Written answers

Wednesday, 14 October 2009

Department of Environment, Heritage and Local Government

Local Authority Housing

Photo of Michael D HigginsMichael D Higgins (Galway West, Labour)
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Question 133: To ask the Minister for the Environment, Heritage and Local Government if the market value of a house acquired under the leasing initiative increases substantially in value over the course of the lease period benefit will accrue to the local authority; and if he will make a statement on the matter. [35821/09]

Photo of Michael FinneranMichael Finneran (Roscommon-South Leitrim, Fianna Fail)
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It will be a matter for each authority to negotiate the terms of the lease arrangements they enter into, subject to my Department's approval under a broad range of sustainable communities and other criteria. The lease arrangements, once entered into, will apply for the full term of the lease regardless of whether or not property prices rise or fall, unless a break clause, purchase option or other provision is specifically included in the arrangements. The primary focus in negotiating leasing costs will be the delivery of value for money and I would expect that authorities would be able to secure leasing costs of at least 20% below market rental value. This reflects the element of risk, such as the vacancies and management and maintenance responsibilities, being transferred to the housing authority.

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