Dáil Éireann Debate, Tuesday - 28 June 2022
267. Deputy Pearse Doherty asked the Minister for Housing, Local Government and Heritage if he will consider setting up a repayment plan using the household budget for persons who has HAP arrears to enable them to continue to receive HAP; and if he will make a statement on the matter. [34134/22]
View answer282. Deputy Pearse Doherty asked the Minister for Housing, Local Government and Heritage if a repayment plan for HAP arrears can be put in place for a person (details supplied) in County Donegal; and if he will make a statement on the matter. [34469/22]
View answerI propose to take Questions Nos. 267 and 282 together.
Tenants in the Housing Assistance Payment (HAP) scheme are required to sign a rent contribution agreement to pay a weekly rental contribution to the relevant local authority, in line with the local authority’s differential rent scheme. As set out in the rent contribution agreement, this weekly rental contribution must be paid by them so that they remain eligible for the HAP scheme.
The HAP Shared Services Centre (SSC) manages the collection of all HAP tenants’ differential rents, on behalf of the relevant local authority, and the payment of all HAP rents to landlords on behalf of tenants supported by the HAP scheme. The HAP SSC follows a clear communication policy if rental arrears issues arise. This policy includes regular and early written communication with tenants, landlords and the relevant local authority.
The approach taken by the HAP SSC has been very effective with minimal levels of rent arrears arising for HAP tenants. In 2019, the scheme had a 96% differential rent collection rate, with minimal arrears arising for tenants or local authorities. At Q4 2021, the scheme had a 99% differential rent collection rate. Therefore, only a very small number of tenants have fallen into difficulty with their differential rent.
During the Covid-19 emergency, the HAP Debt Management Process (DMP) was suspended from March 2020 and partially re-commenced in October 2020. This meant non-payment of differential rent by a tenant during that time did not affect payments to HAP landlords. Tenants were, however, expected to continue to pay their rent with supports available for those financially impacted by Covid.
Following on from the successful roll out of the Covid vaccine programme and the reopening of society, the normal DMP was reinstated from 6 September 2021.
Tenants that incurred arrears during the Covid-19 emergency were given additional time to engage with the HAP Debt Management Unit to clear their arrears, as well as access to payment plans as a specific Covid measure. Under the normal HAP DMP payment plans are not offered or available to tenants at this stage of the process. The HAP SSC has now resumed the standard debt management process.
The National Homeless Action Committee (NHAC), which I chair, was established in December 2021 in line with a commitment set out in Housing for All. At the first meeting of NHAC, it was agreed that immediate priority would be given to additional measures to prevent homelessness. A number of measures have been identified and are now being advanced. Three separate subgroups have also been established to focus on specific areas of homelessness prevention. One of these subgroups is tasked with considering the risk of homelessness for HAP/HHAP tenants in arrears. Each subgroup has been requested to provide an update at the next meeting of NHAC in July and to make a final recommendation/recommendations to NHAC at its Q4 meeting.
HAP tenants in arrears should contact their local authority and the HAP SSC to discuss the options that are available to them to ensure the continuation of their HAP support.
