Dáil Éireann Debate, Tuesday - 23 June 2020
896. Deputy Frankie Feighan asked the Minister for Housing, Planning and Local Government the status of the mortgage to rent scheme (details supplied) as administered by Sligo County Council; and if he will make a statement on the matter. [12268/20]
View answerThe Mortgage to Rent (MTR) scheme relies on Approved Housing Bodies (AHBs) to purchase from lenders, properties that have been voluntarily surrendered by eligible borrowers. AHBs are funding the cost of purchasing these properties from a combination of low interest borrowings under the Capital Advance Leasing Facility (CALF) administered by my Department, and private finance or other borrowings. Essentially, the CALF facility works by providing AHBs with a small capital advance in the form of a loan, that is made available by my Department through local authorities to AHBs. The capital advance assists AHBs in securing the balance of the finance required to purchase MTR properties thereby enabling the households to remain in their homes as social housing tenants.
The Capital Advance Agreement is the agreement between the local authority and the AHB detailing the terms and conditions of the monies to be advanced under CALF. Evidentiary proof is required in order to facilitate the advancement of funds under the Capital Advance Agreement. To date, local authorities, under their own legal advice, have facilitated this provision and the timing of the provision of such documentation is agreed between the local authorities and the AHB. The local authorities take a measured financial and legal decision around advancing the funds, in the knowledge that the Capital Advance Agreement allows the recall of funding if the required documentation does not fulfil this requirement. The provision of such a loan facility under the current agreements, has delivered 489 MTR units in the period 2016 to 2019 spread across 29 local authorities.
My Department is aware of Sligo County Council’s views on a particular clause in the Capital Advance Agreement and is currently reviewing the technical aspect of this clause in question with a view to clarifying the situation for all those party to Capital Advance Agreements. My Department is engaging with Sligo County Council on the matter in an effort to ensure that the clause in question does not continue to be a barrier in the advancement of capital by Sligo County Council to AHBs to fund social housing supply in Sligo.
