Michael McGrath (Cork South Central, Fianna Fail)
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941. To ask the Minister for Environment, Community and Local Government the number of applications, in each year since its inception, for participation in the local authority mortgage to rent scheme; the number of approved and finalised applications under the scheme; the total funding for the scheme; and if he will make a statement on the matter. [19987/15]

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 piloted a Local Authority Mortgage to Rent (LAMTR) scheme in Dublin City and Westmeath County Councils in 2013. The LAMTR Scheme was rolled out nationally 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.

In 2013, my Department received and approved a total of 18 claims under the pilot LAMTR scheme. In 2014, 63 claims were received and approved. To date in 2015, six claims have been received and will be processed shortly. In total, my Department has paid €7.971m in respect of 81 claims. A 2015 budget allocation of €10m is available for Mortgage to Rent, including both the LAMTR and private MTR schemes. Both Mortgage to Rent schemes are demand led and offered, as part of the Mortgage Arrears Resolution Process, where it is considered the most appropriate resolution, from a range of possible resolutions, for householders with unsustainable mortgages.