Barry Cowen (Laois-Offaly, Fianna Fail)
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160. To ask the Minister for Environment, Community and Local Government if he will provide details on the new affordable rental scheme pilot announced in budget 2016; the locations for the pilot; the purpose of the scheme; and the way it differs from the housing assistance payment scheme. [36686/15]

Barry Cowen (Laois-Offaly, Fianna Fail)
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161. To ask the Minister for Environment, Community and Local Government his position on affordable housing provision; the directives that have been issued to local authorities providing guidelines on the provision of affordable housing units; if there is a need for provision of new affordable housing units, as opposed to just social housing units; if he is considering any new affordable housing schemes in the near future; and if he will make a statement on the matter. [36687/15]

Alan Kelly (Tipperary North, Labour)
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I propose to take Questions Nos. 160 and 161 together.

An Affordable Rental pilot scheme, which was announced as part of Budget 2016, is currently being developed by my Department, in the context of the implementation of the Social Housing Strategy 2020. €10 million has been made available from the proceeds of the sale of Bord Gáis Éireann for the scheme in 2016. This is to be an ongoing annual commitment to secure a long term increase in the supply of housing for affordable rental, which is expected to work on the basis of tenants paying the majority of the rental cost from their own resources, with the State helping to meet the shortfall.

It is intended that the scheme would be made available to employed households on low to moderate incomes, as well as being a possible support option for some households who qualify for social housing support. An affordable rental scheme targeted at these households has the potential to meet their housing need using an intermediary, State-funded, level of support to allow them to remain in a secure and stable private rented sector. A State policy intervention - such as a subsidy - would be applied to bridge the gap between what people can afford, and what the housing market charges. Such a scheme would also facilitate and incentivise private investment into this sector. I expect that the details of the pilot scheme, including the locations to be targeted, will be announced when the scheme has been finalised by my Department in early 2016.

Affordable Rental is a separate scheme to the Housing Assistance Payment (HAP). The implementation of the HAP scheme is a key Government priority and a major pillar of the Social Housing Strategy 2020. To be eligible for HAP, a person must first apply for and be approved for social housing support by their local authority. Under the scheme, eligible households source their own accommodation in the private rented sector, payments are made electronically directly to the landlord on behalf of the tenant, and the tenancy agreement is between the HAP recipient and the private landlord. The Housing (Miscellaneous Provisions) Act 2014 deems HAP to be an appropriate form of social housing support and the HAP recipient pays a differential rent to the Local Authority.

The first phase of the statutory pilot for the HAP scheme commenced in September 2014 and has been introduced incrementally to 13 local authority areas to date. Dublin City Council is also implementing the HAP pilot scheme for homeless households in the Dublin region on behalf of all four Dublin local authorities. There are now over 4,300 households being supported by HAP across the pilot local authority areas operating the scheme.

Affordable Rental is different to previous affordable housing schemes where the focus was on the purchase by individuals of the relevant housing units. The Government’s 2011 Housing Policy Statement announced that all affordable housing schemes were being stood down in the context of a full review of Part V of the Planning and Development Act 2000. A full independent review of the operation of Part V was completed, and a range of legislative changes were incorporated into the Urban Regeneration and Housing Act 2015, which was commenced on 1 September 2015.

The principal objectives of the 2015 amendments are to:

- maximise the opportunity for the delivery of social housing units;

- secure the principle of integrated mixed tenure developments;

- address weaknesses in aspects of the existing legislation identified in a number of court judgements; and

- enhance the economic viability of developments.

Section 31 of the Act of 2015 amends section 94 of the Planning and Development Act 2000 by changing to 10%, the percentage of land that must be provided for social and affordable housing in a housing development. With regard to the provision of affordable housing, local authorities have been advised by my Department that in the context of the current acute need, social housing should be the priority for local authorities in the first instance. Local authorities should seek agreement to fulfil Part V obligations in the form of the direct transfer of completed social housing units, where possible. Furthermore, where capital funding is available, local authorities should aim to enter Part V agreements for the acquisition of social housing units by the local authority, or an approved housing body.