Cost Rental Dwellings
AFFORDABLE HOUSING ACT 2021
PART 3
Cost Rental Dwellings
Section 28
Interpretation (Part 3)
28. In this Part—
“Act of 2004” means the Residential Tenancies Act 2004;
“Act of 2014” means the Housing (Miscellaneous Provisions) Act 2014;
“cost calculation period” has the meaning given to it by section 29(3)(d);
“cost rental designation” means a designation of a dwelling as a cost rental dwelling under the seal of the Minister in accordance with section 30;
“cost rental dwelling” means a dwelling specified in a cost rental designation;
“cost rental period”, in relation to a cost rental dwelling, means the period beginning on the date on which the cost rental designation specifying the dwelling is sealed by the Minister and ending on the date specified in the cost rental revocation;
“cost rental rent” has the meaning given to it by section 33(4);
“cost rental revocation” means a revocation of a cost rental designation under the seal of the Minister in accordance with section 38;
“cost rental tenancy” means a residential tenancy of a cost rental dwelling;
“housing assistance” has the same meaning as it has in Part 4 of the Act of 2014;
“initial maximum rent”, in relation to a cost rental dwelling, means the initial maximum rent specified in the cost rental designation;
“minimum cost rental period extension” means a confirmation under the seal of the Minister in accordance with section 37 that the minimum period has been extended;
“minimum period” has the meaning given to it by section 29(3)(e).
Section 29
Application for designation as cost rental dwelling
29. (1) The owner of a dwelling may apply to the Minister to designate the dwelling as a cost rental dwelling.
(2) An application under this section shall be made in such manner and form, and contain such information, including information regarding the proposed cost rental period and information as to how proposed rents will cover estimated costs, as the Minister may prescribe.
(3) Without prejudice to the generality of subsection (2) an application pursuant to this section shall include the following:
(a) particulars identifying the dwelling to which the application relates;
(b) particulars of the owner’s title to, and any incumbrances on, the dwelling;
(c) the written consent of the holder of any estate or interest in the dwelling or any incumbrancer who, in the opinion of the owner of the dwelling or of the Minister, will be affected by designation of the dwelling as a cost rental dwelling;
(d) a statement of the proposed initial maximum rent in respect of the dwelling calculated in such manner as would over the duration of a stated period of not less than 40 years (in this Part referred to as the “cost calculation period”) amortise a sum not greater than the estimated total cost to the owner (duly apportioned where the application relates to more than one dwelling) of acquiring, developing and otherwise making available the dwelling and of letting the dwelling to tenants under cost rental tenancies for the duration of the cost calculation period in accordance with regulations made by the Minister;
(e) a statement of the proposed minimum cost rental period in respect of the dwelling (in this Part referred to as the “minimum period”);
(f) details of the estimated total cost referred to in paragraph (d) including—
(i) costs associated with making the dwelling available for rent including any capital development or acquisition costs involved,
(ii) financing costs associated with making the dwelling available for rent including debt finance costs, interest charges and limited equity returns,
(iii) necessary and appropriate management costs associated with the dwelling, including costs of letting the dwelling,
(iv) costs associated with necessary and appropriate maintenance of the dwelling during the cost calculation period,
(v) costs of maintaining a prudent contingency surplus in addition to a sinking fund created to meet projected maintenance costs associated with the dwelling during the cost calculation period;
(g) a declaration that all factual statements contained in the application are true and correct to the best of the applicant’s knowledge, information and belief;
(h) a declaration that the owner and the owner’s successors in title will comply with the obligations of an owner if the dwelling is designated as a cost rental dwelling.
(4) The proposed minimum period referred to in subsection (3)(e) shall be a period not less than the cost calculation period.
(5) The Minister may request such additional and supplementary information as he or she requires to determine an application under this section.
(6) Where the owner of a dwelling amends an application under this section the owner shall provide a revised declaration referred to in subsection (3)(g).
Annotations
Editorial Notes:
E22
Power pursuant to section (19.08.2021) by Affordable Housing Act 2021 (Cost Rental Designation) Regulations 2021 (S.I. No. 425 of 2021), in effect as per reg. 2.
