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Thursday, 19 Jan 2017

Written Answers Nos. 134-48

Real Estate Investment Trusts

Questions (134)

Stephen Donnelly

Question:

134. Deputy Stephen S. Donnelly asked the Minister for Housing, Planning, Community and Local Government if his Department has investigated the impact of distressed debt specialists on the housing market; the number of tenants that have been asked to quit their tenancies as a result of requests for vacant sales; and if he will make a statement on the matter. [2401/17]

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Written answers

A lack of additional housing supply coming on stream over the past decade or so in the areas of strongest demand is one of the principal root causes of our current housing crisis. Activity by institutional and professional residential sector investment specialists such as Real Estate Investment Trusts (REITS) in purchasing housing and engaging in the building out of part completed schemes and commencing new housing projects is a positive signal of investment beginning to flow back into the housing sector to provide increased housing supply.

The acquisition and management of properties by REITS is one component part of a more sustainable, long-term property rental market for both investors and tenants. While commercial property investment has been a key focus for some of the REITs launched to date in Ireland, residential property also forms part of the sector's interest and exposure. It is expected that the sector will continue to develop over time and in so doing to increase the supply of professionally managed, good quality, secure and affordable rented accommodation. Investments by REITs that increase the number of dwellings available in the rented sector are a positive development. That said, a diverse sector, which includes both institutional investors specialised in providing and managing larger scale residential rental projects and small scale and individual landlords, is inherently more stable and less exposed to property market risk and volatility.

Historically the private rented sector in Ireland has been largely made up of small-scale landlords, who will continue to provide the bulk of private rented accommodation. Institutional investors can also help provide the range of tenancy options that households need across their lifecycles. Attracting large scale investment in property has an important role to play in helping to deliver the professional high-standard rental sector that tenants deserve.

In cases where buy-to-let mortgages are sold on by the original lender, the rights and responsibilities of the landlord and tenant and the terms of the mortgage are unaffected. However, I am very aware of the scale of the problem of debt distressed landlords. There are more than 25,000 buy to let mortgage accounts in arrears and more than half of these have arrears of over two years. In many cases, when these result in receivership and repossession, the lender does seek to sell the property with vacant possession, although such cases only come to the attention of the Residential Tenancies Board when a dispute arises. Under the Strategy for the Rental Sector, published in December, my Department is establishing a working group with the participation of the Departments of Justice & Equality, Finance, and Jobs, Enterprise & Innovation, to explore the scope for landlord obligations to be transferred to receivers in such cases. The Working Group will report by the end of March this year.

In relation to the numbers of tenants that have been served with notices of termination for the purposes of vacant sales, my Department does not hold or collate the information requested.

Social and Affordable Housing Data

Questions (135)

Ruth Coppinger

Question:

135. Deputy Ruth Coppinger asked the Minister for Housing, Planning, Community and Local Government the number of new local authority homes that were completed by local authorities in 2016; and if he will make a statement on the matter. [2421/17]

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Written answers

Funding is provided to local authorities under my Department’s Social Housing Capital Investment programme, to deliver additional social housing stock through new construction projects and through the acquisition of new and previously owned houses/apartments. There are also a wide range of funding and delivery mechanisms available to local authorities to deliver social housing either directly or in partnership with Approved Housing Bodies. These include the Capital Assistance Scheme and the current-funded programmes, such as Rental Accommodation Scheme, Housing Assistance Payment and various leasing arrangements under the Social Housing Current Expenditure Programme.

Details on the number of properties constructed, purchased and leased by all local authorities, for letting to those on their social housing waiting lists are available on my Department’s website at the following link:

http://www.housing.gov.ie/housing/social-housing/social-and-affordble/overall-social-housing-provision.

Information on quarter four of 2016 is currently being finalised and will be published shortly.

Social and Affordable Housing Provision

Questions (136)

Bernard Durkan

Question:

136. Deputy Bernard J. Durkan asked the Minister for Housing, Planning, Community and Local Government the extent to which adequate and urgent emergency housing will be provided for throughout County Kildare in 2017 in sufficient numbers to meet the demands of those currently in emergency accommodation in Kildare in adjoining counties whose application for rehousing are with Kildare County Council; and if he will make a statement on the matter. [2450/17]

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Written answers

Funding is provided to local authorities under my Department’s Social Housing Capital Investment programme, to deliver additional social housing stock through new construction projects and through the acquisition of new and previously owned houses/apartments to accommodate persons on their housing waiting lists, including those in emergency accommodation.

