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Rental Sector

Dáil Éireann Debate, Tuesday - 8 February 2022

Tuesday, 8 February 2022

Ceisteanna (310, 311)

Bríd Smith

Ceist:

310. Deputy Bríd Smith asked the Minister for Housing, Local Government and Heritage if approved housing bodies are permitted to raise rents in areas in line with rent pressure zones and not by having regard to their tenant's actual income; and if he will make a statement on the matter. [6250/22]

Amharc ar fhreagra

Bríd Smith

Ceist:

311. Deputy Bríd Smith asked the Minister for Housing, Local Government and Heritage if a tenant of an approved housing body having been housed from the local authority waiting lists can be charged a rent or face a rent increase based on reference to rent pressure zones and the percentage increases that apply to them rather than their actual income; and if he will make a statement on the matter. [6251/22]

Amharc ar fhreagra

Freagraí scríofa

I propose to take Questions Nos. 310 and 311 together.

Approved Housing Bodies (AHBs) are independent, not-for-profit organisations providing affordable rented housing for people who cannot provide housing from their own means and for particular groups, such as older people or homeless people. AHBs also include housing co-operatives, which are housing organisations controlled by their members/tenants who actively participate in setting their policies and making decisions.

AHBs can access a range of funding streams to assist with the delivery of social housing, made available by my Department, through local authorities, for example the Capital Advance Leasing Facility (CALF) with a Payment and Availability Agreement (P&A) or the Capital Assistance Scheme (CAS). The Capital Loan Subsidy Scheme (CLSS) was closed to new applications in 2011.

The terms and conditions, including nomination rights and rent setting, of these funding schemes are set out in my Department's Memorandum on Capital Funding Schemes for the Provision of Rental Accommodation by Approved Housing Bodies (Voluntary and Co - Operative Rental Housing): VHU: 2/02 of May 2002 and related circulars, and the relevant mortgage, loan agreements and Payment and Availability Agreements in force between the relevant local authority and AHB.

In addition, the Residential Tenancies (Amendment) Act 2015 amended section 3 of the Residential Tenancies Act 2004 so that dwellings let by AHBs to social housing tenants now come within the remit of the Act. The position of these tenants is significantly improved by the change, which commenced on 7 April 2016, as they now benefit from the following:

- Increased security of tenure;

- Access to Residential Tenancies Board (RTB) dispute resolution procedures, including free mediation; and

- Binding obligations on AHBs as landlords to, inter alia, register all tenancies, keep dwellings in good repair and allow peaceful occupation.

The Planning and Development (Housing) and Residential Tenancies Act 2016 introduced the Rent Predictability Measure to moderate rent increases in those parts of the country where rents are highest and rising fastest do not apply to AHB tenancies. However, three new sections were inserted into the 2004 Act by the Residential Tenancies (Amendment) Act 2015 provide for the setting of rents and rent reviews in AHB tenancies. They are:

- Section 19A provides for the setting of rent in AHB tenancies;

- Section 20A provides for reviews of rent in AHB tenancies; and

- Section 22A provides for the notification of a change in the amount of rent following a review under section 20A.

Section 78(1)(b) of the 2004 Act provides that a dispute may be referred to the Board regarding the amount that ought to be initially set (in compliance with section 19 or 19A) as the amount of rent under a tenancy. Section 78(1)(c) provides that a dispute may be referred as to the amount of rent that should be determined on foot of a review referred to in Part 3. These provisions mean that an AHB tenant may refer a dispute regarding the setting or review of rent to the RTB for resolution.

Furthermore, the Approved Housing Bodies Regulatory Authority (AHBRA) was formally established on 1 February 2021. A number of key provisions were commenced throughout 2021 to allow AHBRA to work towards becoming operational. AHBRA have developed draft standards, including those relating to tenancy management, which will require that AHBs have fair and transparent rent policies in place.

Question No. 311 answered with Question No. 310.
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