HOUSING OPTIONS

1
HOUSING OPTIONS

• Presentation to Community Voluntary Fora
• Springfort Hall
• 23/05/06
• Ger Cotter, Senior Executive Officer.

2
PRE - 1991

• Prior to 1991, the role of Housing Authorities
  could have been summarised as building, letting,
  managing and selling houses. Functional
  assistance by way of Housing Loans were also
  provided.
• However, since the publication in 1991 by
  Government of The Plan for Social Housing and
  its successor in May 1995 Social Housing The
  Way Ahead, Housing Authorities have had to look
  at more imaginative methods of responding to the
  needs of housing applicants in addition to the
  functions that were traditionally performed.

3
NEW INITIATIVES

• While Housing Authorities continue to provide
  housing under their Building Programme, new
  initiatives have been introduced and promoted
  such as
• Shared Ownership
• Low Cost Sites Scheme
• Improvement Works in lieu of direct housing
• Mortgage Allowance Scheme
• Provision of finance to facilitate and encourage
  the involvement of
• the Voluntary Sector in the construction of
  social housing
• Affordable Housing Molloy Initiative/Part V
  Developments
• These initiatives can now be employed to satisfy
  a persons housing need, and they have been
  expanded and enhanced within the Division.

4
DIRECT HOUSING PROVISION

• While each of the above options are now being
  provided by the Council, the provision of Social
  Housing to qualified applicants still remains one
  of the core Housing options.
• We now have systems in place whereby on receipt
  of a fully completed Housing Application,
  applicants will be assessed by Council Officials
  and notified of their most suitable option within
  4 weeks.
• In this way, applicants are aware of their
  options at an early date and we would hope to
  continue this trend in the future

5
Other Functions intended for Housing Authorities
in the coming years.

• The responsibility of Housing Authorities are
  set to expand even further in the coming years.
• The scale of private development in the Division
  continues to expand which, in turn, will lead to
  large numbers of both Affordable and Social
  Housing units being made available to the Council
  under Part V. This, in turn, brings a new level
  of responsibility on us to allocate these units
  in a timely fashion.
• Recent changes in the Regulations on
  Supplementary Welfare Allowance (Rent Allowance)
  has and will continue to have an impact on
  Housing Authorities.
• The continued development of our Estate
  Management Unit within the Division which, in
  turn, will work closely with the local
  Communities/Residents Associations in achieving
  and promoting social inclusion.

6

• Residential Tenancies Act 2004 This applies to
  the mainstream private rented sector. Local
  Authorities will be responsible for the
  enforcement of the legislation and the
  registration fee previously paid to Local
  Authorities is now to be paid centrally.
• Homeless An Integrated Strategy. The Northern
  Division adopted its Homeless Strategy in
  January 2004 and the aim is to achieve the
  Objectives of the Strategy by the end of 2006.

7
Affordable Housing

• The first thing to note is that there are two
  types of Affordable Housing.
• Affordable Housing (Molloy Initiative)
• Local Authority builds houses on their own land
  or acquires houses in existing private
  developments. Standard Income limits apply.
• Approved applicants for Local Authority Housing,
  tenants and tenant/purchasers of local authority
  dwellings and tenants for more than one year of
  Rental Subsidy Scheme housing surrendering their
  dwellings are exempt from the income test.
• Affordable Housing Introduced in the Planning
  Development Act 2000, under Part V The Council
  adopted a Housing Strategy which requires
  Builders/Developers who are applying for
  permission on zoned residential land to make
  available 20 of the land for social/affordable
  housing. This applies to all Planning
  Applications received after October 2001.
• Standard Income limits do not apply in this case.

8
An eligible person for consideration is defined
as someone Who is in need of accommodation and
whose income would not be adequate to meet the
payments on a mortgage for the purchase of a
house to meet his or her needs because the
payments would exceed 35 of that persons nett
income.Under Part V of the Act, a Local
Authority must establish a Scheme of Allocation
Priorities which determine the priority to be
accorded to eligible persons in the allocation
ofAffordable Housing. Cork County Council has
adopted this Scheme of Allocation Priorities.In
considering each application, we first assess
that the level of income is within the
guidelines we then apply the scheme of
priorities which is points based and finally we
must be satisfied on the applicants ability to
repay the loan.
9
How an Affordable House is purchased.

