Written answers

Tuesday, 4 April 2017

Department of Housing, Planning, Community and Local Government

Repair and Leasing Scheme

Photo of John BrassilJohn Brassil (Kerry, Fianna Fail)
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328. To ask the Minister for Housing, Planning, Community and Local Government if a landlord who avails of the repair and lease scheme can also avail of the home renovation incentive when carrying out the refurbishment works on a rental property; and if he will make a statement on the matter. [16572/17]

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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The Repair and Leasing Scheme (RLS) has been developed under Pillar 5 of Rebuilding Ireland 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 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 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 period 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. The scope and cost of the works required, and the recoupment of the works cost through the lease payments, will be agreed between the property owner and the local authority or AHB. The maximum cost of repairs allowable under the scheme is €40,000.

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; the local authority or AHB will be the landlord and will have on-going management and maintenance responsibilities in respect of the properties.

Property owners availing of the Repair and Lease scheme may qualify for other schemes such as the Home Renovation Incentive or the Better Energy Homes scheme for the works done to bring their properties to the required standard. In this regard it is important to note that the capital advance for payment of the repairs works is not a grant payment and will be fully repaid by the property owner through the offset arrangements agreed under the lease for the property. While local authorities and AHBs may be in a position to provide information in relation to other funding opportunities, it is the responsibility of the property owner to consider the requirements of any such scheme and apply for same. In making any such application, the property owner should advise the relevant scheme administrator of their participation in the Repair and Leasing Scheme.

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