Section 30
Designation as cost rental dwelling
30. (1) Where following an application under section 29 the Minister intends to designate a dwelling as a cost rental dwelling he or she shall provide the owner with a document in the prescribed form setting out the basis on which the Minister proposes to designate the dwelling and including the following information:
(a) particulars identifying the dwelling;
(b) a statement of the minimum period;
(c) a statement of the initial maximum rent;
(d) an assent to the registration of the cost rental designation as a burden on or act affecting the dwelling on behalf of the owner;
(e) such further particulars as may be prescribed.
(2) Where the owner is satisfied to proceed with the designation, the owner shall execute the document in such manner as may be prescribed and return it to the Minister within such period as may be prescribed, whereupon the Minister shall complete the designation by applying his or her seal to the document.
(3) The dwelling specified in the cost rental designation shall stand designated as a cost rental dwelling from the date on which it is sealed by the Minister.
(4) As soon as practicable after it is sealed by the Minister, a copy of the cost rental designation shall be furnished to the owner of the dwelling concerned and to any person who gave consent to the application under section 29(3)(c).
(5) A cost rental designation shall be registrable in the Registry of Deeds as an act of the owner affecting the cost rental dwelling and, as the case may be, in the Land Registry as a burden on any folio in which the cost rental dwelling or any part thereof is registered and where the Minister seals a cost rental designation under subsection (2), the Minister shall, as soon as practicable thereafter, cause it to be so registered in the Registry of Deeds or the Land Registry, or both, as appropriate.
(6) The Minister shall keep a record of all cost rental designations.
Annotations
Editorial Notes:
E23
Power pursuant to section (19.08.2021) by Affordable Housing Act 2021 (Cost Rental Designation) Regulations 2021 (S.I. No. 425 of 2021), in effect as per reg. 2.
Section 31
Lettings of cost rental dwelling
31. (1) The landlord of a cost rental dwelling shall—
(a) lease it—
(i) in a transparent manner,
(ii) on terms in accordance with the cost rental designation,
(iii) to a tenant whose household falls within prescribed eligibility requirements, and
(iv) having due regard to the accommodation needs of proposed tenants and to the size and type of dwelling concerned,
and
(b) comply with regulations made by the Minister under subsection (3).
(2) The landlord of a cost rental dwelling may only enter into a tenancy agreement in respect of that dwelling that complies with regulations under this section and includes such mandatory terms as the Minister may prescribe.
(3) The Minister may prescribe the following matters for the purposes of this section:
(a) the process by which vacancies which may arise in cost rental dwellings are to be notified to the public, applied for and allocated;
(b) eligibility requirements in respect of tenants, including maximum and minimum income levels for tenants and the households of tenants, having regard to the type, size, and location of the dwelling, and the size and composition of the household;
(c) the process by which tenants are to be selected;
(d) the placing of tenants into particular dwellings appropriate to their needs;
(e) in specified circumstances, the selection of tenants by lottery;
(f) the form and content of a cost rental tenancy agreement, including mandatory terms of the agreement, which may include, but shall not be limited to, covenants on the part of the landlord and the tenant, agreements and provisos with regard to the cost rental tenancy, provision for the giving or service of notices, deemed dates of receipt of notices and other incidental and consequential matters.
(4) Regulations under this section shall not affect the discretion of the owner of a cost rental dwelling to proceed or not to proceed with any particular letting notwithstanding that a prospective tenant is eligible under such regulations.
Annotations
Editorial Notes:
E24
Power pursuant to subs. (3)(b) exercised (1.08.2023) by Affordable Housing Act 2021 (Cost Rental Eligibility) Regulations 2023 (S.I. No. 374 of 2023), in effect as per reg. 1(2).
E25
Power pursuant to section exercised (1.01.2022) by Affordable Housing Act 2021 (Cost Rental Rent Setting) Regulations 2021 (S.I. No. 756 of 2021), in effect as per reg. 1(2).
E26
Power pursuant to section (1.01.2022) by Affordable Housing Act 2021 (Cost Rental Letting and Eligibility) Regulations 2021 (S.I. No. 755 of 2021), in effect as per reg. 1(2).
Section 32
Application of Act of 2004
32. (1) Save insofar as it is excluded by this section or section 33, or otherwise inconsistent with this Part, the Act of 2004 shall—
(a) subject to subsection (2) of section 3 of the Act of 2004, apply to every cost rental dwelling, the subject of a tenancy, and
(b) notwithstanding paragraph (a), apply to a dwelling of a type referred to in subsection (2)(c) of section 3 of the Act of 2004.
