COMHAIRLE CONTAE ÁTHA CLIATH THEAS
SOUTH DUBLIN COUNTY COUNCIL
MEETING OF TALLAGHT AREA COMMITTEE (1)
Monday, September 21, 2009
HEADED ITEM NO.3
HEADED ITEM: T. AC Meeting Administrator
Leasing of Unsold Affordable Units for Social Housing Use.
REPLY:
Medium term use of unsold affordable homes for social housing in the County.
The Council has identified 103 homes which it purchased for onward sale under the Affordable Homes initiative but which, despite its best efforts, it has been unable to sell mainly because of the collapse in the housing market.
The homes involved have been vacant for a period of time and the cost of servicing the bridging loans drawn down by the Council and of securing the properties is a heavy fiscal burden on Council funds at a time when the onus is on minimising waste and maximising Council resources.
The Department of Environment, Heritage and Local Government made provision of 20m euro nationally this year to fund the leasing of vacant homes for social housing purposes and have now agreed to make funds available from this programme which the Council is about to draw down to cover the full loan costs on these homes and has approved an application from the Council to utilise these homes as social homes provided that an attempt is made after 5 years to sell them as Affordable units.
The Council adopted a novel approach to this programme in that it wrote to the next applicants on the Council waiting list for the property types in the particular locations involved inviting expressions of interest and offering them a 5 year tenancy of the new properties and the option to purchase the properties at the 2009 cost price to the Council at any time within the 5 year tenancy. It was also pointed out that there may well be discounts available off the frozen price depending on the regime used to sell the units.
To date more than seventy applicants have taken the offer and the properties are in the process of being allocated.
It has been made clear to them that if they are not in a position to buy the units at the end of 5 years they will be offered for sale to other parties and they must agree to move to alternative homes to facilitate the sale. The Council for its part has agreed to provide suitable alternative homes as close as possible to the units being let to them and is guaranteeing not to require them to move until such alternative, suitable accommodation has been sourced.
If the Council is unable to sell the homes to alternative purchasers a new 5 year tenancy will be granted to the tenant. The exercise will be repeated after a further 5 years and, at that stage, if the sitting tenant or an alternative purchaser is not found the home will be taken permanently into social housing stock.
In exercising this novel “rent to buy” social housing model the Council—consistent with its policy of promoting social integration through carefully managed tenure mix-- has taken care to ensure that it does not overload any development with social housing.
One of the conditions laid down by the Department of the Environment, Heritage and Local Government on the Council is that the management and maintenance of these homes be contracted out to a Voluntary Housing Body.
After a limited tender procurement the Council has selected Helm Housing to manage the homes. They will take 100% Council nominees as tenants, will mirror the Council’s management, maintenance and ASB regimes and will charge the 10% differential rent that the Council charges and will retain the differential rents as their fee. They have also agreed to use only fully qualified and certified tradesmen and craftsmen who are tax compliant and pay the recognised trade rates to maintain the properties.
The necessary statutory report seeking Council approval to the terms and conditions of the engagement of Helm will be brought to the October Council meeting. Helm will make a presentation to that meeting.