There are also a wide range of funding and delivery mechanisms available to local authorities to deliver social housing in partnership with Approved Housing Bodies. These include the Capital Assistance Scheme and current-funded programmes, such as the Rental Accommodation Scheme,(RAS) Housing Assistance Payment (HAP) and various leasing arrangements under the Social Housing Current Expenditure Programme (SHCEP). Again properties provided under these programmes can be used to accommodate persons on their housing waiting lists to include those in emergency accommodation in Kildare and in adjoining counties whose application for rehousing are with Kildare County Council.

Arising from the targets that were initially set under the Social Housing Strategy and have been expanded as a result of Rebuilding Ireland, Kildare County Council has made proposals to my Department to construct new social housing developments which have been given funding approval. These are set out in announcements made in May 2015, July 2015 and January 2016 and available on my Department’s website at the following links:

http://www.environ.ie/en/DevelopmentHousing/Housing/News/MainBody,41340,en.htm,

http://www.environ.ie/en/DevelopmentHousing/Housing/News/MainBody,42225,en.htm,

http://www.environ.ie/housing/social-housing/ministers-kelly-coffey-announce-further-1000-social-housing-units.

Subsequent to these announcements, a further 11 additional social housing units have been approved for Kildare County Council and added to their pipeline, including the provision of 8 units of accommodation at the former Dominican Priory Site in Athy costing an estimated €515,000 and the construction of 3 units of accommodation by the approved housing body KARE at Craddockstown, Naas.

A further 155 new social housing units for Kildare County Council are to be delivered through the public private partnership (PPP) model, at Butterstream, Clane (80) and Craddockstown, Naas (75).

During the course of 2016, I also provided over €19 million to Kildare County Council to purchase new and previously owned houses and apartments for use as social housing units. These approaches are delivering early social housing solutions for people on the waiting lists, while their construction programme ramps up.

In addition to capital funded projects, Kildare County Council has been collaborating with a number of AHBs to deliver additional social housing through the CALF (Capital Advance Leasing Facility) scheme. In 2016, there were 41 units delivered under the CALF scheme and a healthy pipeline of future delivery has been established, with approvals in place for the acquisition of a further 115 units across 9 projects. A further 12 units were secured by AHBs under SHCEP long term leasing arrangements and an additional 773 households were supported by HAP at the end of 2016. To November 2016, a total of 67 households were transferred from Rent Supplement to RAS in Kildare County.

In the case of all of these projects, including the continued roll out of HAP, I am keen that they are advanced as soon as possible and I have assured the local authorities that funding is available to fully support their efforts in this regard in 2017 and 2018.

Residential Tenancies Board Data

Questions (137)

Eoin Ó Broin

Question:

137. Deputy Eoin Ó Broin asked the Minister for Housing, Planning, Community and Local Government if his Department has a register of funds and persons that own the requisite levels of properties as to be potentially affected by the recent amendment of section 35A of the Residential Tenancies Act, the so called Tyrrelstown amendment; and the safeguards or deterrents in place to prevent such an entity transferring stock to multiple holding companies, with each one selling off nine units, thereby defeating the objective of the amendment. [2472/17]

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Written answers

In relation to a register of owners who might be affected by the recent amendment of section 35A of the Residential Tenancies Act, my Department does not hold or collate the information requested. Insofar as the information may be available from the Residential Tenancies Board, the Clerk of the Dáil has requested that arrangements be put in place to facilitate the provision of information by State Bodies to members of the Oireachtas. Following the issue of Circular LG (P) 05/16 on 20 September 2016 from my Department, the RTB have set up a dedicated email address for this purpose at OireachtasMembersQueries@rtb.ie.

The Planning and Development (Housing) and Residential Tenancies Act 2016 was signed by the President on 23 December 2016. It gives effect to a number of commitments related to tenant security contained in Rebuilding Ireland, the Government’s Action Plan for Housing and Homelessness, and in the Strategy for the Rental Sector, which was published in December 2016.

The Act includes measures to prevent a future recurrence of situations where large numbers of residents in a single development are simultaneously served with termination notices to facilitate vacant possession and sale of the property. In this regard, the Act provides that, where a landlord proposes to sell 10 or more units in a development at the same time (i.e. classified as being within a 6-month period), the sales will be conditional on the existing tenants remaining in situ, other than in exceptional circumstances. This will prevent large numbers of tenancy terminations occurring at the same time and the consequent difficulty that tenants would have in finding new accommodation. This provision came into effect on 17 January 2017.

The operation of these provisions will be kept under review by my Department.

