Dáil Éireann Debate, Wednesday - 28 January 2015
127. Deputy Bernard J. Durkan asked the Minister for the Environment, Community and Local Government the extent to which he and his Department have managed to address the inherited issue of distressed shared ownership mortgages; and if he will make a statement on the matter. [4044/15]
Amharc ar fhreagraIn 2013, the Housing Agency was asked to conduct a standalone review of the shared ownership scheme, including identification of the main difficulties and recommendations for mitigating measures. While an initial draft of the review was received from the Agency, a number of issues have been identified that need further detailed financial analysis in order to fully assess the impact on local authority finances of possible mitigating measures.
This substantial data collection project involving my Department, the Local Government Management Agency and the local authorities themselves is under way. It will be a number of months before sufficient data has been collected in order to complete the requisite analysis to finalise the review.
Pending full conclusion of this review, my Department issued a circular letter to local authorities setting out some of the options and interim actions that might be explored to alleviate the difficulties of those in shared ownership distress, such as allowing use of the Mortgage Arrears Resolution Process and room rental for Shared Ownership mortgage holders. It is accepted that these proposals are not a complete solution to the issues that arise for such mortgage holders but are intended as an interim measure pending the outcome of the review.
My Department issued revised guidelines to local authorities for dealing with mortgage arrears within the local authority sector in June 2014. Dealing with Mortgage Arrears: A Guide for Local Authorities is available on my Department’s website at:
http://www.environ.ie/en/Publications/DevelopmentandHousing/Housing/FileDownLoad,30943,en.pdf.
