Plan for unsold affordable housing units

gurramok

http://www.rte.ie/news/2009/0120/housing.html

For social housing.

This issue of unsold units in DCC has been rumbling in the news for the past week. So buyers beware, if you do not like social tenants living in your block, well its your decision whether to buy.

The housing committee was told that the Department of the Environment is considering a 'rent before you buy' scheme for affordable housing similar to ones offered by private developers.

Executive manage Peter Ayrton said the council 'hasn't got a bean' in its budget to purchase the unwanted units for social housing.

But there is money to temporarily rent some to people on the housing waiting list under the Rental Allowance Scheme.

Mr Ayrton said the units would be put to a productive use and they could then be returned to the affordable housing list when the market improves.

Recover?

You will be waiting years. They are dumping social tenants there to try to make some money back.

Lachako

Is it possible that the Council would then face legal action from private /affordable apartment owners who were told that there would only be a certain amount of social units in each development? I think this could be the case. Whilst trying to incorporate some social housing tenants into these schemes to create a better social mix, I don't think the Council would get away with turning these developments into majority social housing complexes. They'd face a legal battering from private purchasers.

gurramok

That depends if that agreement was set in stone legally. I can just not see verbal re-assurances holding up in a court of law.

There are alot of apts in the Docklands(both northside & southside) that have been unsold. I do know that alot in Hanover quay area were assigned for affordable housing so there may not be alot that are unsold.(ref to other thread you had started )

But on the north quays, there are a fair few unsold that the amount is just unreal. Same goes for the suburbs.
Thought i'd highlight the issue as the old saying about buyers beware comes to mind.

Victor

Lachako wrote: »

They'd face a legal battering from private purchasers.

On what grounds?

Lachako

Dublin City Council or Dublin Docklands Development Authority get 20% of new build apartments in developments under Part V of affordable housing scheme. In exchange for giving the local authority 20% of units, developers get the land to build the development on and the rest of the units to sell at an open market price. The idea is that a better mix of private (80%), affordable (10%) and social (10)%) housing is created.

Now imagine if you've bought privately expecting a mix, only to find that it is now 20% social housing. Some of your neighbours are renting an apartment similar to yours for a nominal rent and might not necessarily have much regard or respect for the property and it's surrounds, as they have not had to fork out a large sum of their own money to live there. I don't know the legal terminology, but breaking legislation that is in place surely creates a high probability of someone being sued, especially when there's money and property involved.



Taken from http://www.rte.ie/news/2009/0116/housing.html



Dublin City Council is to offer price cuts to try to off-load a stock of affordable housing units but will not be using the vacant homes for social housing.


Chairman of the Council's Housing Committee Eric Byrne said the Council is facing a financial crisis as it has borrowed money to buy these units and is now liable for management fees.

He said if the units were given over to social housing the Council could face a backlash and even legal action from those who already bought privately.

Klingon Hamlet

OK maybe I'm in the minority here but if people are on the sociable housing list, they generally need the home moreso than their more financially comfortable counterparts on the affordable housing scheme. I generalise but then this is all very macro.

So, I would rather see them get the house than see the house stand empty and useless.

I'm giving rough figures here: in the papers today Dublin City Council offered 350 houses to affordable housing scheme applicants. Roughly 280 declined these houses. This is due to the near parity between affordable housing prices and open market prices.

So if you disagree with offering these empty and useable properties to those that appreciate it and are clearly in more need of it, what is your reasoning, and what is the more viable alternative?

I direct this at everyone.

gurramok

Problem is they get it for free while they have no job while the person who bought it works hard to pay for it next door, simple as?

I can see the reasoning to offer these empties to poor families on the waiting list but offering them free to live next door to a family who work their butt of for an identical unit is just not on.

More info today. There are actually 3,000 affordable units lying empty, mostly in Dublin.
http://www.independent.ie/national-news/property-slump-leaves-3000-affordable-homes-unsold-1609717.html

Dublin City Council last night said it had 630 units, while Cork County Council is believed to have another 600 unsold units on its books. Fingal has up to 400; Dun Laoghaire-Rathdown and South Dublin have 250; Meath has 200; Kildare 150; and Laois 100.