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Thursday, 9 Nov 2017

Written Answers Nos. 274-285

Housing Inspections

Ceisteanna (274)

John Curran

Ceist:

274. Deputy John Curran asked the Minister for Housing, Planning and Local Government the amount spent on rental inspections in each of the years 2012 to 2016, inclusive; and if he will make a statement on the matter. [47368/17]

Amharc ar fhreagra

Freagraí scríofa

The Government's Strategy for the Rental Sector, published in December 2016, sets out a wide range of measures to be introduced under the headings of Supply, Security, Standards and Services, many of which have already been progressed.

I have already introduced a range of measures to strengthen the applicable standards and to improve the services provided in terms of inspection and enforcement systems.

On 1 July 2017, updated standards, the Housing (Standards for Rented Houses) Regulations 2017, came into effect. These regulations focus on tenant safety and include new measures covering heating appliances, carbon monoxide and window safety. In addition, my Department published a guidance document to assist and support local authorities in implementing the 2017 regulations. With very limited exemptions, these regulations apply to local authority and voluntary housing units as well as private rented residential accommodation.

All landlords have a legal obligation to ensure that their rented properties comply with these regulations and responsibility for the enforcement of the regulations rests with the relevant local authority supported by a dedicated stream of funding provided from part of the proceeds of tenancy registration fees collected by the Residential Tenancies Board (RTB).

Since the establishment of the RTB, over €34 million has been paid to local authorities to assist them in the performance of their functions under the Housing Acts, including the inspection of rented accommodation.  Over 185,000 inspections were carried out during this period.

Over the five years from 2012 to the end of 2016, a total of €10.31 million was provided to local authorities for inspection purposes; €2.4m in 2012, €2.31m in 2013, €2.02m in 2014, €1.88m in 2015 and €1.7m in 2016.

The Rental Strategy recognises the need for additional resources to be provided to local authorities to aid increased inspections of properties and ensure greater compliance with the regulations.  Provision has been made to commence this process in 2018, when €2.5m in funding will be provided, with the intention of providing further increases each year in the period to 2021, by which point it is envisaged that €10m will be provided annually, so as to achieve an inspection coverage of 25% of rental properties annually.

Rental Accommodation Standards

Ceisteanna (275, 286, 287)

John Curran

Ceist:

275. Deputy John Curran asked the Minister for Housing, Planning and Local Government his plans to introduce regulations or legislation to limit the number of persons permitted to occupy a bedroom or a property dependent on its size; and if he will make a statement on the matter. [47369/17]

Amharc ar fhreagra

Thomas P. Broughan

Ceist:

286. Deputy Thomas P. Broughan asked the Minister for Housing, Planning and Local Government the measures he is taking to address the set of circumstances which led to the conditions shown in a report (details supplied) on RTÉ; his plans for legislation or other actions to improve dramatically Dublin City Council and other local authority management structures following the showing of the report; and if he will make a statement on the matter. [47469/17]

Amharc ar fhreagra

Thomas P. Broughan

Ceist:

287. Deputy Thomas P. Broughan asked the Minister for Housing, Planning and Local Government his plans for legislation or other actions to improve dramatically Dublin City Council and other local authority management structures following the showing of a report (details supplied) recently; and if he will make a statement on the matter. [47470/17]

Amharc ar fhreagra

Freagraí scríofa

I propose to take Questions Nos. 275, 286 and 287 together.

The Government's Strategy for the Rental Sector, published in December 2016, set out a series of measures to be introduced to ensure the quality of private rental accommodation by strengthening the applicable standards and improving the inspection and enforcement systems.

On 1 July 2017, updated standards, the Housing (Standards for Rented Houses) Regulations 2017, came into effect. These regulations focus on tenant safety and include new measures covering heating appliances, carbon monoxide and window safety.  In August, my Department published a guidance document to assist and support local authorities in implementing the 2017 regulations.

Additional resources for inspection and enforcement are also being provided.  Over the four years to the end of 2017, a total of €7.5m has been provided to local authorities for inspection purposes.  However, the rental strategy recognised the need for additional resources to support increased inspection of properties and ensure greater compliance with the regulations.  Provision has been made to start this process with an allocation of €2.5m in 2018. The intention is to earmark further increases over the period to 2021, by which point it is envisaged that €10m will be provided annually, achieving an inspection coverage of 25% of rental properties each year.

