Oireachtas Joint and Select Committees

Thursday, 30 May 2013

Committee on Environment, Culture and the Gaeltacht: Select Sub-Committee on the Environment, Community and Local Government

Residential Tenancies (Amendment) (No. 2) Bill 2012: Committee Stage

10:40 am

Photo of Jan O'SullivanJan O'Sullivan (Limerick City, Labour) | Oireachtas source

I move amendment No. 23:


In page 11, before section 11, but in Part 2, to insert the following new section:11.—(1) Section 134 of the Principal Act is amended—
(a) in subsection (2), by substituting "Subject to subsection (2A), an application" for "An application",
(b) by inserting the following subsection after subsection (2):
"(2A) Where an application under this section is made in respect of a tenancy and the dwelling that is the subject of that tenancy is a dwelling referred to in section 3(4), an application under this section in respect of such tenancy shall be made—
(a) where the tenancy has commenced before the day on which section 3(4) comes into operation, within 12 months from the day on which section 3(4) comes into operation,
(b) where the tenancy commences within the period of 12 months from the day on which section 3(4) comes into operation—
(i) within 12 months from the day on which section 3(4) comes into operation, or
(ii) within 1 month from the commencement of the tenancy, whichever is the later, or
(c) where the tenancy commences on a day that falls 12 or more months from the day on which section 3(4) comes into operation, within 1 month from the commencement of the tenancy.",
(c) by substituting the following subsection for subsection (3):
"(3) An application under this section shall—
(a) be in the prescribed form,
(b) subject to subsections (4) and (7), be accompanied by—
(i) subject to subparagraph (ii), the fee referred to in section 137(1)(b)(ii), or
(ii) in the case of a tenancy referred to in subsection (2A), the fee specified in section 137A(1)(a) or as the case may be the fee prescribed under section 137A(1)(b),
and
(c) where a fee referred to in subsection (8) is required to be paid under that subsection, be accompanied by that fee.",
(d) in subsection (4)—
(i) by substituting "requirements" for "requirement",
(ii) by substituting "do" for "does", and
(iii) by substituting "subsections (2)(a), (2)(b), (2A)(a) or (2A)(b)" for "subsection (2)(a) or (b)",
(e) in subsection (5)—
(i) in paragraph (a), by inserting "or where the applications are made pursuant to subsection (2A), the fee specified in section 137A(1)(a) or as the case may be the fee prescribed under section 137A(1)(b)," after "section 137,",
(ii) in paragraph (a), by substituting "subsections (2)(a), (2)(b), (2A)(a) or (2A)(b)" for "subsection (2)(a) or (b)", and
(iii) by substituting the following paragraph for paragraph (b):
"(b) the applicant has paid—
(i) in respect of several applications falling within section 137(3), the single fee referred to in section 137(2) and the dwellings to which those several applications related included the relevant dwelling, or
(ii) in respect of several applications falling within section 137A(3) the single fee referred to in section 137A(2) and the dwellings to which those several applications related included the relevant dwelling,",
and
(f) by inserting the following subsections after subsection (6):
"(7) The requirement, in subsection (3), for an application to be accompanied by a fee shall not apply to an application to register a further Part 4 tenancy pursuant to section 135(1)(c) if the application to register a further Part 4 tenancy is made within the period specified—
(a) in subsection (2)(a) or (2)(b), or
(b) in subsection (2A)(a) or (2A)(b).
(8) Where an application under this section is not made in electronic form the applicant shall pay the prescribed fee.
(9) The fee prescribed for subsection (8) shall not exceed the reasonable costs of processing the application.".".
In summary, these amendments provide for the registration fees approved housing bodies will pay to register their tenancies with the PRTB and the timeframe within which these tenancies must be registered. They also provide for some other miscellaneous amendments in relation to fees.

Under the 2004 Act, a landlord must register a tenancy within one month of the commencement of the tenancy. Amendment No. 23 provides for the timeframe within which approved housing bodies must register their tenancies as follows. Where the tenancy was entered into before the commencement of the new provisions, it must be registered within 12 months from the commencement date. Where the tenancy is entered into 12 months or more after the commencement of the new provisions, it must be registered within one month of the commencement of the tenancy. This mirrors the current requirements for the private sector. Where the tenancy commences within the first year after the commencement of the new provisions, it must be registered either within 12 months from the commencement of the new provision or within one month of the tenancy, whichever is the later.

This registration timeframe takes into account the significant numbers of existing tenancies held by approved housing bodies and the significant administrative burden of registering these tenancies. Therefore, I have sought to give approved housing bodies as long a timeframe as possible within which to register, while having regard to the need to have finality in the process. As such, all approved housing bodies have a full year to register their existing tenancies. This can now be done quickly and easily on the PRTB's online system. There is also an interim period provided for tenancies created in the first year after commencement. After the first year of operation of the new system, all approved housing bodies' tenancies must be registered within one month, which mirrors the system in the private sector.

Provision is also made in amendment No. 23 for the PRTB to charge an administration fee for processing a hard copy application form. The amount of the fee must be prescribed by the Minister and must not exceed the reasonable cost of processing the application. In addition, the amendment provides for the abolition of the registration fee for reregistering a tenancy after four years as long as the reregistration is done within the specified timeframes. The removal of this fee will encourage stable long-term tenancies in the private sector. This will also remove a significant financial burden from approved housing bodies as the approved housing bodies sector is predominantly made up of long-term secure tenancies.

Amendments Nos. 24 and 25 provide for changes to the composite registration fee charged by the PRTB. Section 137 of the 2004 Act provides for what is known as the composite registration fee or the multiple registration fee. This allows a landlord to avail of a significant discount when registering at the same time multiple tenancies of dwellings in the same property. This amendment limits the number of tenancies that can be registered using the composite fee to ten.

Amendment No. 25 provides for the registration timeframe for approved housing bodies. Where the tenancy is registered within the first year after the commencement of these provisions, the fee to be paid by approved housing bodies will be €45 for a single tenancy and €187.50 for multiple registrations. This is equal to half of the registration fee currently paid by landlords in the private sector. The amendments further provide that the fee after the first 12 months is to be prescribed by the Minister. The intention is that approved housing bodies will pay the same fee as private landlords after the initial discount period. That fee is currently €90 per tenancy. A similar power is also given in relation to prescribed fees for late registration, which I intend to be the same as the fees charged in the private sector.

The amendments make provision for a graduated late fee. The 2004 Act provides that if a landlord is late in registering a tenancy, he or she must pay double the registration fee. The amendments provide for penalties for late registration on an ascending scale.

The purpose of the amendment is to incentivise early registration but also to make the system fairer, as under the current provision, a landlord who pays the fee a year late is subject to the same penalty as a landlord who pays it a day late. The late fee will be €20 for each month the landlord is late in registering the tenancy. I also intend to provide on Report Stage for a maximum total late fee that may be charged. These amendments achieve a fair balance and I ask members to support them.

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