Probe after council left residents in legal limbo
More than a dozen residents in the Hollyhill Heights estate on Cork’s northside are furious because they have been paying ‘dead’ rent money for two years after entering into what the city council told them would be a temporary rental arrangement lasting about a month.
Two years on, the affected residents still do not have the deeds to the houses.
Some have invested up to €30,000 furnishing and decorating in the properties.
They have been paying home insurance and have been hit with hefty legal fees.
Despite the investments, some are so frustrated with the problems that they are planning to walk away and rent privately.
It is understood that officials from the Local Government Ombudsman’s office will interview senior city officials next week as part of the investigation.
It was launched on foot of a complaint from one of the residents.
The homes in Hollyhill Heights were built by McInerny builders on VEC land as part of a council initiative.
After five months on a waiting list, one person, who declined to be named, was among a group offered a house in January 2007 under the affordable housing scheme.
The two-bedroom townhouse was valued two years ago at €230,000 with a purchase price of €167,000 under the scheme.
He paid a deposit and agreed to a Temporary Convenience Letting (TCL) which the council told him would last a few weeks.
He agreed to pay €€100 a week while issues around the transfer of deeds were finalised.
However, he didn’t pay the charge for a year but has since paid off all his €11,400 arrears. But he still does not have the deeds to his house.
The issue was raised at a council meeting on Monday by Sinn Féin Cllr Jonathan O’Brien.
He called on the council to cap the affected residents’ TCL liability to €2,000, and allow the remainder owed to be off-set against mortgage repayments.
“What happened here is bordering on criminal. Somebody has to be held to account,” he said.
“These tenants signed contracts in good faith and they are being made pay for mistakes not of their making.”
Fianna Fáil’s Damian Wallace said given the drop in property prices, the council should negotiate a more realistic price for the homes.
Fine Gael’s Joe O’Callaghan said a suitable form of redress should be made available to those affected. “We as a council didn’t do what we should have done,” he said.
Senior housing official, Damien O’Mahony, described the delay as regrettable. “The city council entered into the deal in good faith but title problems arose outside the control of the council,” he said.
The council had no option but to collect the TCL rental, he said.
“The rent was a modest figure to service the loan the council entered into in the first place, but it only goes some way towards meeting that.”
He said it would be inappropriate for the council to preempt the Ombudman’s decision and take action now.
He also said that while the Ombudsman’s adjudication is not binding, he is not aware of any situation where the council has not adhered to the decision.
