The Housing Assistance Payment (HAP) scheme is a flexible and immediate housing support that is now available to all eligible households throughout the State. There are currently just over 36,000 households having their housing needs met via HAP and some 20,000 separate landlords and agents currently in receipt of HAP payments. A weekly average of 357 HAP tenancies are been set-up during 2018.
HAP is a form of social housing support under which local authorities make monthly payments on behalf of tenants directly to landlords in respect of rent, subject to the terms and conditions of the scheme. All the terms and conditions of the HAP scheme for both tenants and landlords are available on the dedicated HAP website, www.hap.ie, and associated HAP documentation.
HAP tenants are required to sign a rent contribution agreement to pay a weekly rental contribution to the local authority, in line with the local authority’s differential rent scheme. As set out in the rent contribution agreement, this weekly rental contribution must be paid by them so that they remain eligible for the HAP scheme. HAP recipients are required to set up automatic electronic rent payment arrangements.
Section 63(3) of the Local Government Act 2001 provides that, subject to law, a local authority is independent in the performance of its functions. Accordingly, the day-to-day operation of the social housing system, including HAP, is a matter for the relevant local authority.
In addition, with regard to differential rent, section 58(3) of the Housing Act 1966 provides that, subject to such Regulations, as may be made by the Minister under the section, a housing authority may charge such rent or other payment, as they may determine from time to time, in respect of a dwelling of which they are the owner. The making and amending of rent schemes and the administration of such schemes is accordingly the responsibility of housing authorities, as an integral part of their housing management functions.
There is an onus on local authorities to ensure that the administration of rents and associated matters are undertaken within the framework of an effective system for the proper management and maintenance of the housing stock. Rental income is the main source of funding for the management and maintenance of dwellings. Rent schemes developed should ensure that the overall rental income reflects adequately, insofar as it is practicable to do so, the cost of management and maintenance of the local authority's rented housing stock and enables the authority to fulfil its obligations to its tenants in regard to the management and maintenance of their dwellings. Broad principles in relation to this matter were laid down by my Department via Circular letter and associated guidelines, which drew on an extensive process of consultation with local authority practitioners, were also issued which should be of assistance in achieving good practice in the administration of rent related matters.
The HAP Shared Service Centre (SSC) manages the collection of all HAP tenants’ differential rents, on behalf of the relevant local authority, and the payment of all HAP rents to landlords on behalf of tenants supported by the HAP scheme. The HAP SSC applies a very clear communication policy if rental arrears issues arise. This policy includes regular and early written communication with tenants, landlords and the relevant local authority.
Outside of issuing the formal notification letters, there would always be attempts to contact the tenants by phone and by email to settle accounts and avoid escalation of the debt process. Depending on the activity of arrears in question, both the relevant local authority and the landlord are informed when an account has not been cleared and of possible suspension and/ or cessation of the HAP payment. However, in the vast majority of cases a payment plan to deal with the arrears is agreed between the tenant and the local authority, before there is any necessity to advise the landlord.
If the tenant does not contact their local authority or does not enter into a payment arrangement within 8 weeks of the arrears commencing, both the landlord and the tenant are informed that the HAP payment may be ceased.
To date, the approach has been very effective with minimal levels of rent arrears arising for HAP tenants. In 2017, when nearly 18,000 additional households were supported by HAP, the scheme had a 98% differential rent collection rate, with minimal arrears arising for tenants or local authorities. Therefore, only a very small number of tenants have fallen into difficulty with their differential rent.
My Department continues to keep the operation of the HAP scheme under review. In general, I am satisfied with the operation of the HAP scheme and I consider it to be a key vehicle for meeting housing need and fulfilling the ambitious programme under Rebuilding Ireland.
