Aengus Ó Snodaigh (Dublin South Central, Sinn Fein)
Link to this: Individually | In context

Question 305: To ask the Minister for the Environment, Heritage and Local Government the number of households purchasing homes under the various affordable housing schemes administered by local authorities who are in ongoing arrears of more than six months, 12 months or 18 months in their mortgage repayments; the steps he will take to help mortgage holders and the local authorities to cope with this growing problem. [42434/10]

Aengus Ó Snodaigh (Dublin South Central, Sinn Fein)
Link to this: Individually | In context

Question 306: To ask the Minister for the Environment, Heritage and Local Government the consideration that he has given to allowing local authorities to purchase back affordable homes from those who have fallen into arrears of 18 months or more, as a logical use of the house purchasing programme which the councils engage in on an ongoing basis to add to local authority housing lists and thus ensure that those families do not end up homeless and that the council receives income in the form of rent for said properties. [42435/10]

Michael Finneran (Roscommon-South Leitrim, Fianna Fail)
Link to this: Individually | In context

I propose to take Question Nos. 305 and 306 together.

The majority of households who purchased under the various affordable housing schemes would have done so using loan finance from a private lending institution. These are essentially private homeowners and my Department does not therefore collect data in respect of the performance of such mortgages.

The Government has put in place a range of supports for home owners facing difficulty in meeting their mortgage repayments including a Code of Conduct on Mortgage Arrears which applies to all mortgage lenders; support from the Mortgage Interest Scheme under the Supplementary Welfare Allowance system; and the provision of advice on debt management through the Money Advice Budgeting Service (MABS).

In addition, the Expert Group on Mortgage Arrears and Personal Debt - which published its interim report in July 2010 – has now submitted its final report to the Minister for Finance. This is expected to include recommendations on further measures to assist such homeowners.

In terms of local authority borrowers, data published in the annual Service Indicators in Local Authorities gives details on local authority mortgage arrears generally, including some mortgages drawn down by households purchasing under the various affordable housing schemes as well as those purchasing under Tenant Purchase. The most recent data from the 2008 Report show local authorities mortgage arrears running at 11.7%.

Section 34 of the Housing (Miscellaneous Provisions) Act 2009 enables a housing authority to enter into an arrangement with a household for the rescheduling of payments of accumulated arrears, including interest, due to it in respect of specified rents, equity charges and loans, where the authority is satisfied that the household would otherwise suffer undue hardship.

Local authorities can and do exercise the powers available to them and endeavour, in all arrears cases, to engage proactively and constructively with a distressed borrower with the aim of enabling a household remain in their home. In addition, I issued comprehensive guidance earlier this year based on the Financial Regulators Code of Practice, to ensure that cases of local authority mortgage arrears are handled in a manner that is sympathetic to the needs of the particular household, while also protecting the position of the local authority concerned. My Department has also been represented on the above–mentioned Expert Group on Mortgage Arrears and Personal Debt.

Where any borrower, either from a local authority or from a private financial institution, is facing difficulties in meeting mortgage repayments, they should engage proactively and constructively with the lender to seek to achieve an agreed solution.