• By way of a mortgage provided by the Local
  Authority of up to 97 of
• the cost of the house.
• Loans are advanced over a 25 year term and
  cannot exceed 97 of the
• sale price. However, this term can be extended
  to 30 years where a Local
• Authority considers it to be warranted and
  provided that the loan term
• does not exceed the Borrowers working life.
• The amount of the loan to be provided in
  individual cases will be
• determined by the Local Authority having
  regard to the household
• circumstances, the capacity of the household
  to meet outgoings on the
• loan, etc. Normally, monthly outgoings on the
  loan should not exceed
• 35 of the nett income.
• A subsidy will be available to reduce the
  mortgage payments of
• purchasers with a household income (gross) of
  up to 28,000 in the
• preceding tax year.
• The one issue yet to be addressed by the
  Department is the Clawback
• provision on the Title Documents. It is hoped
  that agreement will be
• reached with the Lending Institutions in the
  near future in this regard.

10

• A household surrendering a house rented by a
  Local Authority or a Voluntary Housing Body,
  which does not qualify for the income related
  subsidy under the scheme, may be eligible for the
  existing longer standing mortgage allowance to
  reduce their mortgage payments in each of the
  first five years of the mortgage.
• Year 1 - 3,560
• Year 2 - 2,800
• Year 3 - 2,040
• Year 4 - 1,780
• Year 5 - 1,270
• Total - 11,450
• If a house purchased under this scheme is resold
  within 10 years, the percentage of the sale price
  discounted by the Local Authority would be
  payable to the Local Authority by the purchaser
  on the proceeds of the re-sale of the house. The
  amount payable shall be reduced by 10 in respect
  of each complete year after the 10 years during
  which the person who purchased the property has
  been in occupation as his or her normal place of
  residence.

11

• Standard Loan
• This loan was designed to facilitate persons in
  need of housing to purchase their own house. It
  is not normally available to persons who have
  previously purchased or built a house. Maximum
  loan is 185,000 or 95 of the value of the
  house. Term 30 years.
• In order to qualify, you must have a Letter of
  Refusal from a Bank and Building Society.
• Eligibility
• For a single earner, income must be under 40,000
  in preceding tax year. For two earners, 2.5
  times the principal earner, plus one times the
  subsidiary earner must not exceed 100,000.
• Applicant must be in need of housing and must
  occupy proposed property, acquired with the aid
  of a Council loan, as their normal place of
  residence.
• Current Interest Rate 3.50 variable, plus .598
  for Mortgage Protection. 4.45 Fixed for
  Affordable Housing and Standard Loan.

12
Serviced Housing Sites

• Local Authorities may provide housing sites at
  low cost to assist persons in housing need (i.e.
  eligible 1st time buyers) to provide their own
  housing.
• Do I Qualify?
• If you are
• In need of housing and income satisfies the
  standard income test or
• A person whose application for the Local
  Authority Housing has been approved by the Local
  Authority or
• A Local Authority tenant or tenant purchaser who
  wishes to buy a private house and to return your
  present house to the Local Authority or
• A tenant for more than one year of a house
  provided by a voluntary body under the Rental
  Subsidy Scheme who wishes to buy a private house
  and return your present house to the voluntary
  body.

13
What is the Cost of a Site?

• The cost of the site will depend on the purchase
  price of the lands, the site development costs,
  legal costs, etc., and allowing for any subsidy
  that may be recouped from the Department of the
  Environment, Heritage and Local Government.
• However, it should be noted that the Clawback
  provision also applies in the subsidised sites
  scheme and this provision is included by way of a
  Deed of Postponement on the Title Documents.
  This issue has caused some disquiet amongst
  Lending Institutions and the Department are
  hopeful of an early solution to this problem
  which will be suitable to all sides.

14
SHARED OWNERSHIP SCHEME
15
What Is Shared Ownership ?

• Shared Ownership is a system which facilitates
  access to full home ownership in two or more
  stages by persons who could not afford full
  ownership immediately.
• The applicant initially acquires a share
  (minimum 40) in a house and rents the remainder
  from the local authority, with an undertaking to
  acquire the remaining equity within a 25 year
  period.

