Pat Rabbitte (Dublin South West, Labour)
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Question 43: To ask the Minister for the Environment, Heritage and Local Government the method by which unsold affordable units are to be accommodated under the Social Housing Leasing Initiative; the parties to the lease agreement in view of the fact that the local authority is the owner of leased unit; if the recoupment model relates to the repayment of the interest costs of the loan, the way the capital cost is to be repaid; and if he will make a statement on the matter. [15950/10]

Michael Finneran (Roscommon-South Leitrim, Fianna Fail)
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The Social Housing Leasing Initiative encompasses a number of different strands, one of which gives local authorities the option to lease vacant and unsold affordable units to approved housing bodies.

The reason for using unsold affordable units to accommodate social housing tenants in the short to medium term is to match existing vacant housing stock available to housing authorities with the housing needs of those in need of social housing support.

Under current arrangements, unsold affordable units are leased to approved housing bodies for a period of up to 5 years and during this period the properties are sub-let to households eligible for social housing support. Throughout the lease period the local authority retains ownership of the units.

My Department recoups to the local authority for the duration of the lease period the interest payments liable in respect of the loans taken by the authority to fund the affordable properties in the first instance.

At the end of the five year lease period, local authorities will be required to review the use of these properties taking account of the prevailing market conditions and can consider a range of options in terms of the future use of the property. In summary, the housing authority may –

(a) sell the units to the existing tenants under the new incremental purchase arrangements;

(b) sell the home as an affordable unit;

(c) extend the leasing arrangement on a yearly basis for up to a further five years, or

(d) take the unit into its housing stock and continue to rent it to the household concerned, subject to having sufficient funding within its capital allocation and obtaining my Department's prior approval.

Depending on the option chosen the capital cost will be met by selling the property to the tenant under the Incremental Purchase Scheme arrangements, by selling the property as an affordable dwelling or, if the unit is taken into social housing stock, from the capital allocation available to the authority under the Social Housing Investment Programme.