COMHAIRLE CONTAE ÁTHA CLIATH THEAS
SOUTH DUBLIN COUNTY COUNCIL
MEETING OF SOUTH DUBLIN COUNTY COUNCIL
Monday, June 14, 2010
HEADED ITEM NO.19
PROPOSED AGREEMENT BETWEEN SOUTH DUBLIN COUNTY COUNCIL AND CLANMIL HOUSING ASSOCIATION LTD. FOR THE MANAGEMENT & MAINTENANCE OF 24 COUNCIL OWNED UNSOLD AFFORDABLE PROPERTIES WHICH HAVE BEEN ASSIGNED TO SOCIAL USE
REPLY:
REPORT IN ACCORDANCE WITH SECTION 6( 8 ) 0F THE HOUSING (MISCELLANEOUS PROVISIONS ) ACT ,1992
Proposed Agreement between South Dublin County Council and the Clanmil Housing Association Ltd. for the Management & Maintenance of 24 Council owned Unsold Affordable Properties which have been assigned to Social Use
The Council has identified the final 24 unsold affordable homes for transfer to temporary social use for persons on the Council's housing list. Despite best efforts, it was unable to secure the sale of these homes to affordable purchasers due to the collapse of the housing market and the current economic conditions.
In the interest of rationalising the portfolios of properties managed by the Voluntary Housing Bodies, it is now proposed to include 4 homes at Millrace, Saggart in the contract for Management and Maintenance by Clanmil. These homes were approved by the Council last October for management and maintennce by HELM. They were expected to come into Council stock in October 2009 but were not actually completed until April 2010. HELM is being charged with the responsibility to mangage and maintain 4 alternative properties at Chaplains Court, Clondalkin; Castlegate, Adamstown; Suncroft, Tallaght and Broadfield Hall, Tallaght where they already have responsibility for managing and maintaining homes.
This proposal is strictly in accordance with the terms of circular letter Circular Letter AHS 1 2009 Measures to deal with Unsold Affordable Homes and Related Issues which was detailed in report to the Council in October 2009 LINK .
In formulating the proposal to put these homes to temporary social use, all options as set out in the Circular for selling the homes were investigated and considered. Following detailed review and careful consideration and in view of the cost of servicing the loans for the unsold properties and having particular regard to the current pressures on our finances, it was decided to put these homes to temporary social use.
The homes identified by the Council for the proposed leasing have been vacant for a period of time. In addition the cost of servicing the bridging loans drawn down by the Council and of securing the properties is a burden on Council funds at a time when the onus is on minimising waste and maximising Council resources. The annual cost of the loans to the Council on the 24 identified homes is approximately €80,000 per annum at current revised interest rates.
The Department of Environment, Heritage and Local Government made provision of €25M nationally this year to fund the leasing of vacant homes for social housing purposes in accordance with the above Circular 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 five (5) years to sell them as Affordable Units.
The Council, in preparation for approval to our submission, is in the process of writing 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 scheme used to sell the units.
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 sitting 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 “rent to buy” social housing model the Council, consistent with its policy of promoting social integration through carefully managed tenure mix, has ensured that it does not overload any development with social housing.