The issues of inconsistency and differences in capacity across local authorities are being addressed under the Rental Strategy.  Work is underway to build a more efficient, standardised and transparent inspections and enforcement approach across all local authority areas.  My Department, the Residential Tenancies Board and local authorities are working together to develop a national system of shared support services covering ICT, legal services, training and capacity development and resource and performance management.  This will mean that best practice approaches that work well in some local authorities will be developed and replicated across the system, taking advantage of economies of scale and ensuring that all local authorities have the appropriate personnel and systems in place, not only for inspection but also to act promptly and effectively when non-compliance is found.

It is also my intention to introduce further measures to ensure that landlords meet their obligations in relation to quality, safety and compliance with regulations and standards.  Landlords, when registering a tenancy with the Residential Tenancies Board (RTB), will be required to certify that the property in question is compliant with regulations relating to standards for rental accommodation, overcrowding and fire safety. In tandem, annual registration with the RTB will be introduced, effectively requiring annual certification by the landlord.  Failure to provide this certification, failure to register the tenancy or the provision of an untrue certification will all constitute offences, prosecutable by the RTB.

The 1966 Housing Act already establishes effective limits on the numbers of people that can occupy the same bedroom.  The Act requires that there is at least 400 cubic feet of free air space for each person in a bedroom.  It also provides that people of opposite sexes, who are not living as a couple, cannot be required to sleep in the same room.

The local authorities are responsible for enforcement.  Under the Act, a local authority can prohibit the use of an overcrowded dwelling, irrespective of whether it is being let or not, and can serve notice on the owner of a dwelling specifying the maximum number of persons that may occupy it without causing overcrowding.  If the owner of a house is causing or permitting the house to be overcrowded, the authority can require the owner to desist from causing or permitting such overcrowding within a period not exceeding twenty-one days.  Any person who neglects or refuses to comply with these requirements is guilty of an offence.

In the context of legislative changes in relation to the rental sector, particular attention will be given to possible amendments to the provisions in relation to overcrowding, both in terms of its legal definition and the enforcement actions and sanctions applicable to such situations.

Local Authority Housing Mortgages

Ceisteanna (276)

Michael McGrath

Ceist:

276. Deputy Michael McGrath asked the Minister for Housing, Planning and Local Government if the local authorities historically had or currently have interest rates on home loans that are linked to the ECB base rate and are, therefore, tracker mortgages; if he has satisfied himself that all borrowers are paying interest at the correct rate to their local authority; and if he will make a statement on the matter. [47370/17]

Amharc ar fhreagra

Freagraí scríofa

The current standard variable interest rate charged to local authority borrowers, applicable since 1 July 2016, is 2.3%, which is below the average variable mortgage rate charged by commercial lenders.

The rate charged by local authorities is arrived at taking into account their cost of funds from the Housing Finance Agency plc (HFA) (currently 1%), and the local authorities' costs for administration and mortgage arrears resolution (1.3%).

The interest rate charged is not linked to the ECB rate.  It is the case that as the cost of funding for the HFA has declined, six different interest rate cuts totalling 1.5%, have been passed to local authorities, since 2012.  This has resulted in the rate charged to borrowers being significantly lower than the average market rate.

Voluntary Housing Sector

Ceisteanna (277)

Thomas P. Broughan

Ceist:

277. Deputy Thomas P. Broughan asked the Minister for Housing, Planning and Local Government when legislation to underpin statutorily and regulate the work of housing voluntary bodies will be brought before the Houses of the Oireachtas; and if he will make a statement on the matter. [47371/17]

Amharc ar fhreagra

Freagraí scríofa

The Rebuilding Ireland Action Plan for Housing and Homelessness recognises the key contribution that Approved Housing Bodies (AHBs) make to the delivery of social housing and in this context it is important that AHBs have the capability to contribute to the additional social housing targeted over the period to 2021.

To this end, the housing delivery capacity of AHBs will need to expand greatly and they will require significantly increased external investment. AHBs that have statutorily regulated standards of governance and management capacity will be better able to access private or loan finance.