16
Eligibility

• The following are eligible for consideration
  under
• the Shared Ownership System
• Tenants and tenant/purchasers of local authority
  houses who intend to return their houses to the
  authority on providing a private house for their
  own occupation under the system.
• Persons included by a local authority in its
  latest assessment of housing needs under Section
  9 of the Housing Act, 1988, or accepted for
  inclusion in the next such assessment.

17

• (c) Tenants of one years standing of houses
  provided by approved housing bodies under the
  Rental Subsidy Scheme who intend to return their
  houses to the housing body on providing a private
  house for their own occupation under the system.
• (d) Persons in need of housing whose household
  income in the preceding tax year, calculated in
  accordance with a formula, does not exceed
  100,000. Under the formula, income will be
  reckoned as follows-
• (A)
• In the case of a single income household, two and
  a half times the borrowers income in the
  preceding tax year
• (B)
• In the case of a two income household, two and a
  half times the income of the principal earner,
  plus once the other income.

18
Type Of House That May Be Purchased

• Under the Shared Ownership System, a new of
  existing house may be purchased or a new house
  built. It is the applicants choice, but the
  Local Authority must be satisfied that the house
  being acquired is reasonably priced and of
  suitable size and standard to cater for the
  applicants needs. An existing house must have
  hot and cold water systems, a fixed shower or
  bath and indoor toilet. If it is a new house,
  the requirements s to the construction standards,
  must be met.
• Applicants are advised to arrange their own
  independent survey to establish the structural
  condition of the premises. Examination of the
  premises by the Council in no way implies a
  guarantee to the applicant as to the structural
  condition of the premises.

19
How Does The Applicant Pay For His/Her Share?

• The applicants share in the ownership of the
  house will be paid for by-
• Deposit of at least 1,270
• A Mortgage

20
The Mortgage

• The applicants share in the house will normally
  be funded by way of a
• mortgage loan from the local authority but cash
  may be contributed if the
• applicant is in a position to do so.
• The applicants share in the house will normally
  be funded by way of a
• mortgage loan from the local authority but cash
  may be contributed if the
• applicant is in a position to do so.
• The Mortgage is for a 25 year Term at a variable
  interest rate currently
• 3.5.
• Mortgage Protection Insurance is added to the
  Mortgage Repayment at
• a rate of .598.
• The benefits of the Mortgage Protection Insurance
  are
• Life cover in respect of Mortgagee on the
  Mortgage aspect only.
• Long Term Illness Cover in respect of the
  Principal Earner.

21
The Rent

• Rent will be payable by the purchaser each
  year on the Original Rented Equity and will be
  calculated at 4.3 increasing by 4.5 (fixed) on
  1st July each year e.g
• Year 1 4.3
• Year 2 4.4935
• Year 3 4.6957
• Year 4 4.907
• The revised rent will apply for the year
  commencing on 1st July each year. In all cases,
  a minimum of 2.00 p.w. rent is payable,
  including those who qualify for subsidy.

22
Subsidy Towards Payment Of The Rent

• Households with a gross income not
• exceeding 28,000 in the preceding tax
• year will qualify for an annual subsidy
• towards the rent.

23
When And How Is The Remainder Of The House
Purchased

• A person occupying a house under the Shared
  Ownership
• System will have the right to buy out the Local
  Authoritys
• share of the ownership and acquire full ownership
  at any
• time.
• Alternatively, this may be done by purchasing
  from time to
• time, additional shares of the Authoritys
  equity. The
• amount and frequency of such purchases is a
  matter for
• determination by the Local Authority.

24

• The cost of purchasing an additional share
  will be initial capital balance sum updated to
  the date of purchase. Purchases of additional
  shares may be financed by raising a further
  mortgage loan or by cash payments.
• Applicants will be required to buy out the
  full ownership within a 25 year period. However,
  there is no requirement to repay all capital
  outstanding on the mortgage within the 25 year
  period. In fact, the occupier could buy out the
  remaining equity when the original mortgage is
  paid off.

