Dáil Éireann Debate, Thursday - 21 January 2010
24 Deputy Seán Sherlock asked the Minister for the Environment, Heritage and Local Government if communication has commenced between him and the Department of Finance regarding the potential for usage of unsold housing acquired by the National Asset Management Agency; and if he will make a statement on the matter. [2472/10]
Amharc ar fhreagraFrom a social housing perspective, I see clear potential for real and meaningful synergies between the work of the National Asset Management Agency in ensuring the stability of the financial system and the role of my Department in responding to social housing need.
For some time now the social housing investment programme has been undergoing a significant restructuring to shift the focus increasingly towards more flexible delivery mechanisms, through the Rental Accommodation Scheme and, more recently, the introduction of long term leasing arrangements, with a lesser reliance on construction and acquisition, in line with the reform agenda clearly set out under the Government's housing policy statement, Delivering Homes, Sustaining Communities. This approach is enabling the Government to deal proactively with the new circumstances in the residential property market, seeking to make economic necessity and social need work in tandem.
I and my Department have met with representatives of NAMA to discuss how we might seek to ensure that a social dividend is secured through the long-term leasing of suitable residential units for social housing purposes, while providing a return in line with NAMA's mandate. With NAMA now operational, I anticipate that this engagement will continue and intensify in the period ahead.
25 Deputy Jan O’Sullivan asked the Minister for the Environment, Heritage and Local Government the adjustment that will be made to the provisions of the Housing (Incremental Purchase) Regulations 2009 in view of the radically changed market conditions; if the scheme will apply to tenants of council flats; if it is intended that unsold affordable housing units will be sold to qualifying tenants under the incremental purchase scheme; the anticipated cost of the scheme; the number of sales targeted under the scheme in 2010; the method of assessment that will be used to deem applicants suitable for this scheme; and if he will make a statement on the matter. [2464/10]
Amharc ar fhreagraPart 3 of the Housing (Miscellaneous Provisions) Act 2009, which provides the legal framework for the introduction of the Incremental Purchase Scheme (IPS), has been commenced and came into effect on 1 January 2010. The Part was commenced to allow incremental purchase arrangements to be applied to new housing units being supplied by housing authorities. The Housing (Incremental Purchase) Regulations 2009 set out the classes of dwellings to which incremental purchase arrangements apply and I have no proposals to amend those Regulations. Further Regulations will be required to give full effect to the detailed terms of the scheme; these are currently being drafted by my Department with the intention that the scheme be fully rolled out to housing authorities by mid-2010.
On foot of the Regulations already made, housing authorities have been instructed to begin the process of designating suitable new-build housing for incremental purchase by way of a Manager's Order. The sale of incremental purchase units, including the number to be sold and the extent to which the IPS may be used in dealing with unsold affordable housing stock, will be a matter for individual housing authorities to decide once the scheme is fully operational. Households that will be eligible for this scheme are those assessed as eligible for social housing support and existing tenants who wish to transfer to homes made available under the scheme, subject to satisfying certain criteria, including demonstrating a capacity to service the required mortgage.
A separate scheme for the sale of apartments, based on the principles of the incremental purchase model, is provided for in Part 4 of the 2009 Act. Part 4 has not yet been commenced as detailed Regulations are required to give full effect to the scheme. My Department will be working to finalise these Regulations as soon as possible after the incremental purchase arrangements under Part 3 of the Act are rendered fully operational.