Seaweed Harvesting Potential

Questions (138)

Brendan Griffin

Question:

138. Deputy Brendan Griffin asked the Minister for Housing, Planning, Community and Local Government the progress his Department has made on a matter (details supplied); if he has an anticipated timeframe for progress in the sector; and if he will make a statement on the matter. [2474/17]

View answer

Written answers

As I advised in the reply to Question No. 169 of 10 November 2016, it is not appropriate for me to comment directly on any particular application which is before my Department for consent under the Foreshore Act.

Officials from my Department did meet the company concerned on 7 November 2016, where they were fully appraised of the current position regarding this issue. My Department also met with the Office of the Attorney General on 16 November to further discuss the legal aspects of this matter. Since that meeting, my Department has been undertaking some further research and analysis and a further final request for legal advice will issue shortly.

Brexit Issues

Questions (139)

Niall Collins

Question:

139. Deputy Niall Collins asked the Minister for Housing, Planning, Community and Local Government the bilateral meetings he has had with his European counterparts outside of Council of Europe meetings since the UK referendum to leave the EU took place, in which the issue of Brexit and the unique challenges faced by the island of Ireland were discussed, including the name of each European government ministerial counterpart, the location and the date of each meeting, in tabular form; and if he will make a statement on the matter. [2517/17]

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Written answers

An extensive programme of engagement with all other EU Governments and the EU institutions, including the Commission’s Brexit Negotiations Task Force, is under way. This engagement is being intensified in 2017.

On 18 November last, I attended the North South Ministerial Council meeting in Armagh where a discussion on the implications of the UK Referendum took place. While to date I have not held any bilateral meetings with my European counterparts, the Taoiseach and Ministers will continue to meet and engage with our EU counterparts over the coming weeks to emphasise Ireland’s concerns and to ensure that they are fully reflected in the EU position once negotiations commence.

This activity is reinforced by extensive engagement at diplomatic and official level. The Government is acutely aware of the potential risks and challenges for the Irish economy and will remain fully engaged on this aspect as the negotiations proceed. An important part of our preparations for the Brexit negotiations is ensuring that our particular concerns are heard and understood across Europe and engagement with our EU partners and with the EU institutions is, therefore, critical.

Of course, Ireland will be part of the EU 27 team and looks forward to working with our fellow Member States in delivering the best possible result for Ireland and for the EU. In line with the agreement at EU level, there have been and will be no negotiations with the UK until Article 50 has been triggered.

Housing Regeneration

Questions (140)

Jan O'Sullivan

Question:

140. Deputy Jan O'Sullivan asked the Minister for Housing, Planning, Community and Local Government if the audit of vacant houses and apartments that was committed to in Rebuilding Ireland has been completed by his Department; the actions being considered in order to ensure that as many as possible can be occupied in the near future; and if he will make a statement on the matter. [2527/17]

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Written answers

Pillar 5 of the Government’s Action Plan for Housing and Homelessness – Rebuilding Ireland is specifically focussed on utilising existing housing stock with a key objective of ensuring that the existing vacant homes throughout the country and across all forms of tenure, in both the public and private sectors, are used to the optimum degree possible. In this regard, Action 5.1 of Rebuilding Ireland commits to developing a National Vacant Housing Re-Use Strategy by the first quarter of 2017, informed by Census 2016 data, to:

- inform the compilation of a register of vacant units across the country,

- identify the number, location and reasons for longer-term vacancies (i.e. over 6 months) in high demand areas, and

- set out a range of actions to bring vacant units back into reuse.

To this end, the Housing Agency, which has lead responsibility for co-ordinating the development of the Strategy, has established a working group, comprising senior representatives from my Department, local authorities and from the Housing Agency itself to inform the Strategy. The Working Group has met five times to date.

As indicated, it is intended to facilitate the development of a national database of vacant houses under the auspices of the National Vacant Housing Re-use Strategy. The database will aim to include

- the number of vacant homes in each local authority area,

- the addresses of the vacant homes,

- the length of vacancy in each case, and

- the reason(s) for vacancy.

Work is progressing on identifying possible sources of data and information to assist in the most efficient means of compiling such a database.

While the development of the Strategy is being progressed, I have already announced a number of new initiatives under Pillar 5 of Rebuilding Ireland aimed at addressing vacancy and facilitating the reuse of vacant houses. A new Repair and Leasing Scheme (RLS) has been developed to assist private property owners and local authorities or Approved Housing Bodies (AHBs) to harness the accommodation potential that exists in certain vacant properties across Ireland. The scheme was launched in Waterford and Carlow in early October 2016, on a pilot basis, and it is my intention that the scheme will be available nationally by April 2017. I have secured €140m for the successful implementation of this scheme over the next five years. It has significant potential and I am hopeful that it can bring at least 3,500 vacant houses back into productive use between now and 2021.

