Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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39. To ask the Minister for Environment, Community and Local Government if he will provide details of the roll-out of the mortgage to local authority renting scheme and the apparent difficulties with this scheme; and if he will make a statement on the matter. [15783/15]

Alan Kelly (Tipperary North, Labour)
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On foot of the recommendations of the Keane Report on mortgage arrears and a successful pilot scheme, my Department launched a national Mortgage to Rent (MTR) scheme for borrowers with mortgages from private institutions in June 2012. The scheme targets 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. Recognising that similar mortgage arrears distress was being experienced by people with mortgages borrowed from local authorities and recognising the scale of the problem, the Government rolled out a national Local Authority Mortgage to Rent (LAMTR) scheme in February 2014.

The LAMTR scheme 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. My Department is keeping the operation of the LAMTR scheme under constant review.

The LAMTR scheme 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 is being implemented across all local authorities. 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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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.

To date, 88 cases have been concluded under the MTR scheme, while the LAMTR scheme has seen 81 cases concluded.