Mattie McGrath (Tipperary, Independent)
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227. To ask the Minister for Housing, Planning, Community and Local Government the status of the operation of the repair and leasing scheme in County Tipperary; and if he will make a statement on the matter. [6832/17]

Simon Coveney (Cork South Central, Fine Gael)
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The Repair and Leasing Scheme (RLS) has been developed to assist private property owners and local authorities or Approved Housing Bodies (AHBs) to harness the accommodation potential that exists in certain vacant properties across Ireland. The scheme was launched in Waterford and Carlow in early October 2016 on a pilot basis and my Department is currently working with local authorities to prepare for the wider national rollout of the scheme.

The scheme is targeted at owners of vacant properties who cannot afford or access the funding needed to bring their properties up to the required 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 upfront by the local authority or an Approved Housing Body (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 for 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.

A scheme of this nature will require both significant capital and current exchequer investment expenditure over the next 5 years and therefore must be properly analysed and assessed to ensure the best use of public money. The purpose of the pilot is to ensure that the scheme is appropriately modelled from a financial perspective but also, and critically, that it is workable from local authorities’ and AHBs’ perspectives and delivers high quality social housing effectively.

My Department and the Housing Agency, who are assisting with implementation of the scheme, are in regular contact with the two pilot local authorities and I understand that the pilot is progressing well at a local level. In parallel, my Department is working with local authorities to prepare for the rollout of the scheme. This includes assisting with access to public sources of data relating to vacant property, as well as facilitating local cooperation between AHBs and LAs on how the scheme will operate on the ground for interested property owners.

Several AHBs are working together with the Waterford and Carlow local authorities to manage the scheme in those particular areas and, as the scheme becomes available nationally, I expect that more AHBs will become involved in the roll out of the scheme. 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.

Over the period 2016 to 2021, it is anticipated that up to 3,500 units will be secured for social housing under this scheme and I have committed to making €140m available over that period. While the current target for 2017 is 150 units, the interest expressed by property owners and stakeholders so far indicates that the 2017 targets will be achieved and could potentially be exceeded following national rollout. Taking account of this, the capacity of local authorities and AHBs to deliver under the scheme, as well as the necessary agreement on the financial considerations arising, I am exploring how delivery under the new scheme might be accelerated.

I would encourage any local authority that is eager to engage early with the scheme to liaise with the pilot local authorities and my Department, in order to be familiar with the requirements around participation and also the practical implementation issues that are being worked through with the pilot scheme.