Stephen Donnelly (Wicklow, Independent)
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794. To ask the Minister for Environment, Community and Local Government if he has prepared for an increase in demand in services from his Department as a result of upcoming developments such as the Central Bank's updated code of conduct on mortgage arrears, the Land and Conveyancing Bill; the targets that have been set for the banks regarding sustainable solutions, or any other developments; the steps that have been taken to deal with any surge in demand; and if he will make a statement on the matter. [34971/13]

Jan O'Sullivan (Limerick City, Labour)
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The Government is acutely conscious of the difficulties many households are facing in terms of mortgage arrears. 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. The services of the Money Advice and Budgeting Service are also available to such borrowers and support is available through the Supplementary Welfare Allowance Scheme. As part of the Government’s implementation of the recommendations in the Keane Report my Department has developed a mortgage to rent scheme for households with commercial mortgages that:

- have had their mortgage position deemed unsustainable under a Mortgage Arrears Resolution Process (MARP ), as provided for under the Central Bank’s Code of Conduct on Mortgage Arrears;

- agree to the voluntary surrender of their home;

- do not have significant positive equity, and;

- are eligible for social housing.

Under the scheme, which was launched nationally in June 2012, a household with mortgage arrears goes from being a homeowner to becoming a social housing tenant of an approved housing body. The household voluntarily surrender their property to their lender who in turn sell s the property to a voluntary housing body. The housing body becomes the landlord and the household remain in the family home.

Local authorities have long been the lenders of last resort servicing the housing loans needs of less affluent members of society. Section 34 of the Housing (Miscellaneous Provisions) Act 2009 provides local authorities with powers to deal flexibly with distressed borrowers, and they have demonstrated sensitivity over the years in this regard. My Department has issued guidelines to local authorities, based upon the Central Bank’s Code of Conduct, which continue the tradition of handling arrears in a manner sympathetic to the needs of the particular household, while also protecting the position of the local authority concerned. The Government’s housing policy statement, published in June 2011, clearly identifies that the priority for Government will be to meet the most acute needs of households applying for social housing support. I am determined to ensure that the social housing programme optimises the delivery of social housing and the return for the resources invested.

The financial parameters within which we will be operating for the coming years rule out a return to large capital funded construction programmes. The Government is committed to responding more quickly and on a larger scale to social housing support needs through a variety of mechanisms, including through increased provision of social housing.