Dáil Éireann Debate, Tuesday - 8 February 2022
312. Deputy Bríd Smith asked the Minister for Housing, Local Government and Heritage if a housing body (details supplied) and its complex at Ballinteer was provided with funding streams by the State which would allow it to set rents for tenants that are not governed by the differential rent setting used by the local authority or to clarify the method of rent setting that is used; and if he will make a statement on the matter. [6252/22]
View answerThe development at Woodpark, Ballinteer known as St Anne's was funded through the Capital Assistance Scheme (CAS); this funding supports priority areas such as age-friendly housing, accommodation for individuals and families who are homeless and housing for people with a disability.
The CAS Scheme at St Anne's was built to provide accommodation for older people. A 30-year loan in the sum of €8,170,789 was advanced for this scheme, and the mortgage was effected on 11 February 2010. Under the terms of the scheme, the loan must be secured by means of a mortgage on the premises by the local authority and is conditional on a number of terms and conditions, including letting policies, rights of nomination by the local authority and consultation with the local authority in terms of rent setting.
Memorandum on the Capital Funding Schemes for Approved Housing Bodies (Memorandum: VHU: 2/02 May, 2002) sets out general conditions that apply to Approved Housing Bodies (AHBs) when they seek funding under capital schemes for the provision of housing. Part 9 of the memorandum covers terms and conditions for the management, letting policies, rents and maintenance of dwellings provided under CAS.
Para. 9.6 of the memorandum sets out the parameters under which rent for the CAS housing units should be set. It states "AHBs should fix rents for the units provided at levels which are reasonable having regard to tenants’ incomes and the outlay of the AHB on the accommodation including the on-going costs of management. It should be a condition of advancing a loan under the CAS that the housing authority has clear rights of consultation in relation to the fixing of rents generally". Such a rent is referred to as an 'economic rent', which is not a market rent or a differential rent set.
