John Curran (Dublin Mid West, Fianna Fail)

I thank the Deputy for raising the matter, which I am taking on behalf of my colleague, the Minister for the Environment, Heritage and Local Government.

The enactment of the Housing (Miscellaneous Provisions) Act 2009 is a milestone in the development of social housing policy in this country. The Act will improve housing services and their delivery by giving effect to a range of reform measures and establishing a framework for a strategic approach by housing authorities to the delivery of a diverse range of social housing options. Part 4 of the Act represents a major step forward in the evolution of tenant purchase policy and practice with the introduction of a scheme for the sale of local authority apartments to tenants.

This legislation takes account of the difficulties experienced with previous attempts to introduce tenant purchase of apartments in areas such as the management of apartment complexes, insurance, the cost of maintenance and the transfer of legal title. While the new scheme tries to build on best practice in the private sector in the management of multi-unit residential developments, it also has to incorporate new arrangements to reflect the movement from social renting to private ownership. The transition from a rented social housing complex to a mixed tenure of privately-owned and social-rented accommodation adds an extra dimension to the legal and practical problems that can arise in private apartment complexes and this is reflected in the Part 4 provisions.

The details of the apartments sales scheme must now be set out in regulations to be made under the Act. Matters that will be covered by the regulations include the conduct of the tenant plebiscite to gauge support for the sale of apartments in particular complexes, as well as the discounts to be granted to tenant purchasers and the circumstances in which they are allowable. The regulations will also prescribe matters relating to the annual service charges to be levied by the management company in designated complexes and the operation by the housing authority of the support fund to assist the management company in carrying out major works to preserve and improve the complex. The form of the conveyancing documents giving effect to the three transfers of property ownership involved in the apartment scheme will also be prescribed in the regulations.

Apart from the regulations, the Department of the Environment, Heritage and Local Government must also prepare what may be termed a "model memorandum and articles of association" for the management companies that will assume ownership of apartment complexes designated for tenant purchase. The arrangements that need to be put in place for this purpose are being considered. In addition, guidance and advice must be prepared for housing authorities on all aspects of the operation of what is, of necessity, a complex scheme. While preparatory work for the apartments sales scheme is proceeding in the Department, the complexity of some of the issues involved precludes the setting of a firm date for the introduction of the scheme. However, the Minister is hopeful the necessary commencement order and regulations will be made, and guidance issued, this year in order that the scheme can be brought into operation as quickly as possible.

See this speech in context