Ciarán Lynch (Cork South Central, Labour)
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Question 104: To ask the Minister for the Environment, Heritage and Local Government the local authorities that have participated in the leasing initiative to date in 2009; the amount of the €20 million provision which has been allocated to each of the participating local authorities; the number of properties acquired by each local authority under the scheme to date in 2009; the average cost and duration of the lease; the way market value was established; if leasing costs of at least 20% below market value were secured; and if he will make a statement on the matter. [32847/09]

Michael Finneran (Roscommon-South Leitrim, Fianna Fail)
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Proposals under the Social Housing leasing Initiative have been received from, Dublin and Waterford City Councils, Templemore Town Council, Sligo Borough Council, and Cork, Donegal, Fingal, Leitrim, Limerick, Laois, Meath, Monaghan, Offaly, Sligo, South Dublin, Wexford and Westmeath County Councils.

In addition to the above, a number of other authorities have been in contact with my Department and are preparing proposals.

The funding of the leasing initiative is in addition to the allocations notified to each housing authority under the Social Housing Investment Programme. The initiative is project driven and no specific amount has been set aside for particular authorities.

The leasing initiative encompasses a number of different strands. Dwellings are acquired by housing authorities on long term leases from private owners, approved housing bodies provide units to the State under long-term availability agreements and vacant and unsold affordable units are leased to approved housing bodies for periods of up to 10 years. Accommodation provided is made available to persons on local authority waiting lists, persons with long term housing needs in receipt of rent supplement (i.e. households eligible under the Rental Accommodation Scheme) or persons who are homeless.

Funding approval for 842 properties has been given by my Department. Details of the housing authority areas concerned are set out in the following table:

Provisional approval has also issued for a further 367 units, where work on aspects of the proposals is still ongoing.

As part of the application for funding, housing authorities and where applicable, approved housing bodies must submit documentary evidence verifying rent levels for properties in the area and setting out the basis for the discount. The level of discount in a particular case may vary depending on the level of risk transferred and who assumes responsibility for issues such as service charges in apartment complexes. In standard leasing arrangements, in respect of the proposals examined by the Department, an average discount of 20% below market rent is being achieved.

Excluding the unsold affordable units, the duration of the lease/availability agreements in the proposals received has been between 10 and 20 years.