant now apply for the Vacant Above the Shop Grant? 

Yes, an individual who has availed of or has been approved for the Vacant Property Refurbishment Grant can apply for the Vacant Above the Shop Grant for a separate building that they own which has a commercial element which is being retained, and where vacant floors/space in the building can be refurbished or converted for residential use.

Do I have to live in one of the residential units created in the building as my principal private residence? 

No, it is not a requirement of the Vacant Above the Shop Grant that you live in one of the residential units created, as your principal private residence. The residential units created can be made available for rent or one can be used as your principal private residence. Applicants are required to state on the application form the intended use of the residential units being created. Applicants are required to inform the local authority of any changes in the tenure of units for which works were approved.

What happens if I decide not to keep the commercial element in my building after grant approval / payment? 

The Vacant Above the Shop Grant is only available where the commercial element in the building is retained for a period of 10 years from the date of payment of the grant. You must inform the local authority if the commercial element in the building is not remaining. Where the grant has already been paid, up to €25,000 will become repayable.

Is the grant open to developers / companies / entities who wish to refurbish vacant space in buildings to rent out? 

The grant is not available to registered companies, developers, undertakings etc. The grant is available to individuals (including sole traders) or households for which the property will be their principal private residence or applicant(s) who will make the unit(s) available to rent on the private market. Applications can only be made by named individual(s) who own the building for which the grant is being applied for or who are actively engaged in purchasing the building.

Can I split my building into multiple different folios to avail of more than one Vacant Above the Shop Grant? 

No, only one Vacant Above the Shop Grant (including any top-up amounts) will be available for the building. Splitting of folios in order to avail of more than one grant per building is not permitted.

Can other works commence on the building that are not being claimed for in the grant? 

Yes, as the other works that are being carried out are not related to what is being applied for. This is something that will be checked on the first technical visit by the local authority to your building and the final visit after work has been completed. Only works that have not yet commenced can be applied for under the grant.

What happens when my grant application is approved?

A Letter of Approval will issue to applicants who are successful and will include the approved grant amount. Approval is granted from the date of issue of the letter and is valid for a period of 18 months. All owners identified on the property folio are required to sign and return the letter in order to confirm that they understand the terms and conditions applicable to the grant. 

When can I start the approved works on the qualifying vacant space in the building? 

Works can commence on the vacant space in the building once you have received a Letter of Approval from the local authority.

Is there a time limit from when the application has been approved to when the proposed works are fully completed?

Applicants have a period of 18 months, from the date of the Approval Letter, to complete the approved works on the qualifying vacant space in the building.

What happens if I sell the building or one of the residential units created within the building after payment of the grant? 

It is required that the applicant(s) will live in and/or rent the qualifying residential units for a period of at least 10 years from the date of payment of the grant. If at any time you sell the building or some/all of the residential units created in the building, or it ceases to be your principal private residence after declaring it will be used for same, or the residential units are no longer being rented, within 10 years, you must reimburse the local authority an element of the full value of the Grant, as set out in the scheme outline (www.gov.ie/vacancy). As the charge is placed over the entirety of the building, the local authority will be required to grant a deed of partial release on repayment of the clawback amount.

Do I have to provide annual evidence of RTB Registration? 

Yes, evidence of annual registration of tenancy with the Residential Tenancies Board (RTB) to the satisfaction of the local authority must be submitted to the local authority annually for a period of 10 years after payment of the grant (if the grant application is made in respect of a rental property).

What happens if a rental unit becomes vacant during the 10 year clawback period due to a tenancy being terminated?

In instances where a residential unit becomes vacant due to a tenancy ending due to termination by either party, the clawback conditions will not apply provided the building owner finds a new tenant(s) and registers a new tenancy/tenancies with the RTB in a timely manner. Evidence may be sought by the local authority of efforts to find new tenant/s.

What is a legal charge, and how does it work? 

An agreement (comprising of the signed application form, signed letter of approval and a signed charge document) must be concluded between the local authority and the applicant.

