Dáil Éireann Debate, Wednesday - 4 March 2015
218. Deputy Bernard J. Durkan asked the Minister for the Environment, Community and Local Government the current position/status of unpaid shared ownership mortgages, impairment of which is due to an annual increase of 4.3% on rental equity; if he will suggest a general resolution; and if he will make a statement on the matter. [9568/15]
Amharc ar fhreagra224. Deputy Bernard J. Durkan asked the Minister for the Environment, Community and Local Government the progress made to date in the matter of resolving issues arising from shared ownership mortgages; if he has received information relating to the full extent of associated problems; and if he will make a statement on the matter. [9590/15]
Amharc ar fhreagraI propose to take Questions Nos. 218 and 224 together.
In 2013, the Housing Agency was asked to conduct a stand-alone 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.