The schedule of units now identified for tempory transfer to social housing and approved by the Department of the Environment, Heritage and Local Government is as follows:
| Citywest Plaza, Citywest | Citywest Plaza | Apartment | 2 bed | Clanmil |
| Citywest Plaza | Apartment | 1 bed | Clanmil | |
| Citywest Plaza | Apartment | 2 bed | Clanmil | |
| Citywest Plaza | Apartment | 2 bed | Clanmil | |
| Millrace,Saggart | Millrace Ave | Apartment | 2 bed | Clanmil(previously HELM) |
| Mllrace View | Apartment | 2 bed | Clanmil(previously HELM) | |
| Millrace Drive | Apartment | 2 bed | Clanmil(previously HELM) | |
| Millrace View | Apartment | 2 bed | Clanmil(previously HELM) | |
| Blackthorn Hill, Rathcoole | The Close | Apartment | 1bed | Clanmil |
| Newcastle | Lyons Avenue South | House | 3 bed | Clanmil |
| Slade Castle,Saggart | Slade Castle Walk | Apartment | 2 bed | Clanmil |
| Slade Castle Court | Apartment | 2 bed | Clanmil | |
| Slade Castle Lane | Apartment | 2 bed | Clanmil | |
| Slade Castle Court | Apartment | 2 bed | Clanmil | |
| Airpark House,Rathfarnham | Airpark House | Apartment | 2 bed | Clanmil |
| Airpark House | Apartment | 2 bed | Clanmil | |
| Airpark House | Apartment | 2 bed | Clanmil | |
| Airpark House | Apartment | 2 bed | Clanmil | |
| Airpark House | Apartment | 2 bed | Clanmil | |
| Airpark House | Apartment | 2 bed | Clanmil | |
| Airpark House | Apartment | 2 bed | Clanmil | |
| St. Edmund's,Palmerstown | Juliet Square | Apartment | 2 bed | Clanmil |
| Juliet Square | Apartment | 2 bed | Clanmil | |
| Juliet Square | Apartment | 2 bed | Clanmil | |
| Broadfield Hall,Tallaght | Broadfield Hall | Apartment | 1 bed | HELM |
| Castlegate,Adamstown | Castlegate Dene | Duplex | 3 bed | HELM |
| Suncroft,Tallaght | Suncroft Park | House | 3 bed | HELM |
| Chaplains Court,Rowlagh | Chaplains Court | Duplex | 3 bed | HELM |
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.
In accordance with Circular letter Circular N3/09 from the Department of the Environment Heritage and Local Government on leasing of vacant private housing units in the County as one of the mechanisms to meet the Housing need, the Council placed an advertisement in the national press seeking expressions of interest for the Council to explore. This was followed up by a further advertisement by the Department of the Environment, Heritage and Local Government on behalf of all local authorities. In response, five (5) Voluntary Housing Bodies contacted the Council and expressed an interest in delivering or managing the leased homes. The Council carried out a further tender process, limited to the 5 Voluntary Housing Bodies who had expressed interest.
This tender procurement is considered adequate for the Council in the selection of Voluntary Housing Associations for the purpose of the management and maintenance of social homes. It is proposed that Clanmil Housing Association be approved to manage up to 100 social homes which will be procured over the coming year by way of the leasing initiative. The first 24 of these homes are listed as per the schedule above. Clanmill will take 100% Council nominees as tenants, will mirror the Council’s management, maintenance and anti-social regimes and will charge rent in accordance with the Council's differential rent scheme and will retain this differential rent as their only 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 proposal has been approved by the Department of the Environment, Heritage and Local Government.
The four homes listed at the end on the above schedule will be managed and maintained by HELM.
Clanmil Housing Association has demonstrated both experience and the dynamic, innovative attitude required to deliver excellence in tenancy management and property maintenance. Its work is guided by the principle of public, voluntary and private sector partnerships on a not-for-profit basis. The organisation's primary motivation is to assist Councils in providing safe, quality housing at best value and to offer choice to tenants whilst helping to build mixed, sustainable communities. It also has a track record working with other housing authorities in the state.
Clanmil Housing Association has approved status under Section 5 of the Housing Act 1988 for the purposes of Section 6 of the Housing (Miscellaneous Provisions) Act, 1992 i.e. to provide and manage voluntary and social housing. Clanmil is well established in the Republic and has approved status for Voluntary Housing. It is registered with the DoEHLG, has charitable status and is a member of the Irish Council for Social Housing.
Agreement to the terms and conditions for the engagement of a Voluntary Housing Body to manage and maintain Council owned housing stock is a reserved function as set out in Section 6(8) of the Housing (Miscellaneous Provisions) Act 1992.
Accordingly it is hereby recommended that the Council agrees to the engagement of Clanmil Housing Association to manage and maintain up to 100 social homes, the first 24 of which are set out in the schedule above and HELM Housing Association to manage & maintain the last 4 homes in the above schedule and which have been assigned to Social Use as set out in the foregoing report.