COMHAIRLE CONTAE ÁTHA CLIATH THEAS
SOUTH DUBLIN COUNTY COUNCIL

MEETING OF TALLAGHT AREA COMMITTEE (1)

Monday, November 15, 2010

MOTION NO. 5

MOTION: Councillor M. Corr

Cathaoirleachs Business

That the Manager (housing) gives this committee an up to date report with respect to the legal situation of tenants occupying so called Oaklee units in the McUlliam estate, outlining the process, delays and prospects for tenants with serious grievances regarding the structure and maintenance of their homes.

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 confirmation was received from the DoEHLG advising that the Capital Loan and Subsidy approval of July 2007 has been withdrawn and the units were 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 had long and detailed discussions with Oaklee Housing Trust Ltd. and are in the process of discussing terms for the transfer of the 51 uits to their ownership.  Items such as rent, ASB and allocation  harmonisation with the Councils schemes are all part of these talks.  Agreement has now been reached and it is expected to bring a full report on the matter to the members next month.