Written answers

Wednesday, 24 June 2009

Department of Environment, Heritage and Local Government

Local Authority Housing

9:00 pm

Photo of Ciarán LynchCiarán Lynch (Cork South Central, Labour)
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Question 68: To ask the Minister for the Environment, Heritage and Local Government the action he will take to monitor market value in each local authority area to ensure that leasing costs of at least 20% below market value are achieved under the new leasing arrangements; the further action he will take to exclude break clauses from lease agreements to prevent owners from simply terminating the agreement in the event of a substantial increase in property values; if he plans that persons placed in social housing under the leasing arrangement will be excluded from local authority tenant purchase schemes and that they will forfeit a place on the social housing list; and if he will make a statement on the matter. [25057/09]

Photo of John GormleyJohn Gormley (Dublin South East, Green Party)
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Local authorities are required under the new leasing arrangements to submit their proposals to my Department for approval. As part of this process local authorities are required to submit a valuation confirming the current market rent for the proposed lease properties and a statement confirming the discount below market value that is being achieved.

In relation to the issue of break clauses, in most cases there will be no such provisions allowable within the lease. However, in particular circumstances, where authorities propose to include such clauses within a lease agreement, my Department will assess these on a case by case basis having regard, for example, to the likely on-going housing demand within the area concerned.

Households accommodated under the leasing arrangements will be deemed to have had their housing need met and therefore households will not remain on the local authority housing waiting lists. Notwithstanding this, households will be able to apply to transfer to alternative local authority property or to housing provided under the Incremental Purchase Scheme. I have, in the Housing (Miscellaneous Provisions) Bill 2008 currently before the Dáil, provided for a broadening of the definition of social housing support to encompass not only local authority owned or leased accommodation, but also voluntary/co-operative accommodation, and accommodation in the Rental Accommodation Scheme (RAS).

In tandem with this, new procedures for the allocation of social housing support will make it easier for social housing tenants, including tenants of leased accommodation, to transfer between the different social housing support options. Tenants of leased properties who subsequently transfer to local authority housing and who wish to avail of current tenant purchase arrangements will have their period in leased accommodation taken into account towards the tenant purchase discount.

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