Jim O'Callaghan (Dublin Bay South, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

271. To ask the Minister for Housing, Planning, and Local Government the estimated cost of maintaining the HAP landlord payment guarantee to 2030. [40277/24]

Darragh O'Brien (Dublin Fingal, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

From 1 May 2023, when a HAP tenant defaults on their differential rent payment to the local authority they will be offered the option of a payment plan to assist them in maintaining their tenancy and allow the HAP payment to the landlord to continue. If the tenant defaults on payment of differential rent or the payment plan, under the Landlord Payment Guarantee, the HAP payment to the landlord will be guaranteed for a maximum 12-month period.

The Landlord Guarantee is activated when a tenant in arrears has not rectified their situation within three months. The HAP SSC will contact the landlord in month three to confirm that the tenant remains in the property. Once this confirmation is received this landlord will be paid monthly for up to nine months. The initial three months will be paid retrospectively at the end of the 12-month period, or earlier if the tenancy ends. After its first year in operation, at the end of April 2024, there were 116 tenancies active under the Landlord Guarantee, with these landlords having received a total of €484,191 in reinstated payments. In addition, €1,464,780 was held under the Landlord Guarantee at that time, either under the initial three- month suspension, or awaiting potential confirmation that the tenant was still residing in the property. In the event that the tenancy is not confirmed to be ongoing the cost is recouped to the Department after the 12-month period.

The Guarantee was initially approved for a 12-month period to end April 2024, which was extended earlier this year to end April 2025. The amount paid to landlords under the guarantee for the first 12 months of the scheme was approximately €484,000. The maximum potential cost of the scheme in that year was approximately €2 million. My Department does not hold the details requested and projections for future years will be agreed on an annual basis as part of the annual Estimates process.