Dáil Éireann Debate, Wednesday - 4 May 2016
302. Deputy Martin Heydon asked the Minister for the Environment; Community and Local Government if he has considered making provisions to ensure that former council houses that are bought out by tenants could only be re-purchased by the council again, if they are resold rather than going on sale in the open market which could result in sales to investors; and if he will make a statement on the matter. [9027/16]
View answer310. Deputy Michael Healy-Rae asked the Minister for the Environment; Community and Local Government his views on a matter (details supplied) regarding the tenant purchase scheme; and if he will make a statement on the matter. [9044/16]
View answer311. Deputy Michael Healy-Rae asked the Minister for the Environment; Community and Local Government the status of local authority tenants who are affected by radon (details supplied); and if he will make a statement on the matter. [9046/16]
View answer313. Deputy James Lawless asked the Minister for the Environment; Community and Local Government why local authority houses which have adaptations in place to accommodate disabilities cannot be purchased through the tenant purchase scheme; and if he will make a statement on the matter. [9071/16]
View answerI propose to take Questions Nos. 302, 310, 311 and 313 together.
Provision was made in the Housing (Miscellaneous Provisions) Act 2014 for a new incremental tenant purchase scheme for existing local authority houses. Following the necessary preparatory work the new Scheme came into operation on 1 January 2016. The Scheme is open to eligible tenants, including joint tenants, of local authority houses that are available for sale under the Scheme. To be eligible tenants must meet certain conditions including having been in receipt of social housing support for a minimum period of one year and having a minimum reckonable income of €15,000 per annum.
The minimum reckonable income is determined by the relevant housing authority in accordance with the detailed provisions of the Ministerial Direction issued under Sections 24(3) and (4) of the 2014 Act.
Under the terms of the new Scheme the discounts are linked to tenant income and can be 40%, 50% or 60% of the purchase price. On sale of a house under the Scheme, the housing authority will place an incremental purchase charge on the house equivalent to the discount granted to the tenant. Generally, the charge withers away over a period of 20, 25 or 30 years depending on the level of discount received.
Where a tenant purchaser wishes to re-sell the house during the charge period he or she must seek the consent of the housing authority to the resale. In such cases, the housing authority also has the first option to buy back the house. If the tenant purchaser sells the house in the charge period, he or she must pay to the housing authority the current value of the outstanding charge.
The Housing (Sale of Local Authority Houses) Regulations 2015 governing the Scheme provides for a number of specified classes of houses to be excluded from sale. The Regulations do not exclude houses which have been specifically adapted for the needs of people with disabilities or houses which are affected by radon.
Housing authorities may, within the provisions of the Regulations, exclude certain houses which, in the opinion of the authority, should not be sold for reasons such as proper estate management. It is a matter for each housing authority to administer the new Scheme in its operational area in line with the over-arching provisions of the relevant governing legislation.
The new scheme is in the very early stages of implementation and my Department is monitoring its operation in consultation with housing authorities.
