Expressions of interest sought for long - term leasing arrangements.pdf (size 20.5 KB)
Proposal Brief for Leasing Arrangements
The Department of Environment, Heritage and Local Government has established a new leasing initiative for the delivery of social housing.
This new initiative represents an expansion of the options for the delivering of social housing. Local Authorities have been requested by the Department of the Environment Heritage and Local Government (DoEHLG) to consider proposals from properties owners in line with this new initiative.
Submissions are now being sought by Local Authorities from properties owners for the provision of suitable houses/apartments for occupation by its social housing applicants. Submissions will only be considered from owners who can provide a minimum of 5 properties. Local Authorities will enter into lease agreements with property owners for a period of between 10 and 20 years, with the terms and condition of each lease to be agreed.
Initial expressions of interest can now be made to Local Authorities and should provide the following information:-
· Location and address of the properties.
· Type (House/Duplex/Apartments etc).
· Size of property.
· Number of rooms.
· Indicative market rents.
Interested parties should provide this information on the submission template available at www.environ.ie and the template should be returned directly to the local authority.
Initial submissions should be addressed to the Director of Housing (see details below) and the envelope should be clearly marked, ‘Expressions of Interest for Long Terms Leasing arrangements.’
Director of Services, Housing & Corporate Services, Leitrim County Council, Áras an Chontae, Carrick on Shannon, Co. Leitrim
Following receipt of initial submissions the relevant local authority will consider the properties submitted against their requirements for housing within the proposed areas. Further details will be requested for properties that are considered suitable after this initial submission and will include:-
· A plan outlining the exact location of the properties submitted.
· A full specification of each property proposed.
· Proof of ownership (evidence of title i.e. freehold/leasehold) of the submitted properties or details of the company to which the properties are owned will be required.
· A Tax Clearance Certificate (TCC) will be required for the payment of rent. An updated TCC certificate will be required on an annual basis.
· Proposed discounted rented price.
· Parking arrangements
· Description of development
The Lease/Rent
· The properties will be provided unfurnished and on ‘repair and insure’ basis where the Local Authority will be responsible for the insurance, maintenance and general repair of the properties.
· A lease agreement will be subject to rent reviews, which may be revised on an upward and downward basis dependent on market conditions.
· The local authority will make regular payments to the property owner in accordance with the agreed lease.
· The agreed rent will be an ‘inclusive’ rent to include all rates, charges and taxes that might apply to that property.
· The proposed rent will need to reflect the strength of the rent and void guarantee, lease duration, the transfer of maintenance and management responsibilities and special terms and conditions of the lease arrangement. Rent free period / break options and rent reviews may form part of the lease negotiations.
· If properties are held under a mortgage it will be necessary to provide the mortgage lenders consent.
The Property
· Properties will need to be in compliance with planning and all relevant technical standards, supporting certificates of compliance documentation will be required before agreements will be signed;
· Structural guarantees will be required for the duration of the lease; structural guarantees e.g. Home Bond/Premier Guarantee, must be submitted with your proposal. Throughout the term of the lease the owner will retain responsibility for any structural defects.
· BER rating certificates will be required with all properties submitted to the initiative.
· An initial inspection/condition report will be required of each property before the initial agreements are made.
General enquiries can be made by contacting the relevant local authority.
Submission Template - New long term leasing scheme.doc (size 46.6 KB)
Submission Template New Long Term Leasing Scheme PDF Format.pdf size 77.8 KB)
New Long Term Leasing Scheme
The Department of Environment, Heritage and Local Government has established a new leasing initiative for the delivery of social housing and Local Authorities have been requested by the Department to consider proposals from properties owners in line with this new initiative.
Terms of Scheme:
In accordance with the Terms of the Long Term Leasing Scheme:
- Leasing proposals must ensure that accommodation is in a location and of a type that can appropriately meet the needs of persons on local authority housing lists.
- Local authorities will also need to demonstrate that having regard to the concentration of other social housing in a particular development or in the general area, the leasing proposal does not conflict with the mixed income, mixed tenure dimension to the overall sustainable communities objective.
The main features of the new arrangements are as follows;
- The housing authority will enter into a lease arrangement with a property owner for periods of between 10 – 20 years
- The leases will be for unfurnished dwellings
- The lease type will be full ‘repair and insure’ lease with the housing authority responsible for insurance, maintenance and general repair/ upkeep of the property
- The Rent:
o A lease agreement will be subject to rent reviews, which may be revised on an upward and downward basis dependent on market conditions.
o The agreed rent will be an ‘inclusive’ rent to include all rates, charges and taxes that might apply to that property.
o The proposed rent will need to reflect the strength of the rent and void guarantee, lease duration, the transfer of maintenance and management responsibilities and special terms and conditions of the lease arrangement. Rent free period / break options and rent reviews may form part of the lease negotiations
o The housing authority will make regular payments to the property owner in accordance with the terms of the lease
- The Property:
o If properties are held under a mortgage it will be necessary to provide the mortgage lenders consent.
o Proof of ownership will be required
o Properties will need to be in compliance with planning and all relevant technical standards (Building Regulations etc) - supporting certificates of compliance documentation will be required before agreements will be signed
o Structural guarantees will be required for the duration of the lease - structural guarantees e.g. Home Bond/Premier Guarantee, must be submitted with proposals. Throughout the term of the lease the owner will retain responsibility for any structural defects.
o BER rating certificates will be required with all properties submitted to the initiative.
o An initial inspection/condition report will be required of each property before the initial agreements are made.
- The accommodation leased will be used to house persons on the local authority’s waiting list and tenants will be local authority tenants [or in some cases tenants of voluntary bodies]
- At the end of the period of lease, the property will be returned to the owner in the same general condition as at the commencement of the lease
Project Appraisal: Formal Submission to Department
Local authorities are required to submit proposals for leased properties to the Department for project appraisal. A key criterion in the approval of any leasing project will be compliance with sustainable community requirements, including the achievement of mixed-income/mixed-tenure communities, at appropriate densities and occupancy rates, and avoiding social concentrations.
In order to assess the proposals put forward for leasing purposes there are a number of specific requirements that must be included in the proposals submitted to the Department including:
- Details of proposed project(s) including number and types of units
- The proposed cost of lease payments, term of the lease and relevant conditions
- Demonstration of housing need in area including the number of rent supplement recipients
- Description of the overall development and breakdown of the types of occupancy, i.e. Markey housing, affordable housing and social housing. Authorities will also need to include the number of unoccupied units within the development.
- Confirmation that the properties meet appropriate standards, BER ratings, etc.
- Value for money statement including comparable market rents in the area and level of discount achieved,
- Any other relevant information
Allocation Policy
- Housing authorities will allocate leased properties to persons on the local authority housing waiting list in accordance with the scheme of letting priorities
- Refusal of a leased property should, unless there are exceptional circumstances, be treated as a refusal of a local authority house
- Once allocated a leased property, the tenant should be taken off the local authority waiting list
- Tenants of leased property can apply for a transfer to another social housing unit in the normal manner
- Tenants are also eligible to apply to purchase a new local authority dwelling under the Incremental Purchase Scheme.