HOME PURCHASE SCHEME:TENANTS RENTING local authority apartments are to be offered a chance to purchase the properties under new legislation announced by the Minister for the Environment John Gormley.
Under the scheme, local authorities are to be given power to designate suitable apartment complexes that can be sold to tenants provided there is sufficient support from residents.
If the scheme is accepted by the tenants, the local authority would transfer ownership of the apartment complex to a management company, which it would establish.
The management company would then lease the apartments back to the authority and tenants would continue paying rent until they had paid off the purchase price.
Tenant purchase schemes have been a feature of the Irish housing system since the 1930s, with the first national scheme being introduced in 1973.
The current scheme began in 1995. However, this is the first time that the sale of local authority apartments is being permitted.
Mr Gormley said that tenant purchase schemes have had a very positive impact on social housing in Ireland over the years.
“It has offered lower income households the opportunity to put down long term roots in their areas, creating sustainable communities, and social stability,” he said.
“I want now to extend the scope of the scheme and to offer tenants living in local authority apartments similar home-ownership opportunities to those that are enjoyed by tenants in local authority houses,” Mr Gormley said.
Under the scheme, the authority would have first refusal on buying back the property from any tenant who decides to sell while still repaying the cost of buying the apartment.
If the authority declines the option, tenants may sell apartments on the market, but would be expected to pay the authority the outstanding charge on their home.
The legislation is to be introduced as an amendment to the Housing Bill (Miscellaneous Provisions) 2008, to be introduced at Dáil committee stage next Tuesday, June 9th.
