Local Authority Scheme changes to unlock additional social homes
The Government have issued a directive to Local Authorities regarding the Repair and Lease Scheme, in order to unlock additional homes.
The Repair and Lease Scheme is a social housing delivery scheme that provides an interest free loan up to €80,000 per unit to owners of vacant properties, so that their properties can be brought up to rental standards.
There are multiple changes to RLS proposed, and these include:
- The removal of limits pertaining to the property owner. The current scheme limits applications for existing residential properties to owners who require capital funding. This was intended to exclude investment firms, but this proved difficult in practice and created an additional administrative burden for local authorities;
- Directing local authorities to prioritise the delivery of studio and one-bed units in line with a Programme for Government commitment relating to one bed units;
- The introduction of a payment for legal fees – permitting limited vouched payments which will assist local authorities / Approved Housing Bodies (AHBs) with related costs.
The aim of RLS is to offer a small solution for vacant properties like former pubs, over shop premises or unfinished buildings. The Government say that these types of projects are often too large or complex for owner occupiers.
In recent years, most of the properties delivered by the RLS have been one beds, and Local Authorities will continue to prioritise one beds and studios.
Minister for Housing, Local Government and Heritage, James Browne said: “The Repair and Lease Scheme is a targeted but effective intervention which has already created hundreds of new homes while simultaneously tackling the blight of dereliction at the heart of many of our towns and villages. The changes I am introducing today will help the scheme deliver even more homes.
“As I travel around the country, I see vacant properties – often pubs – just sitting idle and no longer a commercial premises for whatever reason. Locals rightly wonder why these are not being converted to homes or who is going to do something with them. I am determined that local authorities can step into the breach and the changes I am introducing today will help them to do so.
“The scheme is a win/win for everybody – tackling dereliction and creating new homes, particularly one bedroomed accommodation for which there is a great need.”