Written answers

Thursday, 3 November 2016

Department of Housing, Planning, Community and Local Government

Repair and Leasing Scheme

Photo of Peter FitzpatrickPeter Fitzpatrick (Louth, Fine Gael)
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73. To ask the Minister for Housing, Planning, Community and Local Government the expected timeframe for the introduction of the repair and lease scheme in County Louth as outlined in budget 2017; and if he will make a statement on the matter. [33065/16]

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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Rebuilding Ireland: Action Plan for Housing and Homelessnessrecognises the important source of potential accommodation vacant private properties present. A new Repair and Leasing Scheme (RLS) has been developed to assist private property owners and local authorities or Approved Housing Bodies (AHBs) to harness this potential, and bring these vacant houses into social housing use to provide homes for families on local authority waiting lists.

The new scheme was launched in Waterford and Carlow on a pilot basis in October, and depending on the take-up from private property owners, will be rolled out to further local authorities early in 2017. The purpose of the pilot is to ensure that the scheme is workable from local authorities’ and AHBs’ perspectives. It is anticipated that other local authorities will come into the scheme on a rolling basis, with full roll-out expected within 6 months. My Department is engaging with individual local authorities , including Louth County Council, in order to arrange a schedule for the roll-out of the new scheme nationally.

AHBs have a proven record in managing the refurbishment of properties and being good landlords puts them in an excellent position to play a key role in the success of the scheme. Several AHBs will be working together with Waterford and Carlow local authorities to manage the scheme in those particular areas. As the scheme is rolled out in other local authority areas, more AHBs around the country will become involved with local authorities in the delivery of the scheme.

The scheme is targeted at owners of vacant properties who cannot afford or access the funding required to bring them up to the standard for rental property. Subject to the suitability of the property for social housing, and the agreement of the property owner, the cost of the necessary repairs will be met up-front by the local authority or the AHB. This allows for the property owner to sign-up to a lease arrangement for a length that is linked to the value of the repairs, subject to a minimum of 10 years. The value of the repairs will then be offset incrementally against the agreed rental payment over a defined period within the lease.

A property owner can either choose to arrange a contractor to carry out the repairs themselves, or the local authority or AHB can arrange this instead. Property owners will not be required to take on landlord responsibilities and the local authority or AHB will have on-going management and maintenance responsibilities in respect of the properties.

The local authority will determine the eligibility for the scheme having regard to the location and the suitability of the property for social housing and also taking into consideration the extent of the repairs that may be required. The maximum costs of repairs allowable under this initiative will be €40,000.

Early estimates are that at least 150 units will be secured in 2017 and up to 3,500 properties will be targeted over the next five years. I have provided €6 million in capital funding in 2017 for the cost of the repairs, and €140 million over the lifetime of the Rebuilding IrelandAction Plan.

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