(2) A cost rental dwelling is not a dwelling referred to in section 3(4) of the Act of 2004.
(3) The grounds for termination of a residential tenancy in paragraphs 3, 4, 5 and 6 of the Table to section 34 of the Act of 2004 shall not apply where the tenancy is a cost rental tenancy.
(4) Subject to subsection (5), a tenant of a cost rental dwelling shall not assign or sub-let the cost rental tenancy and—
(a) any such purported assignment or sub-letting shall be void, and
(b) section 16(k) of the Act of 2004 shall not apply to a cost rental tenancy.
(5) Subsection (4) shall not apply to the removal, replacement or addition of one or more tenants (other than the removal or replacement of all the tenants in the cost rental dwelling, by whatever means effected) where it is provided for in regulations under subsection (6) and is with the written consent of the landlord.
(6) The Minister may, for the purposes of giving effect to eligibility requirements, prescribe the circumstances in which and the process by which a landlord of a cost rental dwelling may give his or her consent to the removal, replacement or addition of tenants referred to in subsection (5).
(7) A landlord of a cost rental dwelling shall in the removal, replacement or addition of a tenant of a cost rental dwelling comply with matters prescribed by the Minister under subsection (6).
(8) Sections 50(8) and 76(4) of the Act of 2004 shall not apply to a person who is lawfully in occupation of a cost rental dwelling as a licensee of the tenant during the subsistence of a tenancy protected under Part 4 of that Act and who requests the landlord of the dwelling to allow him or her to become a tenant of the dwelling.
Section 33
Setting and review of rent in cost rental tenancy
33. (1) Part 3 of the Act of 2004 shall not apply to the payment or setting of rent under a cost rental tenancy.
(2) In setting, at any particular time, the rent under a cost rental tenancy, a rent shall not be provided for that is greater than the cost rental rent for that dwelling specified in subsection (4).
(3) The reference in this section to the setting of the rent under a cost rental tenancy is a reference to—
(a) the initial setting of the rent under the tenancy, and
(b) any subsequent setting of the rent under the tenancy by way of a review of that rent (in this section referred to as “setting of the rent by way of a review”).
(4) In this section the “cost rental rent” means—
(a) in the case of the initial setting of the rent under a cost rental tenancy—
(i) the initial maximum rent, plus,
(ii) an amount, calculated in such manner as the Minister may prescribe, to take account of any change in the Harmonised Index of Consumer Prices as published by the Central Statistics Office, or such other index as the Minister may prescribe, since the dwelling was designated as a cost rental dwelling,
(b) in the case of the first setting of the rent by way of a review—
(i) the rent set by the initial setting of the rent, plus,
(ii) an amount, calculated in such manner as the Minister may prescribe, to take account of any change in the Harmonised Index of Consumer Prices as published by the Central Statistics Office, or such other index as the Minister may prescribe, since the initial setting of the rent,
(c) in the case of a subsequent setting of the rent by way of a review—
(i) the rent set by the previous setting of the rent by way of a review, plus,
(ii) an amount, calculated in such manner as the Minister may prescribe, to take account of any change in the Harmonised Index of Consumer Prices as published by the Central Statistics Office, or such other index as the Minister may prescribe, since the previous setting of the rent by way of a review.
(5) Subject to this section, the setting of the rent by way of a review shall be carried out in accordance with the cost rental tenancy agreement concerned including any mandatory terms prescribed by the Minister under section 31.
(6) A setting of the rent by way of a review may not occur—
(a) in the period of 12 months beginning on the commencement of the cost rental tenancy,
(b) more frequently than once in each period of 12 months.
(7) Where a cost rental tenancy agreement does not include provision for a review of rent the landlord may initiate a review of the rent in accordance with this section.
(8) Where the cost rental tenancy agreement does not include provision for the frequency of rent reviews the date on which the setting of the rent by way of a review is to take effect shall be the anniversary of the commencement of the cost rental tenancy.
(9) A setting of the rent by way of a review shall be initiated by the service of notice thereof (in this Part referred to as a “rent review notice”) by the landlord or his or her authorised agent in the prescribed form and in accordance with subsection (10).
