Leasing

Approved Housing Bodies (AHBs) are now able to procure units under the leasing initiative. This may be done in one of two ways:

• The AHB may lease units from a private owner/developer and make them available to persons assessed as being in need of social housing support
• The AHB may undertake the purchase/construction of units using private finance, which will then be made available to meet housing needs.

In both cases the lease payments will be based on a comparison to local market rent. Indicative costing for these elements suggest a discount of at least 20% below market should be sought when negotiating lease payments. Where proposals are approved, the Department will enter into a payment and availability agreement directly with the approved body.

• The approved housing body 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 body responsible for insurance, maintenance and upkeep;
• The accommodation leased will be used to house persons on the local authority’s waiting list.