Written answers

Tuesday, 16 July 2013

Department of Environment, Community and Local Government

Rental Accommodation Scheme Administration

Photo of Seán Ó FearghaílSeán Ó Fearghaíl (Kildare South, Fianna Fail)
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847. To ask the Minister for Environment, Community and Local Government in view of the Government's reliance in part on the rental accommodation scheme and long-term leasing arrangements to meet existing social housing demand, if he has investigated the long-term implications for housing authorities and approved bodies where leases end and tenants must be rehoused; if his Department is satisfied that at current rent levels sufficient funding may be generated to ensure that all properties leased may be bought up to standard on completion of the lease; if actuarial expertise has been used by his Department as part of the assessment process for these schemes; and if he will make a statement on the matter. [35535/13]

Photo of Jan O'SullivanJan O'Sullivan (Limerick City, Labour)
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My priority is to maximise delivery of social housing to cater for the greatest level of need at good value. It is simply not possible to purchase or build anything like the same number of units as can be provided for through the Rental Accommodation Scheme and the Social the Leasing Initiative. Leasing offers an effective and efficient response, taking account not just of the availability of resources but also current market conditions and the need for a broader range of more flexible delivery mechanisms than the traditional methods of social housing provision.

Approved housing bodies and local authorities retain the tenant's rent contribution to cover the cost of their management and maintenance responsibilities in respect of leased dwellings. In addition my Department has agreed to fund up to 50% of the cost of reinstatement under a lease agreement in returning a property in the same condition as at the commencement of the lease, less fair wear and tear. I am satisfied that this level of funding is sufficient and reasonable to cover these risks.

My Department commissioned the Housing Agency to undertake a financial appraisal of the long-term costs of leasing in comparison with other social housing delivery options. A copy of this report, entitled “Comparative Financial Appraisal of the Projected Long-Term Costs of Social Housing Delivery Mechanisms” is available on the Housing Agency's website at

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