Dáil Éireann Debate, Wednesday - 20 March 2024
615. Deputy Richard Boyd Barrett asked the Minister for Housing, Local Government and Heritage if a tenant’s top-up led them to accumulating arrears would he consider HAP rates for this case; and if he will make a statement on the matter. [11788/24]
View answerUnder the HAP scheme, tenants source their own accommodation in the private rented market. The accommodation sourced by tenants should be within the prescribed maximum HAP rent limits, which are based on household size and the rental market within the area concerned.
While there is no legislative provision precluding HAP supported households contributing towards the monthly rent required by the landlord, local authorities have a responsibility to ensure that tenancies are sustainable and that households in HAP are in a position to meet the rental costs involved.
Tenants in the 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. Where a person has a change of circumstances, such as a loss of income, they should notify the relevant local authority. The local authority can reassess those tenants and adjust their differential rent accordingly.
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. At end Q3 2023, the scheme had a 99% differential rent collection rate with minimal arrears arising for tenants or local authorities. Therefore, only a very small number of tenants have fallen into difficulty with their differential rent.
Since July 2022, each local authority has statutory discretion to agree to a HAP payment up to 35% above the prescribed maximum rent limit and for new tenancies to extend the couple’s rate to single persons’ households. Discretion can be increased up to 50% above the prescribed maximum rent limits for Homeless HAP tenancies in Dublin. It should be noted that it is a matter for the local authority to determine whether the application of the flexibility is warranted on a case-by-case basis and also the level of discretion applied in each case.
My Department continues to keep the operation of the HAP scheme under review and closely monitors the level of discretion being used by local authorities, taking into account other sources of data, including Residential Tenancies Board rent data published on a quarterly basis.