(10) A rent review notice shall—
(a) be served not earlier than two weeks before, and not later than four weeks after, the date on which the setting of the rent by way of a review is to take effect,
(b) state the amount of the rent (in this Part referred to as the “new rent”) set by way of the review,
(c) state the date from which the new rent is to take effect,
(d) state that a dispute in relation to the setting of the new rent must be referred to the Residential Tenancies Board under Part 6 of the Act of 2004 before the expiry of 28 days from the receipt by the tenant of that notice,
(e) confirm that the new rent is not greater than the cost rental rent for that dwelling on the earlier of—
(i) the date on which the rent review notice is signed, or
(ii) the date from which the new rent is to take effect,
(f) state the date on which the rent review notice is signed, and
(g) be signed by the landlord or his or her authorised agent.
(11) Subject to subsection (12), notwithstanding that the new rent may take effect from the date specified in the rent review notice, the new rent shall not become payable until the later of—
(a) the next gale day after the expiration of 28 days from the date of receipt of the rent review notice, where no dispute in relation to the new rent is referred to the Residential Tenancies Board under Part 6 of the Act of 2004, and
(b) the next gale day after the expiration of 28 days from the determination by the Residential Tenancies Board where a dispute in relation to the new rent is referred to it under Part 6 of the Act of 2004.
(12) Any difference that accrues between the rent prior to the rent review and the new rent by virtue of the provisions of subsection (11) shall be paid within 12 weeks of the date upon which the new rent becomes payable under subsection (11).
(13) Every person entitled to any rent in arrears or to be paid other charges under a cost rental tenancy (whether in his or her own right or as personal representative of a deceased landlord) shall be entitled to recover, under Part 6 of the Act of 2004, such arrears or charges from any person who occupied the cost rental dwelling as a tenant in the period in which the arrears accrued or the charges arose or, as appropriate, from the personal representative of that person.
(14) The provisions of the Act of 2004 specified in column (2) of the Table to this section at each reference number shall apply to cost rental tenancies as if the provisions of the Act of 2004 specified at the same reference number in column (3) of the Table were references to the provisions of this section specified at the same reference number in column (4) of the Table, subject, where relevant, to any proviso specified at the same reference number in column (5).
Table
Ref No.
(1)
Section of Act of 2004
(2)
Provisions of Act of 2004 referenced
(3)
Substituted provisions of this section
(4)
Proviso
(5)
1.
section 75(4)(b)
section 23
subsection (13)
2.
section 78(1)(b)
sections 19 or as the case may be 19A
subsections (2), (3)(a) and (4)(a)
A referral of any such dispute or complaint must be made before—
(a) the date on which the tenancy is to begin, or
(b) the expiry of 28 days from the date of the cost rental tenancy agreement
3.
section 78(1)(c)
Part 3
subsections (2), (3)(b), (4)(b) and (5) to (12)
A referral of any such dispute or complaint must be made before the expiry of 28 days from the receipt by the tenant of the rent review notice
4.
section 115(2)(b)
subsection (1) or (4) of section 19
subsection (2)
5.
section 120(2)
section 19(2)
subsection (3)
6.
section 135(4)(e)(i)(I)
sections 19, 20 and 22
subsections (2) to (12)
7.
section 135(4)(e)(ii)(I)
section 19
subsection (2), (3)(a) and (4)(a)
Annotations
Editorial Notes:
E27
Power pursuant to section exercised (1.01.2022) by Affordable Housing Act 2021 (Cost Rental Rent Setting) Regulations 2021 (S.I. No. 756 of 2021), in effect as per reg. 1(2).
Section 34
Housing assistance payment
34. (1) Notwithstanding the provisions of Part 4 of the Act of 2014 a household shall not be deemed to be qualified for housing assistance in respect of a cost rental dwelling, and for the avoidance of doubt—
(a) a housing authority shall not provide housing assistance in respect of a cost rental dwelling, and
(b) a landlord shall not receive the payment of housing assistance in respect of a cost rental dwelling,
unless at least one member of the household for which housing assistance is sought has been party to a current tenancy agreement in respect of that cost rental dwelling for a continuous period of more than 6 months.
(2) The payment or receipt of housing assistance contrary to subsection (1) shall not of itself affect the validity the cost rental tenancy concerned.
(3) Compliance with subsection (1) shall not constitute discrimination in the provision of accommodation within the meaning of section 6 of the Equal Status Act 2000.
