Barry Cowen (Offaly, Fianna Fail)
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1. To ask the Minister for Housing, Planning, Community and Local Government his plans to introduce an affordable rental scheme to subsidise rents for low to middle income households in employment; the reason his Department decided not to use the €10 million allocated in budget 2016 for a pilot scheme for this purpose was not utilised. [34098/17]

Barry Cowen (Offaly, Fianna Fail)
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My question relates to an issue I referred to earlier during the passage of the legislation, which is the absence of an affordable housing scheme. In the Rebuilding Ireland programme it was envisaged that local authorities would look at ways in which they could facilitate and accommodate such schemes and maybe have them on a local authority or regional basis. The time has come for the Government to bring forward both an affordable rental and affordable purchase scheme, which the market is crying out for. I would like to hear the Minister's views and opinions on the matter before we deliberate any further.

Eoghan Murphy (Dublin Bay South, Fine Gael)
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Action 4.6 of the Rebuilding Ireland action plan provided for the introduction of an affordable rental scheme to enhance the capacity of the private rented sector to provide quality and affordable accommodation for households currently paying a disproportionate amount of disposable income on rent. Provision was made for €10 million per annum to be allocated through my Department’s Vote for that purpose. As set out in the strategy for the rental sector published in December 2016, the commitment to develop an affordable rental model is now to be progressed through kick-starting supply in rent pressure zones. Lands held by local authorities in such zones are to be brought to market on a competitive tendering basis, with a view to leveraging the value of the land to deliver the optimum number of units for rent, and in particular targeting middle income households in mixed tenure developments. This is intended to allow the rental units to be made available at below market prices without the need for ongoing rental subsidies. Accordingly, the provision of €10 million earmarked for the affordable rental scheme is being redirected to support additional activity under other housing programmes within my Department. An important policy intervention in the delivery of new housing supply under pillar 3 of Rebuilding Ireland is the development of State-owned lands for mixed tenure housing, particularly in the major urban areas where demand is greatest. I have asked all local authorities to be innovative and proactive in developing these sites. The final model for each site, including the affordable rental element, will be the subject of careful consideration by the local authority concerned, including by the elected members, who are best placed to know and provide for the housing need in their area. My Department is considering, in conjunction with local authorities, what national or local eligibility requirements should be specified. I am also considering further initiatives and actions to address the issue of affordability in the context of the targeted review of Rebuilding Ireland which my Department has now commenced.

Barry Cowen (Offaly, Fianna Fail)
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I thank the Minister for his response. Is it a source of personal regret that despite the fact that €10 million was specifically allocated for this purpose in budget 2016, as the Minister alluded to, it is now being redirected to other initiatives? Was that at the request of the previous Minister? As a new Minister in the role, is the Minister disappointed it was the case? Does he think he will be able to regain lost ground on this issue? One hoped the pilot scheme would have been deemed to have been successful by this stage and that a supplementary budget would have been made available for an enlargement of it or a rolling out of it across the country?

Eoghan Murphy (Dublin Bay South, Fine Gael)
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It is not a source of regret. It is a better use of resources to use our State-owned lands in this way to try to leverage affordable rent and affordable buy models and to have that €10 million to allocate to other areas where need arises. A recent example is when we had to allocate an additional €10 million to try to accommodate 200 more families who presented as homeless in the past number of months. On the issue of affordability and the review under way in the Department, that particular section of this problem, affordable rent and affordable buy, has to be a part of some of the new solutions that will be brought to bear. It is a part of our consideration. Deputy Boyd Barrett talked about this issue on Second Stage of the Bill. Anything we do at each point in the housing market will have an effect on the other points. The delivery of new social houses is very important. If we can also bring in new types of accommodation that are affordable for people to rent or buy, it will relieve pressures in other parts of the market, which would make it easier for us to combat the problem we are facing as a whole which is both a housing crisis and a homelessness emergency.

Barry Cowen (Offaly, Fianna Fail)
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It is some months since the publication online of the available sites around the country which are in the gift of many local authorities. The public was requested to express an interest in being considered by local authorities to develop sites on a contract or partnership basis into the future. Can the Minister ascertain at this stage the sort of response there has been and if it is from that source that affordable schemes are emanating? If so, is there a blueprint there for something to be initiated before the budget to honour the commitment that was given in budget 2016?

Eoghan Murphy (Dublin Bay South, Fine Gael)
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With regard to the active management of local authority lands, the Rebuilding Ireland map was published in April this year. There is potential, if one looks at those lands and where they are located, for 50,000 new homes, which is significant. It is a very important part of what we want to deliver. We facilitated a workshop in the Department on last Monday, 10 July, to get the ball rolling with local authorities. I have requested that the plans for what we will do with that work to be prepared by the end of September.

There are models out there for affordable buy and affordable rent that are being examined at the moment. One particular model involves co-operative housing and an affordable buy scheme. I had the privilege to hand the keys over to a new family moving into one of those homes out in Ballymun earlier this week. A total of 47 or 49 units will be delivered at an affordable cost to people who can get a mortgage and move into that area. The cost is about €170,000 for a three-bedroom house, which is graded A2. There are schemes and models that are working. My job as part of the review is to bring those schemes together and drive them from the Department. If a scheme is working, we have to see if it can be applied and rolled out across the country.