Clúid Housing Association is working with the Department of the Environment, Community and Local Government on a pilot ‘mortgage-to-rent’ scheme. The scheme was recommended as part of the Keane report on mortgage arrears.
Clúid is currently working with the Department, the Housing Agency and AIB to agree the final details of the pilot scheme.
“The aim is to assist vulnerable home-owners who have unsustainable mortgages and are in danger of losing their home,” said Brian O’Gorman, Chief Executive of Clúid. “We anticipate that the pilot scheme will involve a small number of households”.
“At the moment, the scheme is being finalised and we are working with all of the organisations involved to iron out the details. We look forward to working on this pilot. We view it as an important initiative in assisting vulnerable home-owners who are in danger of losing their homes.”
The pilot scheme will involve households that:
- Have had their mortgage position deemed unsustainable, under the Mortgage Arrears Resolution Process;
- Agree to voluntarily surrender their home to their lender;
- Have a home with a current market valuation of no more than €220,000;
- Have a net household income of less than €35,000 a year (net household income is the household income after taxes and other social insurance (PRSI) have been taken off);
- Do not own any other properties;
- Have a long-term right to remain in Ireland, and;
- Are eligible for social housing support with the local authority.
After voluntary surrender has taken place, the properties in question will be purchased by Clúid at current market value. The households involved will then become tenants, paying a weekly rent to Clúid based on their income. They will no longer be homeowners and will have no legal or financial interest in the property.
The funding of these acquisitions will be via a combination of private finance raised by Clúid and the utilisation of loans available under the Capital Advance Leasing Facility. Clúid will also access funding under a payment and availability agreement with the local authority.
It is anticipated that the Government will roll out the scheme nationally to all lenders following the pilot - this is expected to take place before the end of June 2012. In the interim those facing difficulties with their mortgages should contact their lender.
“Clúid’s involvement in this project is reflective of the innovation and responsiveness that are at the heart of the organisation”, said Brian O’Gorman. Brian is also President of the Irish Council for Social Housing and said “our involvement in the pilot ‘mortgage-to-rent’ scheme demonstrates the willingness of the sector to adapt to the changing environment by leading the way in offering housing solutions that meet the changing needs of people in the aftermath of the recession, etc.”
Clúid is a not-for-profit housing association and an approved housing body, which develops and manages rented housing for people on low incomes and people with special needs. It is a registered charity. Further information about Clúid is available here on our website.
Clúid develops and manages rented housing for people on low incomes and people with special needs. The association was registered as a company in February 1994. It is a registered charity and a non-profit-making organisation. With its National Office in Dublin, Clúid delivers its housing management services through three regional offices based in Cork, Galway and Dublin. It currently owns 3,558 homes across the country; a further 1,348 are managed on behalf of local authorities and other third-party owners. Over 500 of its homes are specifically for older people. As well as managing social housing, Clúid also has experience of delivering managing agent services. Clúid’s vision is of a society where everyone has a great place to live. This reflects Clúid’s mission of ‘providing quality housing and services to enable people to create homes and thriving communities’.
All media queries should be directed to Martina Quinn, DHR Communications, Tel: 01-4200580 / 087-6522033