Before payment of the grant to the applicant(s), when the works have been completed and checked by the local authority, a charge document will be signed by the applicant(s). The charge document contains the clawback agreement, including a charge on the property, which shall be binding on the applicant(s) upon drawdown.

The local authority will then place the charge on the applicant’s building. The charge will be equal to the amount of the grant paid. The charge will remain in place for 10 years.

A charge involves no transfer of ownership but confers rights over the building as security. A condition of the Vacant Above the Shop Grant is that the applicant(s) lives in the residential unit or rents out the unit(s) created for a period of at least 10 years following payment of the grant. To secure the local authority’s interest, and to ensure the integrity of the scheme, a charge will be placed against the building as security.

How will the legal charge affect my mortgage?

Where the applicant(s) has a mortgage, the mortgage will always be the first or priority charge on the building. Applicants should discuss the placing of the charge on the building with their lender at the outset of the grant application to ensure they are agreeable to having a second charge placed on the building. It is the applicant’s responsibility to ensure they have the permission of the lender for the placing of the charge.

Do I need to engage the services of a professional in order to sign the charge document? 

Applicants may wish to obtain independent advice from a legal professional in relation to the implications of the charge on their building. As the charge document is legally binding it must be signed by the applicant(s) and witnessed by an independent authorised person.

How will the charge be registered? 

The charge will be registered in Land Direct, Tailte Éireann or the Registry of Deeds (RODs) as appropriate by the local authority, having been signed by the applicant(s), before the drawdown of the grant.

When will my grant be paid? 

The local authority will pay the grant when all required documentation has been submitted and verified by the local authority, as follows:

• Invoices and/or receipts (if only claiming for materials) must be submitted. It is recommended that works/materials relevant to the approved grant are identified and highlighted in order to speed up the checking and verification process.
• Evidence of planning permission.
• Evidence of tenancy/tenancies registered with the Residential Tenancies Board.
• Applicants bank details.
• Evidence of tax clearance for both applicants and contractors.
• The legal charge documents are signed by both the grant applicants and the local authority

The final inspection of the residential unit(s) created in the building has been completed to ensure that the works approved under the grant have been completed.

Why is tax clearance required to be submitted for both me and my contractor(s)? 

This is a Revenue requirement for the payment of grants by public bodies. The responsibility for obtaining and checking tax clearance for contractors engaged to carry out grant approved works lies with the applicant.

It is recommended that applicants in advance of paying a contractor for construction operations undertaken seek the contractor’s tax clearance certificate prior to making payment.

Evidence of the contractor(s) tax clearance will be required by the local authority for all payments issued to contractor(s) of €650 and over prior to issuing a grant payment. If tax clearance has not been sought by the applicant for their contractors or the applicant is unable to produce their own tax clearance this will result in a grant not being paid or a delay in payment.

Further information in relation to this requirement can be obtained here: When is a Tax Clearance Certificate Required?

Appendix 2 of the Department of Finance Circular provides a definition of Construction Operations: Department Circular

Revenue also require tax clearance for grant recipients for any grant payment paid over €10,000.

Can I avail of other grants / incentives for the conversion/refurbishment of vacant space in my building? 

Yes, you can apply for other grants in combination with the Vacant Above the Shop Grant. Works applied for should be separate to those being applied for under the Vacant Above the Shop Grant.  

Applicants must satisfy themselves that proposed works are not claimed for under any other grant meaning that the same works cannot be claimed under separate grants schemes.

An SEAI Home Energy Grant may be available in combination with the Vacant Above the Shop Grant. Works covered by SEAI Better Energy Homes Scheme should be separate to those being applied for under the Vacant Property Refurbishment Grant.  

The Living City Initiative provides tax relief of up to €300,000 for qualifying expenditure incurred on the refurbishment and conversion of both residential and commercial properties located within the Special Regeneration Areas of Cork City. This scheme may be available in conjunction with the Vacant Above the Shop Grant. Applicants availing of other grants will have the amount of the grant paid deducted from the overall eligible costs applicable for tax relief under the LCI.