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Repair and Leasing Scheme

Dáil Éireann Debate, Tuesday - 17 January 2017

Tuesday, 17 January 2017

Ceisteanna (471, 496, 524)

Thomas Byrne

Ceist:

471. Deputy Thomas Byrne asked the Minister for Housing, Planning, Community and Local Government the expected timeframe for the introduction of the repair and lease scheme in County Meath as outlined in budget 2017; and if he will make a statement on the matter. [41371/16]

Amharc ar fhreagra

Fergus O'Dowd

Ceist:

496. Deputy Fergus O'Dowd asked the Minister for Housing, Planning, Community and Local Government when plans to roll out the repair and lease scheme will be available to local authorities in counties Dublin, Meath and Louth; and if he will make a statement on the matter. [1181/17]

Amharc ar fhreagra

Brendan Griffin

Ceist:

524. Deputy Brendan Griffin asked the Minister for Housing, Planning, Community and Local Government further to this Deputy's submission of the rental renovation scheme proposal to his Department in 2015, the position regarding the rolling out of a scheme to assist owners of houses that are currently unfit for habitation to upgrade the houses to make them available for social housing purposes; if he will provide a timeline for the scheme; and if he will make a statement on the matter. [1700/17]

Amharc ar fhreagra

Freagraí scríofa

I propose to take Questions Nos. 471, 496 and 524 together.

The Repair and Leasing Scheme (RLS) has been developed to assist private property owners and local authorities or Approved Housing Bodies (AHBs) to harness the accommodation potential that exists in certain vacant properties across Ireland. The scheme was launched in Waterford and Carlow in early October 2016, on a pilot basis, and it is my intention that the scheme will be available nationally by April 2017.

The scheme is targeted at owners of vacant properties who cannot afford or access the funding needed to bring their properties up to the required standard for rental property. Subject to the suitability of the property for social housing, and the agreement of the property owner, the cost of the necessary repairs will be met upfront by the local authority or an Approved Housing Body (AHB). This allows for the property owner to sign-up to a lease arrangement for a length that is linked to the value of the repairs, subject to a minimum of 10 years. The value of the repairs will then be offset incrementally against the agreed rental payment over a defined period within the lease.

A property owner can either choose to arrange for a contractor to carry out the repairs themselves, or the local authority or AHB can arrange this instead. Property owners will not be required to take on landlord responsibilities and the local authority or AHB will have on-going management and maintenance responsibilities in respect of the properties.

A scheme of this nature will require both significant capital and current exchequer investment expenditure over the next 5 years and therefore must be properly analysed and assessed to ensure the best use of public money. The purpose of the pilot is to ensure that the scheme is appropriately modelled from a financial perspective but also, and critically, that it is workable from local authorities' and AHBs' perspectives and delivers high quality social housing effectively.

My Department and the Housing Agency, who are assisting with implementation of the scheme, are in regular contact with the two pilot local authorities and I understand that the pilot is progressing well at a local level. In parallel, my Department is also in contact with other local authorities to assist them with necessary preparations for the rollout of the scheme.

Several AHBs are working together with the Waterford and Carlow local authorities to manage the scheme in those particular areas and, as the scheme becomes available nationally, I expect that more AHBs will become involved in its roll out. AHBs have a proven record in managing the refurbishment of properties and their experience puts them in an excellent position to play a key role in the success of the scheme.

Waterford and Carlow have been advertising the scheme with local media and have made good progress in engagements with property owners. I understand that they have also been actively targeting properties that they are aware have been vacant for more than a year and would be suitable for social housing within city and town centres. Equally, Carlow County Council has indicated that many property owners expressing an interest have properties outside of town centres. Inspections of potential units have also commenced in both authorities. Some of the properties that are being put forward have not been suitable for social housing. In other instances, property owners have opted to explore selling the property to the local authority instead. The availability of the complementary Buy and Renew scheme, which I also launched in October, means that local authorities and AHBs, will have a range of funding mechanisms available to them to harness the social housing opportunity these vacant properties present.

Over the period 2016 to 2021, it is anticipated that up to 3,500 units will be secured for social housing under this scheme and I have committed to making €140m available over that period. While the current target for 2017 is 150 units, the interest expressed by property owners and stakeholders so far indicates that the 2017 target will be achieved and may even be exceeded following national rollout. Depending on the capacity of local authorities and AHBs to deliver under the scheme, as well as the necessary agreement on the financial considerations arising, I would certainly be supportive of the acceleration of delivery under the new scheme.

I would encourage any local a authorities that are eager to engage early with the scheme to liaise with the pilot local authorities and my Department, in order to be familiar with the requirements around participation and also the practical implementation issues that are being worked through with the pilot scheme.

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