Pádraig O'Sullivan (Cork North-Central, Fianna Fail)
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This has been an issue for many of us across the House over the past couple of months. It has been flagged repeatedly by Government TDs as well as Opposition TDs. I would like to specifically talk about Cork city and county. Some 33 families in Cork city and around the same number in Cork county are currently in limbo. They are unsure what is happening with their applications for the tenant in situ scheme. I have seen the various pieces of correspondence between Departments and the local authorities over the past eight months.

Having read that correspondence it was quite clear to me that there was permission for the local authorities to exceed their initial allocations by up to 50%. Both Cork City Council and Cork County Council have taken advantage of that and tried to progress additional applications for the tenant in situ scheme. I understand why the Department of housing and the Department of public expenditure might have concerns about the way the scheme is being utilised by some local authorities, which were perhaps covering up for their own shortcomings in other areas of housing delivery and used the scheme to get out of the fix in which they found themselves. However, I can safely say that was not the case in either Cork City Council or Cork County Council where the scheme was utilised in the spirit in which it was intended, such as cases of families in danger of becoming homeless and going into emergency accommodation. Cork City Council and Cork County Council are, unfortunately, being punished because every local authority in the country has been tarred with the one brush. If the scheme is to be tightened up I would prefer that to be focused on the local authorities that are not doing their job and that are letting the side down, rather than punishing local authorities like Cork City Council and Cork County Council. By any metric – be it social housing delivery, affordable housing delivery or the delivery of private homes - both Cork City Council and Cork County Council have delivered. That is patently clear from the available figures.

I am deeply disappointed because, like all Deputies here, I am dealing with people in clinics weekly, many of whom are on the tenant in situ scheme and waiting for it to be unpaused, which is essentially what has happened in both Cork City Council and Cork County Council. The sale of approximately 30 properties is currently paused in both local authorities. It is only a matter of time before the landlords get fed up and enforce the eviction notices. More than likely, the properties will be sold privately and the tenants will have to enter emergency accommodation. We must get our act together in the coming weeks. I have spoken to the Taoiseach, the Minister for housing and the Minister for public expenditure about this and I believe a resolution is on the way, but while we wait for it to be introduced I fear that more families will not avail of the scheme and more local authorities will not be able to draw down funds for the scheme, which is unfortunately likely to lead to more families going into emergency accommodation. I would appreciate it if the Minister of State could give me an update on the resumption of the scheme, which has effectively been paused in both Cork City Council and Cork County Council.

Colm Brophy (Dublin South West, Fine Gael)
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I thank Deputy O'Sullivan for giving me the opportunity to reply to him on this issue. The Government is providing €325 million in 2025 for local authorities to buy second-hand properties, with a particular focus on the tenant in situ scheme, where tenants in receipt of HAP or RAS receive a notice of termination. While the clear focus of the Government must remain on increasing the supply of new-build social and affordable homes, a targeted social housing acquisition programme has been, and will continue to be, an important part of the policy response.

The social housing acquisitions circular that issued to local authorities recently sets out the revised arrangements for second-hand social housing acquisitions in 2025. Under the revised arrangements for second-hand acquisitions in 2025 local authorities will receive a capital funding allocation for the acquisition of homes for the following priority categories: the tenant in situ scheme; elderly and disabled persons; exits from homelessness; and buy and renew acquisitions that tackle vacancy. The provision of a capital funding allocation will help to promote best practice in obtaining value for money and provide local authorities with the flexibility to respond to needs and priorities locally within the categories of need being prioritised.

Despite coverage to the contrary, the eligibility criteria for the tenant in situ acquisitions in 2025 are not overly restrictive. The guidance is largely the same as what issued in June 2024 and is not substantially different to what was required in 2023. The Department asked local authorities, as it did in previous years, to ensure that they are responding to a valid notice of termination where there is a real risk of homelessness and to examine all options for the ongoing accommodation of the household before progressing as a last resort with an acquisition. The Department also asked that local authorities give priority to families with children, older persons or people with a disability who are at serious risk of homelessness. However, prioritising households should not be interpreted as excluding any household and the final decision on each individual acquisition rests, as it should, with the local authority.

