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Enhanced Long Term Social Housing Leasing Scheme
From Department of Housing, Local Government and Heritage
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The Enhanced Long Term Social Housing Leasing Scheme is one of a series of measures introduced under Pillar 2 of “Rebuilding Ireland: An Action Plan for Housing and Homelessness” aimed at private investment in order to deliver social housing at scale. The Scheme provides the opportunity for Local Authorities to lease from institutional developers and investors in a manner that achieves the best outcome for all parties.
The main features of the lease are:
- the lease term is 25 years
- the Local Authority (the lessee) pays up to 95% of an agreed market rent at commencement of the lease to the lessor (owner of property)
- rent is reviewed every 3 years, linked to the Harmonised Index of Consumer Prices (HICP)
- the Lessor is obliged to provide Management Services for the properties
- the relevant Local Authority is the landlord to the tenant and collects differential rent from them
- each proposal should include a minimum of 20 no. properties in any Local Authority area (that can be on multiple sites)
In order for submissions to be assessed under the scheme, proposers must –
- be corporate entity established under the Companies Act 2014
- submit declaration regarding solvency, not engaged in illegal activities etc.
- submit funders’ support letters in accordance with template wording
- complete and return all documentation outlined in the Call for Proposals document
- outline how it is proposed to maintain the properties for the duration of the lease
- properties proposed must meet all statutory requirements and the Housing (Standards for Rented Houses) Regulations 2017 (S.I. 174/2017) – proposals without planning permission will not be considered.
- properties must be furnished
The current Call for Proposals is open until 25th October 2018. The full details and terms of the scheme are set out in the Call for Proposals document.
All proposals will be assessed by the Housing Agency, in conjunction with the relevant Local Authority, in order to establish whether the site is suitable for social housing, whether the specific proposal meets the housing need in the area and whether the proposed rents are in line with open market rents. Where there is a dispute over the relevant open market rent, proposals can be referred to an independent valuer for determination. The full details of the scheme and marking criteria, including financial and funding pre-requisites, are set out in the Call for Proposals document.