In addition, under a new Buy and Renew initiative, my Department will support local authorities and AHBs in purchasing private housing units in need of remediation, having them refurbished and making them available for social housing use.  An initial capital provision of €25 million is being made available for this initiative in 2017.

Local Authority Housing Funding

Questions (141)

Jan O'Sullivan

Question:

141. Deputy Jan O'Sullivan asked the Minister for Housing, Planning, Community and Local Government the number of approvals that have been given to local authorities under the streamlining process for funding whereby developments of social housing with 15 units or fewer or of under €2 million in cost require only a single funding submission; and if he will make a statement on the matter. [2528/17]

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Written answers

To date, my Department has approved funding for two schemes using the single-stage approval process.

A number of other schemes, that may be advanced using this approach, are currently being discussed between local authorities and my Department, as part of the informal consultation that happens at technical level, in the development of new construction proposals.

Question No. 142 answered with Question No. 121.

Housing Issues

Questions (143)

Jan O'Sullivan

Question:

143. Deputy Jan O'Sullivan asked the Minister for Housing, Planning, Community and Local Government the assurances he can provide to tenants in a property (details supplied) in County Limerick that their termination notices have been withdrawn; the security this gives them for the immediate and medium term future; and if he will make a statement on the matter. [2530/17]

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Written answers

The Planning and Development (Housing) and Residential Tenancies Act 2016 was signed by the President on 23 December 2016. The Planning and Development (Housing) and Residential Tenancies Act 2016 (Commencement of Certain Provisions) Order 2017 commences Part 3 of the Act, insofar as it is not already in operation, other than sections 44, 45, 48 and 49. This Commencement Order takes effect from 17 January 2017. Under Part 3 of the Act, Sections 38 to 40 provide, inter alia, that where a landlord proposes to sell 10 or more units within a single development at the same time (i.e. classified as being within a 6-month period), the sale will be subject to the existing tenants remaining in situ, other than in exceptional circumstances. Where, before the commencement of section 40 of the Act, a valid notice of termination has been served on a tenant on the ground that the landlord wishes to sell his/her property, then that notice takes effect as if section 40 had not commenced.

However, I understand that, in the particular case referred to by the Deputy, the termination notices issued before the commencement of Section 40 have since been withdrawn, in which case the protections under Section 40 of the Act apply to the tenancies in question. If the owner proceeds to sell ten or more of the dwellings at one time this can only be done with the tenants in situ, unless the tenant agrees to voluntarily end the tenancy or the owner can demonstrate that the price obtainable for the property is more than 20% below the market value that could be obtained with vacant possession and that this would be unduly onerous or cause undue hardship to them.

The Residential Tenancies Act 2004 regulates the landlord-tenant relationship in the private rented residential sector and sets out the rights and obligations of landlords and tenants relating to, inter alia, security of tenure and the termination of tenancies. The Residential Tenancies Board (RTB) was established as an independent statutory body under the Act to operate a national tenancy registration system and to resolve disputes between landlords and tenants.

Where a tenancy has lasted more than 6 months and less than 6 years, sections 34 and 35 of the Act now provides that, if the landlord is claiming an exemption from the new protections, they must demonstrate in the termination notice that the conditions for an exemption apply in the case – i.e. that the price obtainable for the property is more than 20% below the market value that could be obtained with vacant possession and that this would be unduly onerous or cause undue hardship to them.

Section 56 of the Residential Tenancies Act provides that where there is an abuse of the termination procedure, a tenant may bring a complaint to the RTB that they have been unjustly deprived of possession of a dwelling by their landlord. On the hearing of the complaint the RTB, it if considers it proper to do so, may make a direction that damages are paid to the tenant, that the tenant be permitted to resume possession of the dwelling, or both.

Notice periods for the termination of a tenancy by the landlord vary depending on the duration of the tenancy but periods of up to 224 days are provided for under the Act. Where there is a dispute regarding the appropriate period of notice to be given in respect of a tenancy or the validity of a notice of termination, the dispute may be referred to the RTB for resolution.

Social and Affordable Housing Provision

Questions (144)

Éamon Ó Cuív

Question:

144. Deputy Éamon Ó Cuív asked the Minister for Housing, Planning, Community and Local Government his plans to reverse the instruction to local authorities not to construct any further one-off local authority houses in the countryside on land provided at a nominal fee by the applicant; and if he will make a statement on the matter. [2531/17]

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Written answers

As housing authorities, local authorities are responsible for the identification of the social housing need in their area and the development of appropriate responses to the need identified. This can include the development of single rural dwellings where identified and prioritised by local authorities.