Section 35
Cost rental tenancy not social housing support
35. (1) For the avoidance of doubt, a tenancy in respect of a cost rental dwelling is not social housing support within the meaning of section 19 of the Act of 2009, notwithstanding that the dwelling may be provided or let by a housing authority, or by an approved housing body.
(2) Where housing assistance in respect of a cost rental dwelling is provided to a household specified in section 34 such assistance shall be deemed to be an appropriate form of social housing support for a household that is determined by a housing authority under section 20 of the Act of 2009 to be qualified for such support.
Section 36
Obligation of owner to provide information to Minister regarding cost rental dwelling
36. For the purpose of monitoring compliance with the requirements of this Part and for the compilation of statistical data with regard to the operation of this Part, the Minister may make regulations requiring owners and, by reference to a prescribed period, former owners, of cost rental dwellings to—
(a) maintain records of such information as may be prescribed in relation to the cost rental dwelling concerned, including:
(i) information regarding the letting of that dwelling during such period as may be prescribed;
(ii) information regarding the setting or review of the cost rental rent during such period as may be prescribed;
(iii) information regarding any application for, or payment of, housing assistance in respect of the dwelling during such period as may be prescribed,
and
(b) make such records available to the Minister upon request in accordance with such procedure as may be prescribed.
Section 37
Extension of minimum period
37. (1) The owner of a cost rental dwelling may, with the consent of any person who gave consent to the application under section 29(3)(c), apply to the Minister for an extension of no less than 5 years to the minimum period—
(a) prior to the end of the minimum period, or
(b) after the end of the minimum period (provided that the relevant cost rental designation has not been revoked).
(2) Where the Minister receives an application under subsection (1), he or she shall give consent in writing under his or her seal (in this Part referred to as a “minimum cost rental period extension”), in such form as the Minister may prescribe, to the minimum period specified in the cost rental designation relating to the dwelling being—
(a) in the case of an application referred to in subsection (1)(a), extended by the period specified in the minimum cost rental period extension, and
(b) in the case of an application referred to in subsection (1)(b), such new period as is specified in the minimum cost rental period extension.
(3) As soon as practicable after it is sealed by the Minister, a copy of the minimum cost rental period extension shall be furnished to the owner of the dwelling concerned and to any person who gave consent to the application under section 29(3)(c).
(4) The minimum cost rental period extension shall be registrable in the Registry of Deeds as an act of the owner affecting the cost rental dwelling and, as the case may be, in the Land Registry as a burden on any folio in which the cost rental dwelling or any part thereof is registered and where the Minister seals a minimum cost rental period extension under subsection (2), he or she shall, as soon as practicable thereafter, cause it to be so registered in the Registry of Deeds or the Land Registry, or both, as appropriate.
Section 38
Termination of cost rental period
38. (1) The owner of a cost rental dwelling may, following the expiration of the minimum period, with the consent of any person who gave consent to the application under section 29(3)(c), apply to the Minister for the revocation of a cost rental designation.
(2) Where the Minister receives an application referred to in subsection (1), the Minister shall revoke the cost rental designation in writing under his or her seal (in this Part referred to as a “cost rental revocation”) within a period of 28 days, in accordance with regulations made under this Part.
(3) The owner of the cost rental dwelling may, with the consent of any person who gave consent to the application under section 29(3)(c), apply to the Minister for the revocation of a cost rental designation during the minimum period.
(4) Where the Minister receives an application referred to in subsection (3), the Minister may, following such inquiries as he or she deems appropriate and if satisfied on exceptional grounds that it is in the public interest that the cost rental designation be revoked, issue a cost rental revocation.
(5) For the purposes of subsection (4), “exceptional grounds” means facts and circumstances not reasonably foreseeable by the owner or the Minister at the time of the cost rental designation which in the opinion of the Minister render the operation of this Part unachievable in respect of the cost rental dwelling concerned.
(6) A cost rental revocation referred to in subsection (4) may contain such conditions as the Minister deems appropriate having regard to the circumstances in which it is issued.
(7) Subject to subsection (6), a cost rental designation shall stand revoked from the date on which the cost rental revocation is sealed by the Minister.
(8) A cost rental revocation shall be in such form as the Minister may prescribe.
