Bernard Durkan (Kildare North, Fine Gael)
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I thank the Ceann Comhairle, the Leas-Cheann Comhairle and the Minister of State for affording me the opportunity to raise this Adjournment matter once again in the House. I sympathise with the Minister of State opposite with whom I had this discussion last July. This matter relates to a voluntary housing scheme that was funded in its entirety by the Irish taxpayer through the capital allowance scheme and which was in receipt of the usual site for a nominal fee from the local authority. Although the concept worked well initially, for some unknown reason after the collapse of the Celtic tiger the association suddenly woke up and sent out demands for arrears of rent to several of its tenants. This was not exactly the best time to so do from an economic perspective. In addition, it set about carrying out repairs, some of which were required and some of which were neither warranted nor requested. A dispute now has arisen in which the local authority wishes to take no part in which the heating arrangements in a number of houses have collapsed. The association refuses to carry out any repairs, even though it is responsible, because arrears rest on this particular case.

The Minister is familiar with this particular issue and while I do not wish to delay the House, I wish to simplify matters. This particular project was built at the taxpayer's expense with 100% funding in every respect. All that is required from such voluntary housing associations is that they administer the scheme, collect rent, have an annual general meeting, abide by the articles of association and carry out their duties in accordance with the rules and regulations as laid down. It is alleged by the tenants that this is not now taking place and has not taken place for a number of years. Therein unfolds an impasse. As the Minister of State has the power and the will if he so wishes, I ask him to facilitate a meeting between the tenants, the association, the local authority and public representatives to be presided over by himself, if necessary, to bring this dispute to a rapid conclusion. This can be done quietly, amicably and effectively or it can be done the hard way. Threats are being issued to tenants at present to the effect that they will all be in court by Christmas and that the usual conclusion will be that they will be evicted and so on. Neither the Minister of State nor I wish to see something like that happen. Nor should it happen. I merely ask the Minister of State to put in place the arrangements with the local authority, the housing association, representatives of the tenants and public representatives with a view to arranging an immediate resolution of the problems and putting in place the necessary procedures to ensure this does not continue.

Michael Finneran (Roscommon-South Leitrim, Fianna Fail)
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I thank Deputy Durkan for raising this item as it affords me an opportunity to once again confirm this Government's commitment to working with the voluntary and co-operative housing sector.

I would like to begin by reflecting on the successful relationship to date between my Department, local authorities and the voluntary and co-operative sector. Since the 1980s, we have together overseen the delivery of some 23,000 homes under the capital funding schemes. This partnership has thus been a very successful one, with homes provided to many of the more vulnerable members of our society.

As the Deputy is aware the voluntary and co-operative housing programme has been delivered through two main funding measures - the capital assistance scheme and the former capital loan and subsidy scheme. Both schemes are administered by housing authorities. The capital assistance scheme provides capital funding of up to 100% of the approved cost of accommodation for people with specific categories of need. The capital loan and subsidy scheme provided 100% funding for the provision of standard housing for low-income families and individuals in need of social housing. In all cases where 100% funding was availed of, all tenants must be drawn from the local authority housing waiting lists. Léim an Bhradáin, the project specifically raised by the Deputy, was funded under this scheme.

My Department is anxious to ensure that all projects funded under the capital funding schemes are operated and managed in accordance with the terms of the schemes. 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.

My Department is currently engaged with the Irish Council for Social Housing in framing a policy to improve all aspects of governance, including matters relating to the operation of the management and maintenance of housing units provided under the funding schemes. This work is ongoing.

This brings me to the matter raised by Deputy Durkan. I outlined to the House last July the requirements necessary for a body seeking funding under section 6 of the Housing Act 1992. Funding of more than €3 million was provided in 2000, under the former capital loan and subsidy scheme, for the provision of 32 houses at Easton Road, Leixlip by the approved body, Léim an Bhradáin.

My Department's primary role in relation to the provision of accommodation under the capital funding schemes relates primarily to the provision of funds for individual projects. It is responsible for the legislative basis for the schemes, annual budgeting and recoupment of expenditure to the local authority. It is a matter for the housing authority to ensure compliance with the terms and conditions of the schemes and to have in place suitable liaison arrangements to oversee the administration of the schemes in order to preserve the investment made in the dwellings provided.

Housing bodies are the de facto owners of the accommodation and, as such, are responsible for the proper management and maintenance of the dwellings. Approved bodies are eligible for an annual management and maintenance allowance of €543 per occupied dwelling. This allowance has not been paid to this association to date but I understand that an application with accompanying documentation, including a full rent review and audited accounts, is being examined by Kildare County Council. I will ask the council to ensure all accounts are in order and the rent charged complies with the terms and conditions of the scheme before a decision is taken to approve any additional funding.