Michael Finneran (Roscommon-South Leitrim, Fianna Fail)

I thank the Deputy for raising this issue. I addressed this matter in the House last June when I outlined the details of my Department's capital funding schemes, which provide up to 100% of the cost of voluntary and co-operative housing projects. Since March 2007, funding under the capital assistance scheme for the provision of voluntary housing covers up to 100% of the capital cost where all prospective tenancies are taken from the local authority housing waiting list. Grant assistance is also available towards site costs and funding towards the cost of communal facilities is provided, through my Department, from national lottery funding.

The Freemount Community Development Association Limited project is composed of 11 units of accommodation for older people at Freemount, County Cork, and was approved for funding of €1,046,466 in November 2002. Following receipt of a submission from Cork County Council advising that all of the tenants would be drawn from the housing waiting list, my Department increased the grant to €1,913,315 in March 2010. In addition, funding of €82,500 was provided toward the cost of associated communal facilities for the project.

A total of €1,817,649, amounting to 95% of the approved amount, has been recouped so far to Cork County Council on foot of payment claims for this project, leaving a balance of €95,666 yet to be claimed. Under the terms of the scheme, expenditure of up to 97.5% of the approved funding may be claimed on a project prior to completion of the accommodation. The balance is paid on the completion of the project and after a mortgage charge has been created on the dwellings. Approved housing bodies are required to enter into a legal agreement with the local authority, creating a mortgage charge on the dwellings provided under the schemes. This is to ensure that the accommodation is used in accordance with the terms of the funding schemes. Pending the completion of the mortgage deed agreement between the local authority and the housing body, an agreement may be made whereby the local authority can accept a letter of guarantee from the housing body, agreeing to sign the mortgage deed on completion of the scheme.

In 2002, my Department circulated a sample mortgage deed for use by local authorities in creating mortgage charges on dwellings. As a result of changes arising from the enactment of the Conveyancing Act of 2009, my Department is liaising with the Chief State Solicitor's Office and awaiting legal advice in regard to any amendments considered necessary to bring the sample mortgage deed into line with the requirements of the Act.

My Department will liaise with Cork County Council with regard to drawing down the outstanding funding on foot of a letter of guarantee, pending the circulation of a revised sample deed.

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