Seán Ó Fearghaíl (Kildare South, Fianna Fail)
Link to this: Individually | In context

I thank the Ceann Comhairle for allowing me to raise this important matter. Voluntary housing has been one of the success stories of the past decade and it is an area of activity with which I am proud to have been involved. We are living in a protracted period of unprecedented levels of housing construction and it is important not to lose sight of the important role played by the voluntary sector. More than 600 approved voluntary bodies manage almost 19,000 housing units under the capital assistance programme and the capital loan and rental subsidy schemes. The capital assistance scheme has been used to great advantage in providing for specialised housing such as sheltered housing and housing for those with special needs, the elderly and so on.

For the most part, the capital loan and rental subsidy scheme is used to address demand in the area of mainstream social housing accommodation. Voluntary housing associations have been established in every county and communities are benefiting from their endeavours. The varied nature of the bodies approved by the Department is interesting, ranging in scale from local conferences of the Society of St. Vincent de Paul or local community councils providing and managing a handful of properties to large associations such as Respond, which has delivered and is managing almost 3,500 units. It is important that Members should recognise, acknowledge and value the contribution of the sector not just to housing provision, but to community building.

I refer to two areas of concern for tenants of properties provided under the capital loan and rental subsidy scheme, namely the need to adjust the rent scheme where it applies at 18% of all household income and the need to introduce a tenant purchase scheme, similar to that available to local authority tenants. I have engaged with the Minister of State on this on previous occasions. In raising these issues, I am conscious of a number of relevant points, not least that in many areas, integrated housing developments on the same site are coming on stream involving the local authority, voluntary and private sectors. In addition, a number of councils are engaging the services of voluntary housing associations to deliver their own social housing programmes. Against this background it is important to recognise that those on local authority waiting lists who avail of tenancies from voluntary housing associations do so of necessity rather than by preference in the great majority of cases. If they do not avail of the voluntary association offer, they may often be left waiting indefinitely by their local authority. Consequently, tenants of an approved housing body may live next door, in an identical house, to a tenant of a local authority. Both originated from the same local authority waiting list and both houses are 100% funded by the Exchequer. More often than not, however, the tenant of the voluntary housing association pays a higher rent, as the scheme is fixed at 18% of household income whereas the differential schemes operated by local authorities tend to be more favourable to the tenants of council houses. For example, tenants of the Cill Urnaí housing association at Kilberry outside Athy pay 18% of their household income, whereas tenants of Athy Town Council, just down the road, avail of the differential rent scheme where the rent is based on 15% of the principal earner's income. This is hardly fair. It is something I hope the Minister can review.

The same principle of equity should apply in the area of tenant purchase. Take what has happened at Monasterevin in County Kildare for example. Here, the local voluntary housing association constructed an estate of 28 houses. Twenty of these houses were to be occupied by members of the association, namely, people who had come together some years previously to build the housing scheme with the active support of local community activists. These 20 prospective tenants had an on-going involvement in all aspects of the housing project. When the houses were complete, eight were allocated to tenants of Kildare County Council which subsequently allocated the houses to families from its waiting list, the same list from which the 20 voluntary members came originally.

Despite being involved from the start in the development of the housing scheme, the voluntary housing association tenants cannot avail of a purchase scheme, while their neighbouring council tenants can. To put it more bluntly, those who have used the capital loan and rental subsidy scheme as a self-help initiative have found themselves disadvantaged. This is unfair and unjust and requires attention.

While some of the larger voluntary housing associations oppose in principle the concept of a purchase scheme, we must remember that there was once a lobby which opposed the sale of council houses to their tenants. The introduction of a tenant purchase scheme would unleash a new dynamic in the voluntary sector and encourage an even greater level of provision. I urge the Minister to consider this matter.

Noel Ahern (Dublin North West, Fianna Fail)
Link to this: Individually | In context

I thank Deputy Ó Fearghaíl for raising this matter and I welcome the opportunity to outline the ongoing development of the voluntary housing sector and discuss the need to introduce a tenant purchase option. I know of the Deputy's interest and involvement in the voluntary sector and his deep commitment to it.

The provision of social housing by the sector is funded under two separate voluntary housing schemes, the capital assistance scheme providing special needs housing and the capital loan and subsidy scheme which provides family type accommodation. Approved bodies work in partnership with the relevant local authority in providing social rental accommodation. Support for the development of the voluntary and co-operative sector is being continued and this is reflected by the recently increased funding limits I announced and the new arrangements for the sector under consideration.

The capital loan and subsidy scheme is, for the most part, used to fund family type social housing. Rental income is used to defray the cost of management and maintenance and for the provision of a sinking fund to cater for more extensive refurbishment later in the lifetime of a project. Under the terms of the scheme, approved housing bodies are responsible for determining the rent payable by a tenant which is based on household and subsidiary income in the previous tax year. Approved bodies, however, have at their discretion flexibility to modify the application of the rents scheme.

Since the introduction of the capital loan and subsidy scheme in 1991 it has been considered that the sale of individual housing units could undermine the capacity and resources of voluntary housing bodies to manage and maintain their estates and continue to provide further housing projects to meet pressing needs. There are incentives for residents of more than one year's duration who wish to move on and become homeowners elsewhere, but this is not what the Deputy has in mind.

To have maximum impact and to make our housing policy more relevant, the Department published a policy framework document just before Christmas entitled Housing Policy Framework — Building Sustainable Communities. In that document it is proposed that consideration would be given, in consultation with the voluntary and co-operative sector, to pilot a tenant purchase scheme for some new voluntary homes under the scheme. As well as expanding the investment programme, the Government will implement a programme of reforms, aimed at improving service and ensuring that social housing is delivered in a way that is fair and efficient. The reforms, including bringing forward the necessary legislation, will involve implementation of a fair rents policy across all social housing tenures.

I have listened to the Deputy and have discussed the matter with him previously. We have brought forward our housing policy framework and are fleshing it out. Later this year we expect to announce a more detailed new housing policy. I have heard what the Deputy wants and suggests and other Members would like to see a tenant purchase scheme in the voluntary sector. We have announced we will do it on a pilot basis for some new schemes and are continuing discussions with the sector. I will examine the Deputy's request and see if we can move forward when we produce our policy document later in the year.