Written answers

Thursday, 6 April 2017

Department of Housing, Planning, Community and Local Government

Repair and Leasing Scheme

Photo of Barry CowenBarry Cowen (Offaly, Fianna Fail)
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49. To ask the Minister for Housing, Planning, Community and Local Government if approval will be provided to owners of vacant properties for refurbishment scheme to apply directly to local authorities rather than AHBs to avail of the scheme; and if he will make a statement on the matter. [17120/17]

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 up-front 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. 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 account the extent of repairs that may be required.

Depending on the manner in which a local authority elects to operate the scheme in their administrative area, property owners may apply directly to their local authority in respect of the scheme or to a participating AHB.  Properties must be vacant for at least one year, and property owners and contractors engaged under the scheme must demonstrate that they are tax compliant through the provision of tax clearance certificates on request. Local authorities retain overall responsibility for ensuring that housing units brought into use under the scheme are required and fulfil social housing demand in their areas, and will have full nomination rights for units delivered through AHB led mechanisms.

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