Written answers

Thursday, 1 December 2022

Department of Housing, Planning, and Local Government

Housing Policy

Photo of Bríd SmithBríd Smith (Dublin South Central, People Before Profit Alliance)
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87. To ask the Minister for Housing, Planning, and Local Government if he will issue a circular to all local authorities to ensure that they will buy homes if tenants are in receipt of notices to quit where the tenants would be eligible for social housing or cost-rental housing; and if he will make a statement on the matter. [59786/22]

Photo of Darragh O'BrienDarragh O'Brien (Dublin Fingal, Fianna Fail)
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Housing for All, is the Government’s plan to increase the supply of housing to an average of 33,000 per year over the next decade. This includes the delivery of 90,000 social homes by 2030. Housing for All is supported by an investment package of over €4bn per annum, through an overall combination of €12bn in direct Exchequer funding, €3.5bn in funding through the Land Development Agency and €5bn funding through the Housing Finance Agency.

Under Housing for All, the Government will deliver 47,600 new build social homes and 3,500 social homes through long-term leasing in the period 2022-2026. Our clear focus is to increase the stock of social housing through new build projects delivered by local authorities and Approved Housing Bodies (AHB) and, with this, to reduce the numbers of social homes delivered through acquisition programmes. However, acquisitions of second hand properties for social housing fall under a number of local authority and AHB acquisitions programmes.

On 19 January my Department issued a circular letter to local authorities advising that social housing acquisitions by local authorities and AHB CALF acquisitions in 2022 would be focused on a number of priority areas, as follows:

- One-bedroom units to deliver on Housing First and meet the short supply in this category;- Other properties that allow persons/families to exit homelessness; and- Specific housing required for/suitable for individuals with a disability or other particular priority needs.

Local authorities were also advised that limited acquisitions through the Capital Assistance Scheme will also be approved, subject to the available budget for specific vulnerable cohorts, such as housing for older people, accommodation for individuals and families who are homeless and for people with a disability.

On 20 April, a further circular letter issued to local authorities in relation to social housing acquisitions. The key purpose of this circular was to advise local authorities that I had reinstated the delegated sanction to local authorities in respect of social housing acquisitions which are:

(i)in one of the priority categories set out in the January circular letter;(ii)in line with acquisition cost guidelines; and(iii)can be completed during 2022.

In November, I wrote to all local authorities in relation to the delegated sanction given to local authorities to purchase homes where the tenant is at risk of homelessness. The purpose of this letter was to inform local authorities that the delegated sanction will continue for the whole duration of the emergency winter eviction ban and up to the end of the transition period in June 2023.

I have requested local authorities to be proactive in acquiring properties which can prevent homelessness, including properties where a notice of termination has been issued to the tenant. The delegated sanction will allow local authorities to respond more flexibility to secure acquisitions which support a household to exit or to prevent homelessness.

In relation to Cost Rental, the Government is committed to the development of this new sector in Ireland. Cost Rental provides a more affordable form of rental tenure for moderate income households, where the rent charged is set to cover only the cost of provision, financing, management and maintenance. Upfront capital funding is available to AHBs and local authorities to assist in the provision of Cost Rental homes. However, this is structured to deliver development of homes, with the associated property management structures required and subsequent economies of scale. The acquisition of individual homes and the calculation of management and maintenance costs for single dwellings would be incompatible with the Cost Rental model as set out in legislation, and would result in higher cost rents for the tenants of these homes that would be otherwise achievable.

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