Róisín Shortall (Dublin North West, Labour)
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Question 170: To ask the Minister for the Environment, Heritage and Local Government if up-front payments are currently being made to developers under the rental accommodation leasing scheme; the guidelines that are in place in relation to up-front payments under this scheme; the cost to the Exchequer of up-front payments to date in 2008; the controls that are in place to ensure that the State secures a return on this funding; the controls that are in place to ensure that funds used for up-front payments under such an arrangement do not adversely affect other social housing funding; and if he will make a statement on the matter. [32888/08]

Michael Finneran (Roscommon-South Leitrim, Fianna Fail)
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Up front payments in the form of a deposit, usually of one month's rent, are a standard element in the leasing of private rented properties, including under the Rental Accommodation Scheme. In addition, the Affordable Homes Partnership is currently undertaking the procurement of a Public Private Partnership for the leasing of private rented property in the Dublin region which is based on the combination of an up-front grant and a monthly rental payment. The procurement exercise is still underway and no properties have been secured or no payments made as yet.

It is a matter for individual local authorities in the first instance, subject to compliance with public procurement rules and having regard to the Capital Appraisal Guidelines of the Department of Finance, to seek to obtain the best value for money possible in the procurement of properties in current market conditions. My Department is open to considering proposals for securing leased properties for social housing that involve a combination of up-front and regular rental payments. At this point, however, the Department is not aware of any procurement of leased properties from developers where up-front payments, other than normal deposits, have been made.

As part of the process of agreeing the annual social housing investment programme, my Department meets with each housing authority to review its Housing Action Plan for the year. As part of this process objectives and output targets are set, including for the number of leased units to be provided in the year, and a budget agreed accordingly. The programme is then reviewed later in the year to assess progress and to make any necessary adjustments.