Joe Costello (Dublin Central, Labour)
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I raise this issue again, having raised it first on 26 November 2014. I refer to the scandal of a very substantial housing development consisting of 99 units which has been lying idle since July 2014, in the middle of a housing crisis.

I raised it out of frustration in November and again in December and January, but nothing has happened to date other than a decision taken during a meeting in this House before Christmas, involving the Minister, the archbishop and the board of the Catholic Housing Aid Society, that the original tenants who had been put out in 2006 would be restored by Christmas. This indeed has happened, but that involves approximately 20 people. The other - close to 80 - units of accommodation remain idle and have remained idle since July 2014. It is a scandal given that people are desperately looking for accommodation, homeless people are on the streets and other people are in emergency accommodation. The local authority has given to the Catholic Housing Aid Society the names of people who have been waiting for months to be processed to enter their new accommodation.

This is all because of a petty wrangle between the board of the agency and Dublin City Council. The council quite rightly insists that they pay the differential rate for the accommodation. There is always a small top-up for voluntary housing and that would also be paid. However, what this board is seeking is quite extravagant and it would be quite improper to give in to the board's wishes in this respect. It would be quite improper particularly given that the Government has invested on behalf of the people €17 million on the construction of this accommodation.

From that point of view, it is extremely important that we protect our investment and get the people, who have been nominated to occupy those units, into those units in this very cold winter without delay. I cannot understand why there should be objections. I cannot understand why we cannot sort out the wrangle over the rent while at the same time people are moved in. I cannot understand why the Minister should not insist on having members appointed to the board so we can protect our investment.

Voluntary housing gets the lion's share - almost all the investment is contributed in capital assistance - and then has no say whatsoever in the running. Indeed it does not have the final say in the selection either.

It is important that we look afresh at developments of this nature. In this case, we need to act immediately. The Minister needs to state categorically that February will not go by without all people who have been nominated - almost 80 elderly people - for housing in Fr. Scully House being accommodated there.

Paudie Coffey (Waterford, Fine Gael)
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I thank the Deputy for raising this matter. The Minister, Deputy Kelly, and I share his concerns that this modern, purpose-built facility has not yet been fully tenanted. My officials are continuing to liaise closely with Dublin City Council to resolve the matter urgently as the current situation is not acceptable

As the Deputy is aware, this facility was funded under my Department's capital assistance scheme, which provides funding to approved housing bodies for the provision of accommodation for persons with specific categories of housing need, such as homeless and older persons, people with disabilities, returning emigrants and victims of domestic violence. In this case the Catholic Housing Aid Society is the approved housing body involved with the Fr. Scully House project.

Almost €17 million has been recouped by my Department in respect of Fr. Scully House since the commencement of the development in 2012. When Dublin City Council advised my Department during last summer of difficulties in its negotiations with the Catholic Housing Aid Society in agreeing the rent on these units, my officials immediately stressed the importance of resolving this issue as a matter of urgency so vulnerable people who need these units can move into these new homes as soon as possible. A number of high level meetings on the matter were convened, including one chaired by the Minister, Deputy Kelly, in order to resolve the matter urgently.

I understand that the rent levels being proposed by the Catholic Housing Aid Society in respect of these units are more in line with market rents than social housing rents. As a result, Dublin City Council has advised that it will be unable to nominate their tenants for these units.

Some progress was made in the matter just before Christmas which resulted in 23 former tenants returning to Fr. Scully House at their original rent levels, without the requirement for a deposit. It was also agreed that the housing agency would examine the costs incurred by Catholic Housing Aid Society and make recommendations in respect of the proposed rent levels.

I understand that following the housing agency's independent review of the rent levels, there is a difference of approximately €180 per month between the amount being requested by the Catholic Housing Aid Society and the amount acceptable to Dublin City Council. My Department is continuing to engage constructively with the council and the Catholic Housing Aid Society to review the costs incurred on this scheme and assess their impact on the proposed rent levels. A further meeting on the matter was held between the council and the Catholic Housing Aid Society last week and a follow-up meeting has been scheduled for tomorrow.

While I acknowledge that some progress has been made on this matter, it is unacceptable that 76 new state-of-the-art units remain vacant. This situation cannot be allowed to continue. My Department is continuing to liaise with Dublin City Council concerning its negotiations with the society to ensure a successful outcome to this issue as soon as possible. This will ensure that not only is the State's investment in this facility protected, but more importantly ensure that these units become homes for the vulnerable, elderly people they are intended to accommodate.

Joe Costello (Dublin Central, Labour)
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I thank the Minister of State for his detailed reply. Clearly the matter is not yet resolved. A difference of €180 per month is extraordinary. That equates to approximately €45 per week which is roughly the amount of rent that is paid by a tenant in the differential rent scheme. So that is almost double what is expected from a tenant.

We cannot continue with this charade any longer. The row with Dublin City Council has been going on since July 2014 and Dublin City Council did not start the row. The council has insisted that all its tenants should be treated equally and the differential rent should be the basis under which tenants pay the rent where it nominates people to both voluntary and social housing.

I wish to correct the statement the Minister of State made about nominations.

Dublin City Council has already nominated people for the units months ago but they have not been processed or written to. Since Christmas, the people have been left high and dry and they do not know what is happening. The 76 to 80 people are bewildered because no contact has been made with them. It is a totally unacceptable situation and the Minister of State must bang together some heads. The way to do so is to provide a deadline and say that, whatever happens, the situation must be resolved by the end of February this year. The State provided the money to build these units and the State is entitled to see its citizens accommodated in those units. I exhort the Minister of State, who has been trying hard, as has the Minister for the Environment, Community and Local Government, to impose a deadline. We cannot let the situation continue any longer. In the background, a large number of people - all elderly people - are homeless and awaiting accommodation when the winter is still upon us.

Paudie Coffey (Waterford, Fine Gael)
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I accept the Deputy's point that Dublin City Council has nominated many tenants. The waiting list needs to be facilitated and these modern purpose-built units are ready for letting. The current impasse cannot continue and the Minister, Deputy Kelly, and I will be keeping a sharp focus on the ongoing meetings, one of which takes place tomorrow. At the meeting, I will urge that progress be made. If both parties fail to reach agreement at that stage, the Department and the Minister will have to look at the legal options available to us to bring the dispute to a conclusion. That would be a reluctant step. Vacant units need to be brought into beneficial use for the benefit of tenants who need them. It is not a decision we take lightly but we may be left with little choice other than to take action if progress is not made very soon. It is our priority that the State investment in this facility is protected and it is also our priority to show that the units become homes for the people who most need them. I urge the Catholic Housing Aid Society and Dublin City Council to focus on this, get their heads together and find a resolution in the interests of the vulnerable people who need them as soon as possible. The Minister and I, and our officials, will be keeping a close watching brief on these meetings and we need to see progress. I cannot send a stronger signal than that. I thank the Deputy for raising the matter.