25
Improvement Works Scheme in lieu of Local
Authority HousingNorth Cork
26
What does this Mean

• This Scheme was introduced under the plan for
  Social Housing in 1991.
• It allows a Local Authority to improve or extend
  privately owned accommodation occupied or
  intended to be occupied by an approved applicant
  for Housing.
• It also includes Council Houses in the case of
  overcrowding.

27
Who Qualifies

• A person whose application for Local Authority
  Housing has been approved by the Local Authority.
• A Local Authority Tenant/Tenant purchaser who
  intends to return their house to the authority
  and move to a privately owned house.
• Proper Title must be provided in all cases.

28
Advantages of the Scheme

• A particular advantage of this Scheme is that it
  enables those availing of it to remain in their
  existing houses and neighbourhoods and, at the
  same time, to enjoy good housing conditions much
  sooner than they might have expected.

29
Method of Payment

• Persons benefiting under the Scheme are required
  to pay a weekly or monthly charge relating to
  their means as a charge is placed on the
  property.
• The repayment period is 15 years calculated as
  follows-
• Differential Rent X Cost of Works
• 125,000
• The figure of 125,000 is the figure given
  by the Department as they say this is the average
  cost of providing a local authority house at
  present.

30
Mortgage Allowance SchemeNorth Cork
31
Who is Eligible

• A Local Authority tenant who wishes to buy or
  build a private house and to return their present
  house to the local authority.
• This also applies to a tenant in a Respond House.
• The house being returned must be in good
  condition and suitable for reletting and their
  rent account paid up-to-date.

32
Amount of Allowance

• For mortgages in excess of 38,100 created on or
  after 15th June, 2000, the amount of the
  allowance is 11,450, payable over 5 years as
  follows-
• Year
• 1 3,560
• 2 2,800
• 3 2,040
• 4 1,780
• 5 1,270

33
How the Allowance is Paid

• The Allowance will be paid by the Department of
  the Environment, on behalf of the person
  qualifying for it, to the lending agency, ie
  bank, building society, local authority, etc.
• The lending agency will calculate the borrowers
  monthly mortgage payment in the normal manner and
  then deduct the appropriate instalment of the
  mortgage allowance.

34
Tenant Purchase Scheme North Cork.
35
Who is Eligible

• A tenant of a Local Authority house for at least
  one year may apply to purchase.
• Houses not for sale include flats and one bedroom
  houses.
• Houses provided for and occupied by elederly
  persons.

36
Advantages of the Scheme

• Tenant Purchase Schemes have accounted for the
  high proportion of owner-occupied dwellings.
• It encourages better maintenance and improvement
  of individual dwellings which, in turn, enhances
  the general appearance of the estate.
• It reduces the maintenance and management burden
  on the Local Authority.
• It also makes the tenants partners in Society
  rather than dependants on Society.

37
What Discounts are Available

• Applicants will be allowed discount of 3 of the
  value of the house for each year of tenancy (up
  to a maximum of 10 years) for e.g. - 4 years
  tenancy 12 discount or 10 years tenancy 30
  discount.
• Also tenants get an additional discount of 3810.

38
How Financed

• The full purchase price will be payable to Cork
  County Council and the tenants will be
  responsible for raising the necessary finance by
  way of a loan or from their own resources.
• Tenants may also apply for a Council Loan to
  purchase the property.

39
DISABLED PERSONS GRANTS

40
Disabled Persons Grants

• Based on Medical Evidence
• Means Tested
• Occupational Therapists Report Required
• Contractors Quotation based on O.T.s
  recommendations

• All works to be wheelchair friendly
• Max. grant allowable 20,320.00
• New House Disabled Persons Grant max.
  allowable 12,700.

41
Works Considered

• Bedroom and Ensuite
• Bathroom adaptations
• Stairlift
• Widen door opes
• External ramps, handrails, etc.
• Contractors must be holders of C2 Card or Tax
  Clearance Certificate

42
ESSENTIAL REPAIRS GRANT

• Designed to assist elderly persons living alone
  or with another elderly person.
• Maximum grant allowable 9,530.00

43
Works Considered

• Contractors itemised quotation required.
• Contractor must hold current C2 Card or Tax
  Clearance Cert.