(9) As soon as practicable after it is sealed by the Minister, a copy of the cost rental revocation shall be furnished to the owner of the dwelling concerned and to any person who gave consent to the application under section 29(3)(c).
(10) Any cost rental designation or minimum cost rental period extension registered as a burden on any folio in which the relevant cost rental dwelling or any part thereof is registered in the Land Registry shall be cancelled on making an application in such manner as may be prescribed in Land Registry rules following the sealing of a cost rental revocation.
(11) Any cost rental designation or minimum cost rental period extension registered as an act of the owner affecting a cost rental dwelling in the Registry of Deeds shall be recorded as satisfied or otherwise discharged on making an application in such manner as may be prescribed in Registry of Deeds rules following the sealing of a cost rental revocation.
Section 39
Cost rental tenancies subsisting on termination of cost rental period
39. Where a tenancy that is a Part 4 tenancy or a further Part 4 tenancy within the meaning of the Act of 2004 is subsisting in relation to a cost rental dwelling on the date on which the cost rental designation in respect of the dwelling is revoked, the provisions of this Part shall continue to apply to that tenancy until the tenancy is validly terminated.
Section 40
Loans to approved housing bodies in support of cost rental dwellings
40. (1) The Minister may, from time to time, out of moneys provided by the Oireachtas for that purpose, make grants to the Housing Agency for the purpose of making loans to approved housing bodies for the development or provision of dwellings to be designated as cost rental dwellings under section 30.
(2) Where the Minister makes grants under subsection (1), he or she shall direct the Housing Agency to apply the funds received by it pursuant to the grants for the purposes specified in that subsection in accordance with such regulations as may from time to time be made by the Minister under subsection (13).
(3) The Housing Agency shall not make a loan under this section without the prior written consent of the Minister.
(4) The Housing Agency shall, where requested to do so by the Minister and in accordance with the terms of any such request, invite and receive proposals from approved housing bodies, to be made in accordance with the procedures and requirements of the Housing Agency in that behalf, for the making of loans under this section.
(5) The Housing Agency shall consider any proposals from approved housing bodies under subsection (4) made in accordance with the procedures and requirements of the Housing Agency.
(6) The Housing Agency shall, after it has considered proposals received by it under subsection (4), provide a report to the Minister which shall contain the Agency’s assessment of the merits of each proposal together with its opinion as to whether a loan should be made in respect of each proposal.
(7) The Minister shall consider the assessment and opinion of the Housing Agency and shall decide whether to consent to the making of a loan under this section.
(8) The Housing Agency may engage such competent persons (including consultants and advisers) as it considers necessary for the purposes of performing its functions under this section.
(9) The Housing Agency shall have all such powers as are necessary or expedient for the performance of its functions under this section.
(10) The Housing Agency may perform any of its functions under this section through or by any member of the staff of the Housing Agency duly authorised in that behalf by the Housing Agency.
(11) The Housing Agency shall furnish to the Minister such information regarding the performance or proposals for the performance of its functions under this section as the Minister may from time to time require.
(12) The Housing Agency shall keep, in such form as may be approved by the Minister, with the consent of the Minister for Public Expenditure and Reform, all proper and usual accounts of all moneys received or expended by it under this section and, in particular, shall keep in such form as aforesaid all such special accounts as the Minister, with the consent of the Minister for Public Expenditure and Reform, may from time to time direct.
(13) The Minister may make regulations in relation to the making of loans under this section including regulations prescribing—
(a) the duration of such loans,
(b) the percentage of, and the manner of calculation of, the capital costs of the dwellings in respect of which such loans may be made,
(c) any conditions to be attached to the loans, including any requirements in respect of the security arrangements to be put in place in respect of such loans,
(d) the manner in which the Housing Agency is to deal with moneys received by it from approved housing bodies in repaying loans made under this section including as to whether such moneys are to be—
(i) paid into, or disposed of for the benefit of the Exchequer, in such manner as the Minister for Public Expenditure and Reform thinks fit,
(ii) with the consent of the Minister for Public Expenditure and Reform, used by the Housing Agency to make further loans in accordance with this section, or
(iii) with the consent of the Minister for Public Expenditure and Reform, paid to the Minister for Housing, Local Government and Heritage.
(14) In this section, “Housing Agency” means the Housing and Sustainable Communities Agency.