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Repair and Leasing Scheme

Expressions of interest are sought from owners of vacant houses for the Repair and Leasing Scheme.

 

 1. What is the Repair and Leasing Scheme?

 2. NEW Repair and Leasing Pilot Scheme

 

What is the Repair and Leasing Scheme? 

 

The Repair and Lease Scheme, which targets the delivery of social housing and also ensures that existing housing stock is used to the maximum degree possible, aims to increase the supply of social housing by bringing vacant properties in need of refurbishment back into use. To help with the cost of carrying out the works required to refurbish a home, a local authority or Approved Housing Body (AHB) can initially pay for the necessary works (as agreed). As a condition of accessing this funding the owner commits to the newly refurbished home being made available for social housing for an agreed term. The money the local authority or AHB put toward the refurbishment works is repaid by applying an additional discount on the rent paid to the owner. The full nominal value of the capital works must be repaid in full by the landlord within the term of the agreement via a reduced rent.

 

The scheme is targeted at owners who cannot afford the cost of the works required to bring a property that has been vacant for at least one year up to a lettable condition. Subject to the housing authority deeming a property suitable for social housing, and the agreement of the property owner, the cost of the necessary repairs will be met upfront by the local authority or an AHB. Ideally units considered under Repair and Lease Scheme will require a low level of investment to bring them to the required standard for renting. The majority of works will involve items such as new flooring, low grade plumbing or heating works, energy efficiency upgrades; window and door upgrades or replacements; insulation and painting and decorating. It is not envisaged that any significant structural works will be required.

 

The property owner agrees to enter a lease with the housing authority or AHB for a length that is linked to the value of the repairs, subject to a minimum of 5 years. The housing authority pays the owners a proportion of agreed market rent for the duration of the agreement. Under a RAS type availability agreement, the property owner can receive up to 95% of market rent. For a longer-term leasing arrangement up to 80/85% of market rent can be paid.

 

The loan the owner used to fund the initial repairs to the property must be repaid over the term of the agreement. In addition to the discount on market rent (as above), the value of the works paid for by the local authority/AHB is recovered by reducing the rent over a defined period within the lease. This can include a rent-free period.

 

Requirements of the scheme

 

There are a number of requirements in relation to the scheme:

 

  • The property has to be vacant for at least 1 year.

  • There has to be a social housing demand for the property.

  • The property has to be assessed as being viable to provide accommodation, with some improvement works.

  • The Council will identify the works required to bring the dwelling to the required standard.

  • The Council (or Approved Housing Body (AHB)) will provide initial funding for the cost of the works. The maximum cost of repairs allowable under the Scheme is €60,000.

  • The property is leased to the Council (or AHB), who will manage and maintain the property during the lease period.

  • The minimum lease term is 5 years.

  • The lease payments are based on the current market rental rates in the property location, less 20% to cover vacant periods and administration/management.

  • Under a RAS type availability agreement, the property owner can receive up to 95% of market rent.

  • The cost of the improvement works will be recouped to the County Council (or AHB) via an offset on the lease payments over a period of time.

  • Properties in all areas will be considered, subject to social housing demand.

  

If you wish to submit an Expression of Interest, please complete the Application Form 

 

For further information check out these Frequently Asked Questions or e-mail [email protected]

 

 

NEW Repair and Leasing Pilot Scheme

 

The Repair and Leasing Scheme has been expanded, on a pilot basis only, and removes the requirement that a property owner must be unable to fund or access funding to bring vacant properties into compliance with the Housing (Standards for Rented Houses) Regulations 2019. This modification applies to certain categories of vacant properties only. These are:

  • vacant commercial properties
  • vacant units associated with a commercial property (e.g. over a shop)
  • vacant former institutional buildings and
  • unfinished developments where these have been vacant for a significant period of time.

This expansion is on a pilot basis. Approval must be granted by the Local Authority/DHLGH on or before the 17th June, 2023.

 

Requirements:

  • The local authority must be satisfied that all proposed units meet existing social housing need
  • The property must be vacant for more than one year:
    • for commercial units, applications must have been made to the local authority for commercial rate deductions under Section 31A of the Local Government Reform Act 2014; or
    • the criteria required for such an application must be met, i.e. that the property is unoccupied for the purpose of the execution of additions, alterations or repairs thereto or because the owner is bono fide unable to obtain a suitable tenant; or
    • where the above is not applicable, e.g. buildings exempted from commercial rates, local knowledge of long-term vacancy;
    • The property must be made available for social housing for 5 – 25 years and the final units comply with S.I. No. 137/2019 – Housing (Standards for Rented Houses) Regulations 2019 and any amending legislation
    • All parties engaged to carry out the works, either directly by local authorities, approved housing bodies (AHBs) or by property owners, must be tax compliant
    • Works are required to bring units up to minimum rental standards
    • Repair & Lease Scheme does not apply to new build units (with the exception of unfinished developments where the properties have been vacant for a significant period of time).
    • The property owner may apply for up to a maximum of €60,000 (including VAT) per unit. In such cases the full funding advanced must be recouped via an offset in the leased payment.

 

For further information and guidance email [email protected]