Joan Collins (Dublin South Central, People Before Profit Alliance)
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3. To ask the Minister for Environment, Community and Local Government if he will amend the Housing Act 2009 to resolve the problems which are affecting people who availed of the shared ownership scheme. [20639/13]

Jan O'Sullivan (Limerick City, Labour)
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The Government’s 2011 housing policy statement announced the standing down of all affordable housing schemes, including the shared ownership scheme, in the context of a full review of Part V of the Planning and Development Act 2000. That review is now almost concluded and I have also asked the Housing and Sustainable Communities Agency to provide me with a stand-alone analysis of the shared ownership scheme, including identification of the main difficulties and recommendations for mitigating measures. Any future changes to legislation governing affordable housing schemes, including the shared ownership scheme, will be made in the context of both pieces of work and I expect to make announcements in this regard in the near future.

It is relevant to note that the purchasers were in the position of having their share of the property rise in value when the market was rising. It should also be borne in mind that local authorities have drawn down loans on the rental equity portion with a view to facilitating the ownership of the property incrementally for the occupier. Every effort is made by housing authorities to assist borrowers who encounter difficulties in meeting their commitments. For example, article 10 of the Housing Regulations 1980 (Amendment) Regulations 1996 provides that, in cases of hardship, the loan repayment period may be extended and arrears capitalised so as to make repayments more manageable for the borrower.

Mortgage interest supplement under the supplementary welfare scheme, administered by the Department of Social Protection, is payable, subject to the qualifying conditions of that scheme, in respect of mortgages under shared ownership transactions, in the same way as in the case of mortgages generally. An annual subsidy towards rent payments under the shared ownership scheme is available, through the rental subsidy scheme, to households with a gross household income of up to €28,000 per annum in the preceding tax year. The level of subsidy ranges between €2,550 for incomes up to €13,000 and €1,050 for incomes up to €28,000.

Joan Collins (Dublin South Central, People Before Profit Alliance)
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I thank the Minister of State for her reply. She must be very much aware of the situation in which people find themselves in shared ownership. I wish to raise the matter concerning the Housing Act 2009. Without going into detail, in our area a particular person had a shared ownership crisis. She discussed it with the local council which agreed to take back the house and said that she would pay off the outstanding loan over 50 years at €200 per instalment. It would then put her on a voluntary housing list, although some people cannot get onto the list because they voluntarily gave up their home.

I was surprised that the Minister of State mentioned the mortgage interest supplement because people are not aware of it. We can take up that matter. The only way this can be dealt with is if the pressure is taken off local authorities in paying back the loan taken out by the Housing Finance Agency. Councils have to pay that money back and there are no insolvency arrangements. It must be taken in that context and there have to be opportunities for people to park their mortgages as part of an insolvency arrangement. I would like to hear the Minister of State's comments on that matter.

Jan O'Sullivan (Limerick City, Labour)
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I am aware that a number of Deputies have a big interest in this issue. That is why we are having this review which has nearly been concluded. Part of it concerns the fact that local authorities have taken on the financial burden and so we must find a way of addressing that problem. It has to work both for those in shared ownership and the local authorities.

We should spread the word more widely that the mortgage interest supplement is available to people on shared ownership schemes. As the Deputy said, I do not think it is widely known.

Joan Collins (Dublin South Central, People Before Profit Alliance)
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Does the review include examining the Housing Act 2009 because it does impact on that? There has to be a change at Government level to take pressure off local authorities which are being forced to pay back loans taken out under the Housing Finance Act.

Jan O'Sullivan (Limerick City, Labour)
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I have not prescribed what the review will examine. I will see it fairly shortly, as far as I know. There are a number of amending pieces of housing legislation coming down the track. Therefore, if we do need to amend legislation, we will have the facility to do so under the housing legislation we are currently working on. At this stage, however, I do not know if that will form part of the recommendations or not.