Fiona O'Loughlin (Fianna Fail)
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The issue I raise today is housing. Housing is very complex and we deal with it daily in this House and in the Dáil. A particular cohort of people have been forgotten about. I have raised this matter previously with the Minister but I want to have time devoted to it. The cohort in question is the tenants of approved housing bodies, colloquially known as co-operative schemes. A very good scheme was introduced approximately 25 years ago, whereby tenants who were on a housing list and qualified for social housing could come together, have input into the design of the housing scheme and fittings and be part of a co-operative to build their own scheme of houses. At the time, it was a visionary approach and I thank the civic and community leaders involved who ensured it happened.

In County Kildare we have 18 such schemes and they have housed 300 people. The tenants have been paying 18% of their gross income throughout the period in question. Many of them have children who are contributing. The loans, which were capital loans given by the Government through the local authorities, are almost paid off. I will give the example of Fen Grove in Newbridge, which has 18 houses. The loans will be fully paid in 2025. However, the tenants cannot buy their own homes. When people got together to plan for the future and plan the houses, a commitment was made that tenants would have an opportunity to buy their homes, as is the case in the local authority housing scheme. I have seen minutes of meetings of the Fen Grove housing co-operative in 1993 that clearly state tenants would be able to buy out their homes. As I mentioned, there are various housing schemes in Kildare, which fall under eight different organisations, some of which have responsibility for a number of schemes.

There has been poor corporate governance, which has been documented. This is completely wrong. The oversight has been incorrect. The key issue I want to speak about, and that I want the Minister of State to bring back to the Minister and Ministers of State with responsibility for housing, is the fact that people should be able to buy out their own homes. These residents entered an agreement with their housing associations in good faith. They held up their end of the bargain and are now being left out to dry. This debacle has tied these families to a life of renting. At present, they have no option of owning their own homes. Many will not qualify for a mortgage now due to their age. Many have retired. These residents chose Fen Grove precisely so they would have an option to own their own home. At that time, homes were out of reach to them. They have built their lives and reared their families in these homes on the understanding that eventually they would have the option to own them. For the tables to be turned on them 25 years later is totally unacceptable.

Frank Feighan (Sligo-Leitrim, Fine Gael)
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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.

Fiona O'Loughlin (Fianna Fail)
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I thank the Minister of State. The families and individuals I am talking about are being sent from pillar to post. They are not being given adequate responses from anyone. They are not being shown the respect they deserve. The Department of Housing, Local Government and Heritage has been in contact with residents and told them that the decision to sell homes to residents is one for individual housing associations. The individual housing associations say it is not up to them. It is clear that mechanisms should be put in place to fulfil the promise that housing associations can actually make that decision. The residents need to have a clear direction on how they can purchase houses under approved housing schemes and under what criteria that can happen. From what the Minister of State said, I gather that approved housing bodies can make that decision but I assume the Department has some role relating to the criteria and we need to work on that.

I will briefly raise another issue. Some tenants are being moved from permanent homes to leased homes without security of tenure although they remain members of a particular AHB. I thank the Minister of State for his answer. He has provided some clarity. I look forward to continuing to work with the Department, the council and the residents.

Frank Feighan (Sligo-Leitrim, Fine Gael)
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I note the concerns of the Senator. I cannot speak on behalf of any individual AHB but I must reiterate that the sale of property by an AHB to a tenant is a matter for the particular AHB. Should an AHB choose to sell these properties, it must ensure it complies with its own constitution and governing rules having regard to its primary objectives. The AHB must also comply with the provisions of the relevant legislation relating to the sale of charitable assets in accordance with any guidance issued by the Charities Regulator. That is an important point to be clear on. I will, of course, convey the Senator's concerns to the Minister for Housing, Local Government and Heritage.