Written answers

Friday, 16 September 2016

Department of Housing, Planning, Community and Local Government

Housing Assistance Payments

Photo of Richard Boyd BarrettRichard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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578. To ask the Minister for Housing, Planning, Community and Local Government if housing assistance payment tenancies will be extended to more than two years, which is a very short period of time and not in line with sustainable tenancies; the reason the payment is stopped to the landlord with no recourse if the tenant does not pay their portion of the rent; and if he will make a statement on the matter. [24793/16]

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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There is no limitation placed on the length of tenancy that can be supported by the Housing Assistance Payment ( HAP ). However, as with other private rental tenancies, the Residential Tenancies Act 2004 governs the relationship between landlord and tenant and the length of the tenancy is a matter that must be agreed between the landlord and tenant in that context. Under the HAP scheme, tenants supported by the scheme are expected to stay in their current tenancy for a minimum period of two years, unless there are exceptional reasons for moving tenancy. Such exceptional reasons, include moving for the purpose of employment, further education, family or health reasons. Since 1 January 2016, landlords who rent to tenants in receipt of social housing supports such as HAP may avail of increased tax relief. The scheme allows property owners to claim 100 per cent relief on their mortgage interest, as an expense against rental income. The purpose of this tax relief is to incentivise landlords to maintain tenancies with social housing tenants for longer periods. To qualify, the landlord must undertake to make the accommodation available to qualifying tenants for a minimum period of three years, and the undertaking must be registered with the Residential Tenancies Board.

HAP is a form of social housing support under which local authorities will make monthly payments on behalf of tenants directly to landlords in respect of rent, subject to the terms and conditions of the scheme. HAP tenants are required to sign a rent contribution agreement to pay a weekly rental contribution to the local authority in line with the local authority’s differential rent scheme. As set out in the rent contribution agreement, this weekly rental contribution must be paid by them so that they remain eligible for the HAP scheme. If this weekly rent contribution is not paid, HAP payments to the landlord can be stopped or suspended.

The HAP Shared Service Centre (SSC) manages the collection of all HAP tenants’ differential rents, on behalf of the relevant local authority, and the payment of all HAP rents to landlords on behalf of tenants supported by the HAP scheme. The HAP SSC applies a very clear communication policy when rental arrears issues arise. This policy includes regular and early written communication with tenants, landlords and the relevant local authority when a tenancy is being jeopardised by non-payment of rent. To date the approach used has been very effective with minimal levels of rent arrears arising for HAP tenants, and more than 13,000 tenancies currently being supported by the HAP scheme.

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