Dáil Éireann Debate, Tuesday - 14 June 2016
257. Deputy Mattie McGrath asked the Minister for the Environment, Community and Local Government the number of applications received and approved under the mortgage-to-rent scheme, by county, in each of the years 2013 to 2016 to date, in tabular form; and if he will make a statement on the matter. [15726/16]
View answerThere are currently two Mortgage to Rent (MTR) schemes funded by my Department. A scheme exists whereby a local authority (LA) can acquire ownership of properties with unsustainable local authority mortgages, thus enabling the household to remain in their home as a social housing tenant (LA-Mortgage-to-Rent). The other scheme provides for an Approved Housing Body (AHB) to acquire ownership of a property with an unsustainable private mortgage, which also enables the household to remain in their home as a social housing tenant (AHB-Mortgage-to-Rent). Both schemes assist families with income difficulties whose mortgages are unsustainable, and where there is little or no prospect of a significant change in circumstances in the foreseeable future. Both schemes are part of the overall suite of social housing options and an important part of the mortgage arrears resolution process.
Information in relation to Local Authority Mortgage to Rent (LAMTR) scheme applications during its pilot phase in Dublin City Council and Westmeath County Council in 2013 and following national roll out of the scheme in 2014 is available on my Department’s website – http://www.environ.ie/housing/statistics/house-prices-loans-and-profile-borrowers/local-authority-loan-activity.
Local authorities are responsible for submitting valid LAMTR applications to my Department and all applications received were approved.
To date in 2016, 3 LAMTR cases have been received and approved for Dublin City Council and 1 claim has been received from Kilkenny County Council and is being processed by my Department. The Department’s deadline for receipt of the next tranche of funding claims from local authorities is 31 July 2016.
In relation to activity under the AHB Mortgage to Rent scheme, at the end of April 2016, a total of 162 cases have been completed, 18 are currently with the lenders who are seeking the consent of borrowers to share information and for the carrying out of an independent valuation, and 645 are actively being progressed. The following tables give the breakdown by Local Authority and by AHB.
In total, since the introduction of the scheme in 2012, 3,313 cases had been submitted. There are a variety of reasons why cases have not progressed including the householder’s circumstances improving during the process, no social housing demand in the area, the householder’s income being in excess of the statutory limits for eligibility for social housing, and poor condition of the property. My Department continues to work together with the agencies involved with the scheme, including lenders, to streamline the administrative process and ensure that all potential cases are dealt with speedily and efficiently.
In addition, the package of commitments on mortgage arrears announced by Government in May 2015 included a number of amendments to the Mortgage to Rent scheme, which will enable more properties to qualify, and make it more flexible and accessible to borrowers. Amendments made with effect from July 2015 include raising the valuation thresholds for properties, flexibility in relation to the size of properties, more efficient assessment of a borrower’s eligibility for social housing support and flexibility to allow cases of marginal positive equity to avail of the scheme. Additional financial support has been made available by increasing the ceiling of support under the Capital Advance Leasing Facility (CALF) for MTR cases from 30% to 40%.
Table 2 Number of AHB Mortgage to Rent cases completed by AHB from commencement from commencement of scheme to end April 2016
|
Organisation |
Number of Completed Cases |
|
Carlow County Council |
5 |
|
Cavan County Council |
3 |
|
Clare County Council |
3 |
|
Cork City Council |
6 |
|
Cork County Council |
4 |
|
Donegal County Council |
0 |
|
Dublin City Council |
25 |
|
Dun Laoghaire/Rathdown County Council |
1 |
|
Fingal County Council |
13 |
|
Galway City Council |
1 |
|
Galway County Council |
2 |
|
Kerry County Council |
2 |
|
Kildare County Council |
8 |
|
Kilkenny County Council |
6 |
|
Laois County Council |
3 |
|
Leitrim County Council |
1 |
|
Limerick City and County Council |
6 |
|
Longford County Council |
1 |
|
Louth County Council |
16 |
|
Mayo County Council |
0 |
|
Meath County Council |
15 |
|
Monaghan County Council |
0 |
|
Offaly County Council |
5 |
|
Roscommon County Council |
0 |
|
Sligo County Council |
0 |
|
South Dublin County Council |
11 |
|
Tipperary County Council |
7 |
|
Waterford City and County Council |
10 |
|
Westmeath County Council |
2 |
|
Wexford County Council |
2 |
|
Wicklow County Council |
4 |
|
|
162 |
|
AHB_Name |
Number of completed cases |
|
Clúid Housing Association |
106 |
|
North and East Housing Association |
4 |
|
Oaklee Housing Trust |
36 |
|
Respond! Housing Association |
1 |
|
Tintean |
1 |
|
Túath Housing Association |
14 |
|
|
162 |