The proposed Housing (Regulation of Registered Housing Providers) Bill and the underlying policy, which was formulated in consultation with the sector, intends to establish a regulator to oversee the effective governance, financial management and performance of voluntary and co-operative housing bodies. The Bill aims to safeguard public and private investment in the sector, to rationalise and enable increased supply from the voluntary and co-operative housing sector and to ensure that the assets built through investments in the sector are managed sustainably and retained for the purpose for which they were created.  The statutory regulatory framework will provide further assurances to investors, tenants, the Government and to the sector itself that social housing providers operate in a well-regulated and stable environment.

My Department continues to work with the Office of the Parliamentary Counsel to finalise the text of the Bill for publication as soon as possible.  The complex nature of some of the issues related to transitioning from voluntary to statutory regulation has required additional consultation and consequential drafting. Notwithstanding this, I expect the Bill to be published before the conclusion of the current Dáil session. Until such time as the legislation is enacted and the statutory system of regulation is put in place, the interim regulatory arrangements in operation since 2014 will remain in operation.

Voluntary Housing Sector

Ceisteanna (278)

Thomas P. Broughan

Ceist:

278. Deputy Thomas P. Broughan asked the Minister for Housing, Planning and Local Government his plans to carry out value-for-money audits of State expenditure on housing voluntary and advocacy bodies in addition to existing annual audits of the sector by the Comptroller and Auditor General and his Department; and if he will make a statement on the matter. [47372/17]

Amharc ar fhreagra

Freagraí scríofa

Government Departments undertake expenditure reviews over three-year cycles; the current cycle covers the period 2015-2017.  The reviews may take the form of value for money reviews (VFMs), which are evaluations of major spending programmes, or focussed policy assessments (FPAs), which are smaller-scale exercises.

Departments commit to specific reviews in each cycle.  In the current cycle, my Department is undertaking a value for money review on expenditure in the homelessness area and focussed policy assessments on housing adaptation grants and Met Éireann’s international subscriptions.  The Met Éireann FPA is completed and published while the other reviews are underway.

The selection of a programme for a value for money review is informed by a number of criteria including the volume of expenditure (generally greater than €100 million); the relative impact of the programme area selected; and the availability of data.  No decisions have yet been made in relation to the choice of programmes for review in the 2018-2020 cycle.

In addition to this cycle of expenditure reviews, the Local Government Audit Service (LGAS) of my Department carries out VFM studies on local authority operations with a view to identifying best practice and recommending ways of improving existing procedures, practices and systems, thereby promoting efficiency and cost effectiveness.  In December 2015 the LGAS published a report on the oversight role of local authorities in the provision of social housing by Approved Housing Bodies under the main funding schemes.

In 2014, my Department established an interim Regulation Committee for the Approved Housing Body (AHB) Sector under the auspices of the Housing Agency, which, supported by a Regulation Office based within the Agency, oversees implementation of a voluntary regulation code (VRC) for AHBs.  At present, 249 AHBs have signed up to the VRC accounting for more than 90% of the total estimated housing stock in the sector.

As part of any application for housing funding from my Department and local authorities, each AHB is required to furnish proof of compliance with the VRC.  Only those AHBs that have undergone a satisfactory assessment as part of the annual assessment process by the Regulation Office are considered eligible for funding.

The Housing (Regulation of Registered Housing Providers) Bill and the underlying policy, which was formulated in consultation with the sector, intends to establish a Regulator to oversee the effective governance, financial management and performance of voluntary and co-operative housing bodies.  My Department is working with the Office of the Parliamentary Counsel to finalise the text of the Bill for publication during the current Oireachtas session.  Until such time as the legislation is enacted and the statutory system of regulation is put in place, the interim regulatory arrangements in operation since 2014 will remain in operation.

Tenant Purchase Scheme Review

Ceisteanna (279)

Charlie McConalogue

Ceist:

279. Deputy Charlie McConalogue asked the Minister for Housing, Planning and Local Government when the report on the review of the tenant purchase scheme will be published; and if he will make a statement on the matter. [47388/17]

Amharc ar fhreagra

Freagraí scríofa

In line with the commitment given in the Rebuilding Ireland Action Plan for Housing and Homelessness, a review of the first 12 months of the Tenant Purchase scheme’s operation has been undertaken. The review has incorporated analysis of comprehensive data received from local authorities regarding the operation of the scheme during 2016 and a wide-ranging public consultation process which saw submissions received from individuals, elected representatives and organisations.

