That the manager outline what precisely is causing the delay in the handing over of the legal title to residential units to the Oaklee Housing Association in the McUlliam Estate - that he notes that Oaklee are not currently in a position to require tenancy agreements for their tenants and this may cause significant legal issues going forward, that he gives a commitment to resolve this situation before Christmas.

REPORT:

An application for funding under the Capital Loan and Subsidy Scheme was submitted to the Department of Environment Heritage and Local Government in August 2006 for 51 units at Fortunestown. Approval was received from the DOELG in the amount of €9,312,590 in July 2007 under the Capital Loan and Subsidy Scheme.  At the Council meeting of 9th July 2007 a loan in the sum of €9,312,590 was approved to Oaklee Housing Trust Ltd. The Council meeting of 10th September 2007 approved the disposal of the 51 units to Oaklee Housing Trust Ltd.

In August 2007 the units were completed and ready for occupation and were handed over to the Council by the Contractor.  It was necessary for security to be put in place immediately by the Council. In the meantime, the necessary legal work involved in the disposal of the units to Oaklee Housing Trust Ltd., and the putting in place of the mortgage under the Capital Loan and Subsidy Scheme had commenced.  These legal issues were protracted and further complicated by the fact that 42 units were in one block and the remaining 9 units were located separately, over the communal facility, which was not being disposed of to Oaklee Housing Trust Ltd. As the members are aware these legal issues continued on well into 2008, which resulted in considerable security costs to the Council and also delays for housing applicants who were to be accommodated in the units.  In order to alleviate this situation it was agreed that Oaklee Housing Trust Ltd. would take over the units in question by way of Licence in July 2008, pending the completion of the necessary legal work to put in place the required mortgage.

During this time payment commitments to the Contractor had to be fulfilled and this was done from the Councils Social Housing Investment Programme, the intention being that this funding would be recouped from the Capital Loan and Subsidy Scheme on completion of the mortgage. The Council had been in discussions with the DoEHLG on this matter and it was our understanding that this transfer would be acceptable to them. However, the DoEHLG would not agree to the arrangement and the matter has been subject of considerable negotiations over the past year. Confirmation has recently been received from the DoEHLG advising that the Capital Loan and Subsidy approval of July 2007 has been withdrawn and the units are now being treated as social housing funded from the Council's Social Housing Investment Programme allocation for 2008.

The Council is aware of the predicament in which this leaves Oaklee Housing Trust Ltd. and their tenants, and indeed the implications of this with regard to the issuing of tenancy agreements and good estate management. We have been in touch with Oaklee Housing Trust Ltd. and informed them of this situation. We have also requested a further meeting with the DoEHLG in an effort to see if there is any possibility of them reviewing their decision in this case. Depending on the outcome of this meeting the matter will be further discussed with Oaklee Housing Trust Ltd. Every effort will be made to resolve the situation as quickly as possible and the members of the Tallaght Area Committee will be kept informed of developments.