Government urged to fully fund cost rental house purchases

Roscommon councillors have called on the Government and the Minister for Housing to fully fund the purchase of homes by local authorities under the cost rental scheme, arguing that the current funding model is not financially viable.

The issue was raised by Fianna Fáil councillor Paschal Fitzmaurice when he tabled a motion to that effect at a recent meeting.

His motion outlined that the cost rental scheme was available to local authorities at present to help individuals and families above the income threshold secure affordable rental accommodation, but unviable under its current terms and conditions.

“As you are aware, Roscommon County Council purchased 40 houses in Castlerea for social housing, and I looked at that to see what schemes could be put in place. As you know, there are social housing, which are for people who have an income of just €30,000 or a little bit higher for a family, and then there’s the issue of the affordable purchase scheme, which could be applied by the local authority,” said Cllr Fitzmaurice. “A cost rental scheme is for people whose income is above €30,000 and below about €60,000. But there are people who can’t qualify for social housing. But under that cost rental scheme, the local authority could provide housing for those people and these are people who have great difficulty in getting anywhere to rent a house.” He said that for a cost rental scheme, the government will only fund up to €150,000 in most urban areas, and in some rural areas, as they call smaller towns, they might only fund it up to €100,000.

Cllr Fitzmaurice said if it’s for a working family or somebody who was over that €30,000, the local authority is “on the hook for two thirds, approximately, of the money”.

“I think it’s unfair. I think it’s something that we need to highlight with the government,” he said.

His party colleague, Cllr Marty McDermott seconded the motion and said it’s something councillors are dealing with on a regular basis.

“We have to encourage our local authorities as much as possible to be availing of this this cost rental scheme for those people and if that requires the government to buy the houses out or to fully fund the houses, of course, it should be supported,” said Fianna Fáil councillor Sean Moylan. “James Brown’s department should be contacted, and we should put our case forthright to the department and to the minister himself any time we meet him. So, I completely support Cllr Fitzmaurice’s motion, and fair play to him for bringing it here today.”

Independent councillor Emer Kelly said it’s not fair that “we’re in or creating a society where we’re discouraging people to work.” “The council can only afford so much to put into the housing, and it’s unfair if social housing is 100% funded, and then the cost rental is only about 30 to 40% give or take, funded by the government,” said the Independent councillor. “It’s not fair really that people that are going out to work are not meeting the criteria for social housing, but then there’s only x amount of cost rental properties available in the county as well. I’d like to support Cllr Fitzmaurice’s motion.”

Independent councillor Tony Ward, also supporting the motion, said people make an application or look for affordable housing in a lot of cases, and find it’s not there.

“So, there is a huge concern that I would certainly have for people that I speak to on a regular basis in relation to making an application for a local authority house. I have to compliment the staff of Roscommon County Council and the director who do their best, but the system needs to be changed,” he said.

Independent councillor Micheál Frain said there was an anomaly there and agreed with Cllr Kelly about people being penalised for going back to work.

“I do think that the cohort of people that Cllr Fitzmaurice mentioned need to be looked at now because these are becoming the new poor that seem to fall between two stools at every opportunity,” he said.

Independent Ireland councillor Nigel Dineen said the rental scheme is a very positive concept, but it’s certainly not working the way it’s intended for local authorities.

“You look at a lot of people throughout this county, they are hard-working people, and they just can’t afford to buy a house and also, the way the rents are at the moment, they can’t afford the rents. So, I think really, we need to look at it,” said Cllr Dineen.

Fine Gael councillor Liam Callaghan said it was a difficult time for people, because if they try and get a mortgage, they need to have a certain amount of savings in their own name, and they equally have to have a certain income threshold to get a mortgage.

“They just don’t have enough money to afford a house, and they’re not considered for any rental or social housing,” said Cllr Callaghan, who said the government need to step up and meet the 100% obligation.

Cllr Laurence Fallon said that people are in a catch-22 situation that they’ll never get out of, because they’re paying rent of probably €18,000 a year.

“The cost rental scheme should be treated very closely with the social housing scheme, because all of them are in the never-never situation to get a house of their own. So that’s why I think it needs significant change,” said Cllr Fallon.

Fianna Fáil councillor Larry Brennan, also supported, as did Independent councillor Valerie Byrne, Cathaoirleach. Fine Gael councillor Domnick Connolly also supported the motion, as did Cllr Ruth Conboy.

“I do have some understanding of the rental scheme that is referred to, but I don’t think it’s been actively taken up in any of the county councils because it’s not attractive. The fact is that it’s a requirement on the council budget rather than an investment at national level, it needs to be totally overhauled,” said Independent councillor Tom Crosby. “I honestly don’t believe that of the last 10 ministers, any of them even built a henhouse. So, like, how could they understand?”

Cllr Valerie Duffy said hope must be given to people and families, so they can live their lives, with the security of a home.

“I think this motion goes so much towards that. So, I am happy to support the motion,” said the Fine Gael councillor.

Chris Flynn, Director of Services said that most local authorities are delivering cost rental via affordable housing bodies or the Land Development Agency.

“I’m aware of one other local authority that has done self-delivered cost rental on a small scheme. The reality of local authorities being able to commit and deliver directly cost rental is a risky proposition, and as everybody I think has mentioned here today, that model, as it currently stands, would need to be de-risked significantly to make it a viable option for a local authority to do direct delivery cost rental,” said Mr. Flynn.

*Published as part of the Local Democracy Reporting Scheme.