Dáil Éireann Debate, Tuesday - 24 March 2015
838. Deputy Finian McGrath asked the Minister for the Environment, Community and Local Government his views on correspondence (details supplied) regarding the mortgage to rent scheme; and if he will make a statement on the matter. [11058/15]
View answerUnder the Approved Housing Body (AHB) Mortgage to Rent Scheme (AHB-mortgage-to-rent) an AHB can acquire ownership of a property with an unsustainable private mortgage, enabling the household to remain in their home as a social housing tenant.
To be eligible for the Approved Housing Body (AHB) -mortgage-to-rent scheme a household must have had their mortgage position deemed unsustainable under the Mortgage Arrears Resolution Process, agree to the voluntary surrender of their home, be in negative equity, and be deemed eligible for social housing in accordance with section 20 of the Housing (Miscellaneous Provisions) Act, 2009.
In order for a property to be considered under the AHB-mortgage to rent scheme it must be purchased by an Approved Housing Body for less than €220,000 (per property) in the Greater Dublin Area and €180,000 (per property) in the rest of the country. These limits were determined by a working group which took account of available market data and the current social housing acquisition limits. These limits are considered to be reasonable in respect of the income bracket that is targeted by the scheme.
Under the revised protocol of the AHB-mortgage-to-rent scheme a single independent open market valuation is commissioned by the Housing Agency to determine the value of the property upon which the purchase price is based.
In relation to the specific case raised I understand that further engagement between the household concerned and the lender is required.
