COMHAIRLE CONTAE ÁTHA CLIATH THEAS
SOUTH DUBLIN COUNTY COUNCIL
MEETING OF SOUTH DUBLIN COUNTY COUNCIL
Monday, December 14, 2009
HEADED ITEM NO. 10
VOLUNTARY HOUSING RENTS
REPORT:
Following a Motion at the September meeting it was agreed to bring back a report to the Council on the issue of Rents charged by Voluntary Housing Bodies which in some cases exceed the differential rent scheme of the Council and specifically the Oaklee Scheme at Fortunestown, Tallaght, Dublin 24 .
Approved housing bodies providing dwellings under the terms of the Capital Loan and Subsidy Scheme are responsible for determining the rent amounts to be paid by qualified tenants according to the following formula:
- the rent is calculated annually by reference to the tenants household income for the income tax year ending prior to the start of the loan subsidy year (1st July)
- the rent amount shall be not less than €6.35 per week for the first €102 or less of household income per week, plus €0.23 per week for each additional €1.27 of income over €102, with an abatement of €1.27 per week for each dependant child residing in the house subject to the rent not being less than €6.35 per week
- household income for the purpose of determining rents shall be the total income of the tenant and his/her spouse or of joint tenants as the case may be and, in addition, in the case of other persons residing in the house whose income is not included in household income, the weekly rent shall be increased by €0.23 for each €1.27 of such income in excess of €102, subject to the rent payable in respect of such person(s) being not more than €25.39 per week
- a 'dependant child' for the purposes of rent assessment means a person aged 18 years or under not in receipt of an income or a person under 23 who is attending a full time course of education
- the application of the rent formula may be modified, at the discretion of the approved housing body in particular respects where they consider it appropriate, subject to the overall rent yield being not less than what would be payable under the existing rent scheme.
The Council have no discretion in regard to the amount of rent charged under the Capital Loan and Subsidy Scheme and the Department of the Environment Heritage and Local Government have indicated that there are no plans to change this position.
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 DoEHLG 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 is being made to resolve this situation as quickly as possible.