Since the introduction of the tenant in situ scheme in 2023, a significant number of homes have been acquired. In the period 2023 to 2024, more than 3,300 second-hand acquisitions have been completed, of which more than 2,100 have been tenant in situ acquisitions where tenants in receipt of HAP or RAS had received a notice of termination.

The tenant in situ acquisitions programme was introduced by way of Government decision in 2023. The programme for Government commits to the continuation of tenant in situ acquisitions as an option for local authorities. Currently, there is a strong pipeline for second-hand social housing acquisitions, with more than 700 acquisitions in the pipeline. We have assured all local authorities of our continued support for their acquisitions activity.

To the end of April, local authorities have only drawn down €65 million or 20% of the €325 million which has been allocated for second-hand acquisitions in 2025. I again thank Deputy O'Sullivan for raising this issue.

Pádraig O'Sullivan (Cork North-Central, Fianna Fail)
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I thank the Minister of State. I might pick up on the last point. It is interesting to hear that only 20% of the fund has been drawn down. I know that in the case of both Cork City Council and Cork County Council they have drawn down the full allocation for 2025, or committed to it. If only 20% of the funding has been drawn down, could the reallocation of the funding from other local authorities not be considered if they have not drawn it down? Does the Minister of State have figures for 2024 which show whether the full allocation was drawn down? I am interested in hearing about that.

The Minister of State referred to the merits of the scheme. I do not need to be convinced of how good the scheme is; we all know the scheme works. As he outlined, it has delivered 3,300 second-hand acquisitions. It is a great scheme. I just do not understand why we are barring people from availing of it, which is effectively what we are doing. Whether we like to admit it here or not, we are doing that because a commitment was given to local authorities to go beyond the 2024 allocation and proactive local authorities such as Cork City Council and Cork County Council did exactly that. They used the scheme to its fullest extent and then they went beyond it, as per the circular, and exceeded their targets by 50%. They were permitted to do that. At that time, nobody flagged with either local authority in Cork or elsewhere that the money would affect their budget in 2025, which is what has happened. The logical step is to increase the budget for 2025 to allow people to engage with the scheme and to allow local authorities to start acquiring more properties. To be fair to her, the director of services in Cork City Council very rarely makes a public comment about Government decisions like this, but she said this would have a significant effect on the prevention of homelessness in Cork. That is the reality of what we are doing.

Colm Brophy (Dublin South West, Fine Gael)
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I again thank Deputy O'Sullivan for his contribution. I appreciate the sincerity with which he has raised this issue. We are committed to responding positively to it. My understanding is that Cork City Council's allocation for second-hand acquisitions in 2025 is €20 million. At the end of April, it had drawn down €6.9 million or 34% of its allocation. The Cork County Council allocation for second-hand acquisitions in 2025 is €15 million and at the end of April it had drawn down €0.5 million or 3% of its allocation.

The Government decision of 4 March 2025 decided on a total of €325 million for second-hand social housing acquisitions in 2025. The approach to funding allocations was a change from the approach taken in 2023 and 2024, when local authorities were issued with a guide number of acquisitions. The intent is to allow local authorities negotiate the acquisition costs with vendors and landlords and to achieve the best value for money. Each local authority has now received its individual allocation, with a total allocation of €35 million for Cork City Council and Cork County Council for 2025.

For acquisitions where there is a tenant in situ, local authorities will assess the options available in each case and decide on the appropriate action. Prioritising vulnerable households for support under the scheme is important, but it does not mean excluding others. It will be a matter for local authorities to respond to local needs. I assure the Deputy that the Department of housing will continue to engage with local authorities on any challenges that have emerged, so as to ensure the tenant in situ acquisitions remain an option in 2025 where other solutions cannot be found.