The review is now complete and a full report setting out findings and recommendations has been prepared. Following consultation with relevant Departments on implementation arrangements, I expect to be in a position to publish the outcome of the review in the coming weeks.

Housing Assistance Payment Data

Ceisteanna (280, 281)

John Lahart

Ceist:

280. Deputy John Lahart asked the Minister for Housing, Planning and Local Government the average HAP payment issued by local authorities in 2017. [47389/17]

Amharc ar fhreagra

John Lahart

Ceist:

281. Deputy John Lahart asked the Minister for Housing, Planning and Local Government the amount spent on the HAP payment in 2016; and the estimated cost for HAP in 2017 and 2018. [47390/17]

Amharc ar fhreagra

Freagraí scríofa

I propose to take Questions Nos. 280 and 281 together.

There are currently over 29,000 households being supported by the Housing Assistance Payment (HAP) scheme across the State. On average, 350 households are being set up on HAP each week in 2017.

The HAP scheme is funded through a combination of Exchequer monies and tenant differential rents collected in respect of HAP tenancies. The exchequer outturn for the HAP scheme in 2016 was in excess of €57 million. The majority of this funding supported the ongoing costs of tenancies established in 2015 that continued into 2016, and the costs of the 12,075 new households supported by the scheme in 2016.

Budget 2017 increased the Exchequer funding for the HAP scheme to €152.7 million, in order to meet the continuing costs of existing HAP households, and the costs of the additional 15,000 households, targeted under Rebuilding Ireland, to be supported by HAP in 2017.  I expect this allocation to be be expended in full.

The 2017 average monthly rent paid to landlords under the HAP scheme (up to the end of Q2) was €688. However, it should be borne in mind that the roll-out of the HAP scheme was not fully implemented until 1 March 2017 with the introduction of Dublin City Council, Fingal County Council and Dún Laoghaire - Rathdown County Council.

Budget 2018 has increased the Exchequer funding for the HAP scheme by €149m to €301 million. This will allow for the continued support of existing HAP households and also enable the additional 17,000 households targeted under Rebuilding Ireland to be supported by HAP in 2018, as well as supporting the roll-out of the HAP Place Finder Support Service across the country.

Rental Accommodation Scheme Administration

Ceisteanna (282)

Dara Calleary

Ceist:

282. Deputy Dara Calleary asked the Minister for Housing, Planning and Local Government if the housing needs of persons on RAS are deemed to be met; if persons on RAS are still eligible for inclusion on local authority housing lists; and if he will make a statement on the matter. [47396/17]

Amharc ar fhreagra

Freagraí scríofa

Since 1 April 2011 and the commencement of section 19 of the Housing (Miscellaneous Provisions) Act 2009, rental accommodation availability agreements, including Rental Accommodation Scheme (RAS) agreements, are considered to be a form of social housing support. As such, tenants accommodated by a local authority in a RAS arrangement are deemed to have their housing needs met.

However, it was recognised that tenants who were allocated RAS accommodation prior to 1 April 2011 may have had expectations that they would remain on the main housing waiting list and be eligible for other forms of social housing support. Accordingly, my Department issued guidance to local authorities at the time, recommending that RAS tenants who wished to transfer to other forms of social housing support be given this opportunity via the creation of a transfer list option.

The principle being applied was that the reasonable expectations of these households should be preserved and they should be placed on a transfer list with no less favourable terms than if they had remained on the main housing waiting list. This list, whilst being a ‘transfer list’, would reflect the specific priority/previous position that that household had on the main waiting list within the authority area in which they are resident.  Local authorities are responsible, in the context of their individual schemes of letting priorities, for managing the operation of their transfers lists.

Since its introduction, RAS has provided and continues to provide high quality accommodation to many thousands of households. It remains an important delivery mechanism to meet social housing need in the context of the targets for delivery set out in the Government's Rebuilding Ireland Action Plan for Housing and Homelessness.

