Michael McGrath (Cork South Central, Fianna Fail)
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325. To ask the Minister for Environment, Community and Local Government his plans to address the situation faced by those with shared ownership arrangements with local authorities and who are presently servicing a mortgage and paying rent to the local authority; and if he will make a statement on the matter. [52555/13]

Jan O'Sullivan (Limerick City, Labour)
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The Government’s 2011 housing policy statement announced the standing down of all affordable housing schemes, including the shared ownership scheme, in the context of a full review of Part V of the Planning and Development Act. Details regarding that review are available on my Department’s website and the period for public submissions closed on 27 September 2013. Earlier this year, I asked the Housing & Sustainable Communities Agency to conduct a standalone review of the shared ownership scheme, including identification of the main difficulties and recommendations for mitigating measures. I have received an in initial draft of the review from the Agency and I intend to issue a circular letter to local authorities imminently with interim recommendations arising from the review.

A number of issues have been identified that need further detailed financial analysis in order to fully assess the impact on local authority finances of possible mitigating measures. This additional work is underway and I expect to make further recommendations to bring the review process to a conclusion in the near future. Also, on foot of the recommendations of the Keane Report on mortgage arrears, the Government launched a mortgage to rent scheme, in respect of distressed mortgages in the commercial sector, on a pilot basis in February 2012. This scheme was extended nationally in June 2012, targeting those low income families whose mortgage situation is unsustainable and where there is little or no prospect of a significant change in circumstances in the foreseeable future. The scheme ensures that the family remains in their home, while ownership is transferred to an approved housing body who in turn rent it to the original owners.

A pilot mortgage to rent scheme for the most acute cases of local authority mortgage arrears which was launched earlier in 2013, in Westmeath County and Dublin City Councils, has now been completed. It is my intention to extend this scheme throughout the local authority sector in the near future, as part of the package of options available to local authorities to deal with mortgage distress, including in the case of shared ownership customers.