Michael Ring (Mayo, Fine Gael)
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Question 319: To ask the Minister for Social and Family Affairs the legal position regarding a rent allowance issue (details supplied). [7076/09]

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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Rent supplements are subject to a limit on the amount of rent that an applicant for rent supplement may incur. Rent limits are set at levels that enable the different types of eligible households to secure and retain basic suitable rented accommodation, having regard to the different rental market conditions that prevail in various parts of the State. The objective is to ensure that rent supplement is not paid in respect of overly expensive accommodation having regard to the size of the household.

Setting maximum rent limits higher than are justified by the open market would have a distorting effect on the rental market, leading to a more general rise in rent levels and in landlord income. This in turn would worsen the affordability of rental accommodation unnecessarily, with particular negative impact for those tenants on lower incomes. The legal basis for the setting of rent limits is provided for under Article 9(2)(i)(iii) of Statutory Instrument 412 of 2007. Article 9(3) of these regulations provides that a rent supplement shall not payable where the amount of rent exceeds the appropriate maximum amount of rent, as determined in the regulations, having regard to family circumstances and the location of the residence of the person concerned.

Notwithstanding these limits, the Health Service Executive has the discretion to award rent supplement above or below the prescribed rent limits, having regard to local rent levels or to meet the particular needs of an individual. Guidelines provide for the payment of rent supplement where the rent is above the statutory rent limit, in the following circumstances:

where there are special housing needs related to exceptional circumstances for example, disabled persons in specially-adapted accommodation or homeless persons,

Where the person concerned is entitled to an income disregard and has sufficient income to meet his or her basic needs after paying rent, taking into account the appropriate rate of Rent Supplement that is otherwise payable in the case.

where the tenant will be in a position to re-assume responsibility for his/her rent within a short period.

Where rent is paid in excess of the statutory limits, the post-rent income of the rent supplement recipient must not be less than the rate of supplementary welfare allowance appropriate to that person's family circumstances, less the minimum contribution of €18 a week towards the rent payment. These discretionary powers available to the Health Service Executive ensure that individuals with particular needs can be accommodated within the rent supplement scheme and specifically protects against homelessness.