Housing Data

Ceisteanna (283)

Eoin Ó Broin

Ceist:

283. Deputy Eoin Ó Broin asked the Minister for Housing, Planning and Local Government the number of RAS, HAP and privately owned SHCEP long-term lease tenancies inactive on 31 December or each year since each scheme was introduced, in tabular form; and the annual cost of each scheme for each of these years. [47443/17]

Amharc ar fhreagra

Freagraí scríofa

The Social Housing Current Expenditure Programme (SHCEP) and Rental Accommodation Scheme (RAS) support the delivery of social housing by providing financial support to local authorities and Approved Housing Bodies (AHBs) for the leasing of houses and apartments.  The properties are secured by local authorities for social housing under leases or availability agreements which provide the local authorities with the authority to allocate the properties to tenants from their housing lists in accordance with their scheme of letting priorities.

Where a dwelling becomes vacant, the terms of the agreements provide that lease payments, to be made by the local authorities to the owners, continue for a maximum period of 3 consecutive months in order to allow for re-tenanting of the dwelling by local authorities.  If the dwelling remains vacant at the end of that 3 month period, it is deemed to be inactive. No payment is made by my Department in respect of inactive dwellings. A property under a lease or availability agreement may become vacant because a tenant has moved to other accommodation or is deceased. During the period of vacancy the local authority will undertake to allocate the property to another household in accordance with its scheme of letting priorities and on occasion, repair work may be required before it can be relet.

Under the Housing Assistance Payment scheme (HAP), a tenant sources their own accommodation, and the tenancy agreement is between the tenant and the landlord and is covered by the Residential Tenancies Act 2004 (as amended). HAP support is paid in arrears and only provided in respect of active tenancies that meet the terms and condition of the scheme.

The Housing (Miscellaneous Provisions) Act 2009 gives legislative recognition to rental accommodation availability agreements, including both SHCEP and RAS agreements, as a form of social housing support since 1 April 2011. The number of inactive privately owned dwellings under RAS and SHCEP, and the annual cost of each scheme for each year since then, is set out in Tables 1 and 2.  My Department does not collect data relating to periods of vacancy of less than three months.

HAP was provided for by the Housing (Miscellaneous Provisions) Act 2014 and Table 3 provides details in relation to the cost of the HAP scheme in each year since. The term "privately owned" excludes dwellings owned by AHBs, unsold affordable dwellings and dwellings owned by National Asset Residential Property Services (NARPS).

The number of inactive dwellings under SHCEP and RAS combined at end of 2016 (i.e. 315) constituted approximately 1% of the total number of 29,200 dwellings under the schemes at that stage.

Table 1: SHCEP

Year

Total Scheme Cost

No. of Privately Owned - Inactive Dwellings at 31/12

2011

 €13,817,464

Data not available

2012

 €20,814,526

Data not available

2013

 €27,362,615

Data not available

2014

 €34,844,781

104

2015

 €42,275,724*

164

2016

 €54,028,752

232

2017 to end Q3

 €40,551,993

322

*Of this figure, a total of €7,933,651 was self-funded by local authorities using funding from their RAS Reserves.

Table 2: RAS

Year

Total Scheme Cost

No. of Privately Owned - Inactive Dwellings

2011

€115,917,365

170

2012

€125,429,967

56

2013

€130,886,608

71

2014

€133,512,889

70

2015

€121,789,178*

60

2016

€130,998,164**

83

* An additional €14.84m in RAS recoupment claims was offset against local authority RAS Reserves in 2015.

** An additional €13.9m in RAS recoupment claims was offset against local authority RAS Reserves in 2016.

Table 3: HAP

Year

Total Scheme Cost

No. of Privately Owned - Inactive

2014

€0.394m

0

2015

€15.64m

0

2016

€57.69m

0

2017 to end Q2

-*

0

* It is anticipated that the Exchequer funding for 2017 of €152.7 million will be fully expended on the operation of the HAP scheme at year end.