• Re-roofing/repairs
• Re-wiring
• Drylining
• Facia, soffit guttering
• Work to be sufficient to prolong the useful life
  of the house for the occupants.

44
HOUSE IMPROVEMENT LOANS
45
Who Qualifies

• The categories of persons eligible for Local
  Authority house purchase loans are also eligible
  for Local Authority Loans for the carrying out of
  necessary works to improve, repair or extend
  their existing houses.

46
Income Loan Details

• Maximum Loan is - 38,000 (secured loan)
• Minimum Loan is - 15,000 (unsecured)
• Income requirements are- a single income
  household gross earnings not to exceed 40,000
  and a double income household gross earnings not
  to exceed 100,000.
• Current interest rate is 3.5
• Loans are repayable over a 5, 7, 10 or 15 year
  period.

47
VOLUNTARY/SHELTERED HOUSING
48
Voluntary Housing

• Voluntary Housing Schemes are owned and managed
  by housing associations.
• A Housing Assoc. is a limited company whose aim
  is to
• provide housing for a certain category of
  people.
• Housing Associations are landlords and property
• developers whose work is charitable.
• Respond, Cluid, which are active nationwide
  provide
• estate type houses for Local Authority housing
  applicants
• Housing Assoc. which meet a local need, such as
  housing
• for the elderly. Mallow Sheltered Care for the
  Elderly or
• Charleville Care Ltd. are examples.

49

• Housing Associations have been established by
  organisations such as COPE and Cork Mental Health
  to cater for those with Special Needs and enable
  Sheltered/Independent living.
• Links between Voluntary Housing Associations and
  Local Authorities-FUNDING Voluntary Housing
  Schemes receive funding from the Department of
  the Environment. The Local Authority administers
  the funding of schemes.TENANTS Tenants are
  drawn mainly from the Councils housing list and
  from particular sectors in the community such as
  the elderly or people with disabilities.

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• TWO TYPES OF VOLUNTARY HOUSING SCHEME
• CAPITAL ASSISTANCE SCHEME
• LOAN AND SUBSIDY SCHEME

51
CAPITAL ASSISTANCE SCHEME

• GRANTS
• SITE 100 of purchase price, to a max. grant
  40,000 per Housing Unit.
• CONSTRUCTION 95, subject to a max. of 110,000
  per unit.
• 110,000 per unit for 1 or 2 persons
• 135,000 per unit for family type accommodation
• TENANTS
• 75 of tenancies allocated by housing association
  in consultation with Local Authority.
• RETURNING EMIGRANTS / SAFE HOME PROGRAMME
• Are eligible for this type of housing.
• GRANTS FOR ONGOING MAINTENANCE NONE
• Kilworth.
• Conna.
• COPE Foundation, Charleville and District
  Association for the Handicapped.
• Charleville Care Ltd.
• Saint Vincent de Paul

52
LOAN AND SUBSIDY SCHEME Family Type
Accommodation

• GRANTS
• SITE 100 of purchase price, max. grant
  40,000.
• CONSTRUCTION 100, subject to a maximum of
  135,000.
• TENANTS
• 75 of Tenants must be on Local Authority housing
  list.
• RETURNING EMIGRANTS
• Must be on Local Authority housing list or be
  endorsed by The SAFE HOME PROGRAMME.
• GRANT FOR ONGOING MAINTENANCE
• Annual maintenance and management subsidy.
• An example of this type of housing association is
  Respond or Cluid Estates in Mallow,
  Newtownshandrum and Kanturk.

53
Communal Facilities Grant

• This grant enables the Housing Associations to
  provide communal facilities for their tenants.
• Grant is 7,500
• All Funding to Voluntary Housing Associations are
  made on the basis that the Housing Association
  use the houses for the purpose for which they
  were intended for a period of thirty years.
  After that, the Housing Associations may use the
  houses as they see fit.
• In effect, it means that the Housing
  Associations, be they COPE Foundation, a
  Community Development Association, Cluid or
  Respond, gain a very valuable resource after the
  lapse of thirty years.