Aengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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187. To ask the Minister for Housing, Planning, and Local Government the supports in place for a tenant in an affordable rent tenancy agreement with the LDA in the event they have a reduction of income or reach pension age and can no longer afford the rent; and if he will make a statement on the matter. [25934/24]

Darragh O'Brien (Dublin Fingal, Fianna Fail)
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Housing for All targets the delivery of 18,000 new Cost Rental homes in the period out to 2030. A strong pipeline is in place and under continuous development by Local Authorities, by Approved Housing Bodies using the Cost Rental Equity Loan (CREL), by the Land Development Agency, and now also by private providers under the Secure Tenancy Affordable Rental (STAR) scheme.

The core principle of Cost Rental is that the rents cover the development, management, and maintenance costs of the homes, so that the long-term future of the homes is financially secure, but that rents are not subject to the pressures of the profit-driven open market. Rents will increase only in line with general consumer inflation, remaining stable in real terms while continuing to cover ongoing costs. Cost Rental homes also come with the added advantage of long-term, secure tenancies regulated by the Affordable Housing Act 2021.

The nature of the Cost Rental model means that, unlike differential rents in social housing for low-income households, the rent is not set according to the income of the tenant. Cost Rental homes are advertised and made available at a certain rent level, which is needed to cover the costs of delivery and provision.

It is not intended for Cost Rental to overlap with or replace existing social housing supports for low-income households, which remain a priority for the Government. Cost Rental is instead designed primarily to assist middle-income households who do not qualify for social housing supports such as the Housing Assistance Payment (HAP), but who are facing affordability pressures in the private rental market. Cost Rental is a major step forward in providing much-needed affordable rental options to households with incomes above the household limits set for social housing.

Therefore, Section 34 of the Affordable Housing Act 2021 provides that the Housing Assistance Payment (HAP) cannot be paid for a Cost Rental tenancy, at least initially, in line with this policy aim that rent payments cover costs without additional State supports. However, in recognition of the potential unforeseen changes in household circumstances that can occur during the lifetime of a tenancy, this restriction on HAP for Cost Rental tenancies is removed after the tenancy has lasted for more than six months.

It is important to note that the grant of HAP for a Cost Rental home is no different from the process that must be followed in any other tenancy. Receipt of HAP is dependent upon someone first being assessed as eligible for social housing support. Assessment for social housing is conducted by Local Authorities, and qualification is dependent on both eligibility (primarily net household income) and also assessed housing need.