Social and Affordable Housing Eligibility

Ceisteanna (284)

Éamon Ó Cuív

Ceist:

284. Deputy Éamon Ó Cuív asked the Minister for Housing, Planning and Local Government his plans to increase the income limits for eligibility for social housing (details supplied); and if he will make a statement on the matter. [47464/17]

Amharc ar fhreagra

Freagraí scríofa

The Social Housing Assessment Regulations 2011 prescribe maximum net income limits for each housing authority, in different bands according to the area, with income being defined and assessed according to a standard Household Means Policy.

The income bands and the authority area assigned to each band were based on an assessment of the income needed to provide for a household's basic needs, plus a comparative analysis of the local rental cost of housing accommodation across the country. The limits also reflect a blanket increase of €5,000 introduced prior to the new system coming into operation, in order to broaden the base from which social housing tenants are drawn and thereby promote sustainable communities.

Given the cost to the State of providing social housing, it is considered prudent and fair to direct resources to those most in need of social housing support.  The current income eligibility requirements generally achieve this, providing for a fair and equitable system of identifying those households facing the greatest challenge in meeting their accommodation needs from their own resources.

As part of the broader social housing reform agenda, a review of the income eligibility limits for social housing supports has commenced. I would expect the results of this review to be available for publication in 2018.

The Government is very aware of the general rise in house prices and in response, my Department has examined housing affordability in consultation with the Housing Agency, local authorities and other stakeholders as part of the targeted review of Rebuilding Ireland. The review is now at an advanced stage and I expect to be in a position to announce details of the outcome, including any additional measures, in the coming weeks.

It is important to note that there are currently two house purchase loan offerings available to lower income first time buyers from local authorities.

The first is a standard annuity mortgage available from all local authorities. The relevant terms and conditions applying to local authority housing loans are set out in the Housing (Local Authority Loans) Regulations 2012. Key eligibility criteria provide that a loan applicant must be a first time buyer and must be able to show their local authority that they cannot get a loan from a bank or building society. Also, the gross income (before tax) of a single income household in the previous year must be €50,000 or less and the combined gross income (before tax) of a two income household in the previous year must be €75,000 or less. The loan is subject to a maximum amount of €200,000 and can be used to finance up to 97% of the purchase price of a new or second hand property or the applicant can use it to finance the building of their own home. Further more detailed information is available from all local authorities.

The second option is the Home Choice Loan, a Government-backed mortgage for first time buyers.  First time buyers can apply for a Home Choice Loan to purchase a new or second hand property or build their own home. Home Choice Loan provides up to 92% of the market value of a property purchased, subject to a maximum loan amount of €285,000.  Home Choice Loan offers one variable interest rate. The rate is currently set at 3.25% variable, APR 3.30%.  Further information is available at http://www.homechoiceloan.ie.

Weather Events Response

Ceisteanna (285)

Seán Sherlock

Ceist:

285. Deputy Sean Sherlock asked the Minister for Housing, Planning and Local Government the applications for storm relief funding that have been submitted by Cork County Council and Cork City Council; and the engagement that has taken place between officials in his Department and officials from both councils. [47468/17]

Amharc ar fhreagra

Freagraí scríofa

My Department was in regular contact with Cork County Council and Cork City Council in the run up to Storm Ophelia which impacted the country on 16 October. As the track and intensity of the storm became more certain my Department wrote to Cork County Council and to Cork City Council as well as all other local authorities on 13 October advising that the Department intended to convene a National Emergency Co-ordination Group (NECG) and recommending that local authorities activate their local emergency co-ordination structures in advance of the weather system impacting the country.

As the storm approached the country on 16 October, the counties of the southwest, including Cork, were the first to be impacted. The NECG was in regular communication with the Cork local authorities during this time and information supplied by those authorities on the effects and severity of the storm were relayed to other local authorities and helped them to plan and focus their response. On 17 October a tele-conference was conducted between Cork County Council and the NECG to review the impact of the storm.

My Department has written to all local authorities, including the Cork local authorities, inviting them to submit claims for recoupment of response and clean-up costs that were incurred by them in dealing with the storm. We await claims for recoupment from the local authorities, including the Cork local authorities, in due course.

Funding for repair of any public infrastructure damaged by the storm is arranged directly between the relevant funding Department and the local authorities. I understand that, in contrast with other severe weather events, the overall damage to public infrastructure arising from the storm was limited.

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