In responding to housing need, local authorities now have substantial pipelines of new social housing projects, ranging from larger scale developments to smaller scale projects, and I am keen that they advance all of these as soon as possible and have assured them that funding is available to fully support their efforts in this regard.

Question No. 145 answered with Question No. 127.

Free Travel Scheme

Questions (146)

Pearse Doherty

Question:

146. Deputy Pearse Doherty asked the Minister for Social Protection if he will ensure that pass holders and all persons eligible for free travel shall continue to receive free travel entitlement on all Expressway routes both now and into the future and that such entitlement shall be respected by those overseeing the routes, irrespective of route operator; and if he will make a statement on the matter. [2331/17]

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Written answers

The free travel scheme provides free travel for those with eligibility on the main public and private transport services which includes road, rail and ferry services provided by companies such as Bus Átha Cliath, Bus Éireann, Iarnród Éireann, Luas and services provided by over 80 private transport operators. There are currently approximately 873,000 customers with direct eligibility with an annual allocation of €80 million.

I am aware that the free travel pass is a valuable support for older people and people with disabilities, and that it has a significant role in promoting social inclusion and preventing their isolation. I have no plans to make any changes to the free travel scheme at this time and I am committed to its full retention. In order to maintain service at existing levels funding to the free travel scheme was increased by €3 million in budget 2016.

In the case of the operators of expressway routes changing, as outlined above already, almost 80 private transport operators accept the free travel pass and any new private operators can apply to be accepted into the scheme.

I hope this clarifies the matter for the Deputy.

Money Advice and Budgeting Service Data

Questions (147)

Michael McGrath

Question:

147. Deputy Michael McGrath asked the Minister for Social Protection the number of calls received per month for 2015 and 2016 by the Money Advice and Budgeting Service in relation to mortgage and loan arrears; and if he will make a statement on the matter. [2454/17]

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Written answers

The Money Advice and Budgeting Service (MABS), under the aegis of the Citizens Information Board, assists people who are over-indebted and need help and advice in coping with debt problems, in particular those on low incomes or living on social welfare payments. As part of its free services, MABS provides help and advice to those in mortgage arrears.

MABS local services are staffed by experienced Money Advisers who work with clients experiencing difficulties with a wide range of personal debts including personal loans, mortgages, credit card debt, catalogue debts, debts to legal moneylenders, hire purchase and utility debt.

The role of MABS was expanded in 2015 with the establishment of a Dedicated Mortgage Arrears MABS service (DMA MABS) across the MABS network, to help people specifically with home mortgage arrears. There are now 32 specialist DMA advisors working across 27 locations countrywide, assisting borrowers to assess the options available to them and, where required, negotiating with lenders on their behalf. To date over 2,800 people have availed of the DMA MABS service.

MABS Helpline advisers also give advice and support on many money management and debt issues, and can also provide MABS self-help materials.

Over the course of the period in question, January 2015 to December 2016, the MABS Helpline recorded statistics relating to 36,280 calls. Many callers have a range of money or debt concerns.

The number of calls relating to mortgages, and mortgages on family homes, received by the MABS National Helpline, broken down by month for 2015 and 2016 are shown in the table.

I hope this clarifies the matter for the Deputy.

Month

Family Home Mortgages

Other Mortgages

Jan-15

45

4

Feb-15

188

9

Mar-15

290

2

Apr-15

228

6

May-15

221

2

Jun-15

235

7

Jul-15

221

11

Aug-15

226

11

Sep-15

252

6

Oct-15

284

3

Nov-15

256

7

Dec-15

175

2

Jan-16

254

3

Feb-16

325

5

Mar-16

279

7

Apr-16

261

6

May-16

219

7

Jun-16

227

5

Jul-16

197

2

Aug-16

229

7

Sep-16

221

2

Oct-16

313

1

Nov-16

345

5

Dec-16

185

6

Jobseeker's Benefit Payments

Questions (148)

Bernard Durkan

Question:

148. Deputy Bernard J. Durkan asked the Minister for Social Protection when the required financial assistance will be facilitated in the case of a person (details supplied); and if he will make a statement on the matter. [2245/17]

View answer

Written answers

According to the records of the Department, the person concerned has not submitted an application for a jobseeker’s payment. It is open to the person concerned to call to his local Branch Office in Maynooth where a member of staff will be in a position to advise him of his Social Welfare entitlements and assist him make an application.

I hope this clarifies the matter for the Deputy.

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