Frank Feighan (Sligo-Leitrim, Fine Gael) | Oireachtas source

I am pleased to discuss this important issue and I thank the Senator for raising it. Approved housing bodies, AHBs, are independent, not-for-profit organisations and they are also known as housing associations of voluntary co-operative housing. It is important to be clear that AHBs are independent organisations and must operate in accordance with their own memorandum and articles of association. They are governed by their own board of directors and most are registered charities.

Under section 6 of the Housing (Miscellaneous Provisions) Act 1992, housing authorities may provide assistance to such bodies for revision and management of housing for people with a housing need. Accordingly, AHBs are key partners of local authorities and the Department of Housing, Local Government and Heritage across the broad spectrum of housing delivery. AHBs are funded for delivery of housing units and related services by the Department through local authorities which have an administrative and oversight role under the relevant social housing funding schemes. If an AHB is in receipt of funding under such a scheme for the provision of social housing, it must comply with the terms and conditions of that scheme. The oversight of this rests with the local authority in whose functional area the scheme is located.

Under such schemes, the AHB is required to make the property available for social renting for the duration of the mortgage or, as the case may be, the availability agreement. On expiry of the mortgage period and subject to compliance with the terms of the funding agreement, the AHB becomes the owner of the property.

In accordance with departmental guidance, local authorities are requested to notify the Department of Housing, Heritage and Local Government on release of all mortgage charges to AHBs within their area. Should an AHB decide to sell a property that has been purchased using Exchequer funding, they must do so in accordance with any conditions attaching to the funding of that property. The funding implications relating to such a sale may vary depending on the funding mechanism under which the property was acquired. If a property is owned outright by an AHB and is not subject to public funding, the AHB may choose to sell that property, once this is allowed for in its constitution. AHBs must have as their primary objectives the relief of housing needs and the provision and management of housing included within their memorandum and articles of association or registered rules, as the case may be. The vast majority of AHBs are registered charities and, as such, must also comply with the provisions of the Charities Acts relating to the sale of charitable assets.

It is important to be clear that the tenant (incremental) purchase scheme for local authority owned dwelling does not extend to AHB properties and it is not open to the Minister for Housing, Local Government and Heritage to direct AHBs in this regard.

I heard the Senator's concerns regarding the minutes of the 1993 local authority meetings and will bring them to the Minister.