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Social Housing Leasing Initiative.

Dáil Éireann Debate, Wednesday - 3 February 2010

Wednesday, 3 February 2010

Questions (270)

Joan Burton

Question:

335 Deputy Joan Burton asked the Minister for the Environment, Heritage and Local Government the rationale and criteria for the long-term leasing scheme for the rental of accommodation from the private sector for persons on the housing list; the number of housing units that have been rented under the scheme since its inception; the number of same that are currently rented; if there is a lower or upper limit on the number of properties a landlord must be in a position to provide in order to avail of this scheme; the justification for such limits; the number of landlords partaking in this scheme; the number of these landlords that let one property, two to five properties, five to ten properties, 11 to 20 properties and 21 or more properties under the scheme; if he will evaluate the success of the scheme to date in achieving its objectives; if rents under this scheme are guaranteed for the duration of the contract at the same rate or if they can be re-negotiated; the extent to which such rents, whether on properties already under the scheme or those new to the scheme, have been re-negotiated downwards in view of changing conditions in the rental market; if he envisages a role for the National Asset Management Agency as a future landlord under this scheme; and if he will make a statement on the matter. [5390/10]

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Written answers

I refer to the reply to Question No. 2 of Thursday, 21 January 2010.

In relation to the rationale for the scheme, the Social Housing Leasing Initiative is designed further to widen the sources of social housing supply and thereby help create a flexible range of delivery mechanisms for local authorities to meet demand. The use of leasing arrangements will also allow for a substantial increase in the number of households who will have their housing needs met over what would otherwise be possible within the more constrained prevailing resource environment. In advancing the scheme, my Department is engaging with NAMA to explore ways in which its aim of securing a return on vacant stock can be aligned with the need to provide accommodation for disadvantaged households.

The achievement of value for money is the primary focus of authorities when negotiating leasing costs and other associated terms and conditions provided for in lease agreements under the initiative. Broad criteria and methodology for choosing properties for leasing purposes are set out in my Department's circulars numbers N3/09, AHS 2009/1 and SHIP 2009/05, copies of which are being made available in the Oireachtas library.

My Department does not hold data on the number of units rented or details on individual landlords. It is proposed, however, to collect data on the number of social housing lettings on a quarterly basis, including those under the leasing initiative, from Quarter one 2010 onwards. There is no national limit as to the number of properties that an individual property owner can submit to the scheme, subject to the general principles of sustainable communities.

Lease payments are guaranteed for the term of the lease in question. In normal circumstances, each lease agreement entered into will be the subject of a rent review. However, there will be cases where, based on the discount on the current market rent obtained, an agreement is made to fix the rent for the full term of the lease. Rent reviews, where provided for, are based on changes to market rents and must be adjustable upwards and downwards.

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