COMHAIRLE CONTAE ÁTHA CLIATH THEAS
SOUTH DUBLIN COUNTY COUNCIL

MEETING OF SOUTH DUBLIN COUNTY COUNCIL

Monday, May 14, 2012

HEADED ITEM NO 7 (c).

To Each Member of South Dublin County Council

Proposed Disposal of 51 housing units at Fortunestown Lane, Tallaght, to Oaklee Housing Trust Ltd. 36/39 James Street, Dublin 8.

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.

Accordingly, the Council entered into protracted detailed discussions with Oaklee Housing Trust Ltd. in regard to the future of the 51 units and particularly their position in terms of the management, maintenance and tenancy,  and have reached agreement with them to transfer the units to their ownership under a 99 Year Lease Agreement subject to a number of conditions. The main terms are as follows:

The 51 Units at Fortunestown Lane shown on the attached map be transferred to Oaklee Housing Trust by way of a lease for 99 years.

 The individual units shall be used for Social Housing Purposes and let to nominees from the South Dublin County Councils Housing List:  

Oaklee Housing Trust will receive nominations from the Council for vacancies and/or will also participate in the Council’s Choice Based Lettings Scheme and will inform the Council of any voids for advertising under the Scheme

Oaklee Housing Trust Ltd. will ensure that their rent for the units will converge with the Council’s differential rent scheme by 2015

Oaklee Housing Trust Ltd. to participate fully in all estate management actions and to work with SDCC on a partnership basis in relation to anti social behaviour in the area, specifically in relation to the 51 units in the area which are the subject of this proposal to Oaklee Housing Trust.

A nominal rent of €500 per annum while the premises are used for the permitted use, otherwise full market rent to apply

Provision to be included for a rent review every 5 years

Oaklee Housing Trust Ltd. to be responsible for all outgoings, including all rates, taxes and charges (including emergency services charges) of any description which may be payable at any time during the term of the lease in respect of the demised premises

Units to be used only for Social housing purposes only

Oaklee to insure the property for the sum equal to its reinstatement cost and shall indemnify SDCC in the sum of €9.4m against all claims for injury or damage to any person or property through the use of the premises in question

At all times, during the term to comply with all recommendations or requirements of the appropriate authority in relation to fire regulations and to indemnify SDCC against any costs or expenses in complying with any such requirement or recommendation

Oaklee Housing Trust shall not cause the premises to become a nuisance.

To pay the Council all costs, charges and expenses which may be incurred by the Council in abating a nuisance in respect of the demised premises and to comply with any Notice served on Oaklee Housing Trust by a local or public authority in respect of the demised premises.

The Council is retaining a right of way over the property to be disposed to Oaklee Housing Trust to enable an emergency exit from the community facility on the ground floor.

The benefits accruing to the Council from the letting are

The transfer of the housing units to Oaklee Housing Trust will be benefit to the Council by regularising the existing tenant and landlord arrangement which have been by way of licence to date.  This will permit them to deal with Estate Management and Anti Social Behaviour in a timely manner. 

It will allow investment in the units by Oaklee.

It will also by 2015 ensure the rent paid by the tenants is harmonized with the Councils Differential Rent Scheme. 

Oaklee Housing Trust has agreed to participate in the Choice Based Letting arrangements and this will reduce the void time for units.

Accordingly, the consent of the Council is sought to the disposal of 51 housing units at Fortunestown Lane, Tallaght, to Oaklee Housing Trust Ltd., subject to the provision of Section 183 of the Local Government Act 2001 and in accordance with Section 211 of the Planning and Development Act 2000.

I recommend the properties referred to in the foregoing report, as outlined on the attached map, be disposed of to Oaklee Housing Trust Ltd. With its registered office at 36/39 James Street, Dublin 8.

______________________________

County Manager.