North West Simon Community has warned that HAP renters in the North West could be knocked out of the market if the scheme isn’t matched to Mica Accommodation Allowance rates.
The homelessness prevention charity is calling for urgent change to avoid a two-tiered rental system in the region.
Mica homeowners will be entitled to a €15,000 rental accommodation allowance to secure alternative housing.
Depending on how long it takes to complete repairs, this allowance could be worth between €833 and €1250 per month to a landlord. This will be much more than what is offered under the Housing Assistance Payment scheme and will make current rates “extremely unattractive”, the Simon Community warns.
They: “It is essential that HAP Limits in the North West be aligned with the Mica Accommodation Allowance to present any prospect for new HAP Tenancies to be created in the region, and ensure that homelessness doesn’t drastically increase across the region in the coming years.”
Noel Daly, General Manager of North West Simon Community said the housing crisis in the region could worsen significantly when the Mica Redress Scheme is fully activated.
Latest estimates are that as many as 6,700 properties in Donegal may qualify for repair under the Redress Scheme. Government has estimated that up to 4,800 private dwellings, and 1,000 social housing dwellings, may be eligible in County Donegal, while 900 RTB registered properties seem set to benefit, with the vast majority, if not all of these also in Donegal.
Mr Daly said: “We don’t know how many houses will be vacated, the timeframe for work to be carried out, or if any owners, are likely to be assisted by a family member who owns a rented property, that would have to be vacated by a sitting tenant. The only thing that seems certain right now is increased competition in the private rented market which will most likely cause particular problems for households on low income in search of a new home.”
“In the longer term, North West Simon Community believe that the solution to homelessness is a home, and there is an acute shortage of affordable rental properties in the region at present. On January 5th 2022, an online search by North West Simon Community identified 55 properties available to rent in the North West region – 28 in Donegal, 14 in Leitrim, and 13 in Sligo. The lowest monthly rents sought for one or two bed properties were €550 in Leitrim, €580 in Donegal, and €700 in Sligo. After paying this level of rent, a single person receiving Housing Assistance Payment would have a disposable income between €22.13 and €23.20 per day depending on where they lived”.
The Monthly Homelessness Report for November 2021 reveals an ever-deepening homelessness and housing crisis in the North West. Ninety individuals accessed Local Authority managed emergency accommodation in the North West during the week of 22-28 of November, 2021. The 65 households consisted of 62 single adults and 8 families comprised of 11 adults and 17 children. The statistics show no change overall, either month on month or year on year.
