Dáil Éireann debate -
Tuesday, 23 May 2000

Vol. 519 No. 5

Written Answers. - Housing Crisis.

Jim Mitchell

Question:

252 Mr. J. Mitchell asked the Minister for the Environment and Local Government if his attention has been drawn to the fact that Dublin Corporation and other local authorities are seeking to meet the housing crisis by purchasing the homes from senior citizens at a discounted price and, in turn, offering them secure and comfortable senior citizen accommodation; if he will agree to amend the differential rent scheme to exclude from assessment proceeds of the sale of the house in these circumstances so as to allay the fears of these people that their rent will be based on the interest of any proceeds they receive; and if he will make a statement on the matter. [14588/00]

Minister of State at the Department of the Environment and Local Government (Mr. Molloy):

I am aware that Dublin Corporation operates a scheme whereby elderly home owners may offer their house for sale to the corporation at a discounted price based on their age. The vendor is then provided with rented senior citizen accommodation. The scheme is operated on a modest scale and I understand that over 200 senior citizens have availed of the scheme since 1988.

The scheme allows senior citizens to move to accommodation better suited to their needs, generally with better access to services. The scheme also provides Dublin Corporation with access to under-occupied family type housing for letting to households on their waiting lists while at the same time meeting the needs of senior citizens for more appropriate accommodation. As the scheme thereby contributes to a better utilisation of the housing stock, I support it.

The determination of the rents of their dwellings, and decisions as to the types of income to be taken into account in the assessment of the rents, are an integral part of the housing management responsibilities of local authorities. Responsibility for setting the terms of differential rents schemes was devolved to local authorities in 1986. Authorities have full discretion in these matters subject to their following certain broad principles, as follows: the rent payable should be related to the income of the tenants and a smaller proportion of income should be required from low income households; allowances should be made for dependent children; a contribution towards rent should be required from subsidiary earners and provision should be made to accept a lower rent in exceptional cases where payment of the normal rent would give rise to hardship.

Authorities should ensure that overall rental income reflects adequately, in so far as is practicable to do so, the management and maintenance costs of the houses under their control having regard to appropriate local factors. Each local authority has responsibility for determining its own differential rent scheme and, accordingly, any amendments of the nature proposed would be a matter for Dublin Corporation to decide.