Michael McGrath (Cork South Central, Fianna Fail)
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282. To ask the Minister for Environment, Community and Local Government the number of local authority mortgages currently in existence; the total value of local authority mortgages outstanding; the number that are in arrears for more than 90 days; the total amount of arrears on local authority mortgages; and if he will make a statement on the matter. [5388/15]

Michael McGrath (Cork South Central, Fianna Fail)
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283. To ask the Minister for Environment, Community and Local Government the actions that are being taken to assist persons who are in arrears to a local authority and the actions to be put in place to achieve a sustainable solution to their arrears; and if he will make a statement on the matter. [5389/15]

Alan Kelly (Tipperary North, Labour)
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I propose to take Questions Nos. 282 and 283 together.

My Department issued revised guidelines to local authorities for dealing with mortgage arrears within the local authority sector in June 2014. Dealing with Mortgage Arrears – A Guide for Local Authoritiesis available on my Department’s website by clicking on the following link:

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On foot of the recommendations of the Keane Report on mortgage arrears, my Department launched a Mortgage to Rent scheme 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.

It is fully recognised that people with mortgages borrowed from local authorities have been affected by issues such as unemployment and possible negative equity over the last number of years. The scale of the mortgage arrears problem amongst Local Authority borrowers necessitated introduction of a Local Authority Mortgage to Rent scheme in February 2014 in line with the MTR Scheme introduced nationally in June 2012.

The Local Authority Mortgage to Rent (LAMTR) scheme, which was rolled out nationally in February 2014, allows local authorities to offer the mortgage to rent scheme to local authority mortgage holders with unsustainable mortgages. This enables families to stay in their home and their established community. Surrendering the ownership equity in a home is a very difficult decision for a family; however, the mortgage to rent option does provide families with stability and continuity, after an often long period of financial turmoil. Ownership of the home transfers to the local authority and the family pays a differential rent.

LAMTR is just one of a range of short term and long term solutions available to local authority mortgage holders in arrears. The Mortgage Arrears Resolution Process, already in place in respect of commercial mortgages, is now being implemented across all local authorities. In cases of acute mortgage distress, homeowners also have the option of seeking to avail of the legal process now also in place to deal with personal insolvency. The most important step any family in arrears can take is to engage early with the Arrears Support Unit of the local authority. Solutions are available and advice should be sought as early as possible.

My Department publishes a wide range of housing statistics, including the number and value of local authority mortgages with a breakdown of those in arrears for more than 90 days. The most recent statistics in respect of Q2 2014 are displayed on my Department’s website –- by clicking “Mortgage Data/Arrears in Local Authorities” under the Housing Loans contents.