Bid to determine 'appropriate rent' for residents at independent living facility

Affordable housing charity has announced major hikes for tenants of Nazareth Village in Sligo

Minister for housing James Browne confirmed the Housing Agency was working with Sligo County Council to determine 'an appropriate rent in the circumstances'. Picture: Stephen Collins

The Housing Agency is working to determine an “appropriate rent” for residents of an independent living facility in Sligo, after an affordable housing charity announced major hikes for tenants.

Nazareth Village has 48 independent living social housing units for people over the age of 65.

One resident is facing an increase in their rent of 176%.

Other residents are facing a 66% increase in their rents, rising to €145 per week, according to local Labour councillor Ann Higgins.

Funding for the properties was provided by the Government’s Capital Assistance Scheme, giving 100% of the funds to support Approved Housing Bodies (AHBs) to deliver priority need housing, such as age-friendly housing.

As part of that scheme, housing minister James Browne said rents must be set at a “reasonable level having regard to tenants' incomes and the cost of managing and maintaining those homes”.

“Such a rent is considered an 'economic rent', and AHBs must consult with the respective local authorities when setting and reviewing same,” he said.

While Mr Browne said he cannot comment on rent setting by AHBs, he confirmed the Housing Agency was working with Sligo County Council to determine “an appropriate rent in the circumstances”.

Comments from Mr Browne came in response to a parliamentary question from Labour’s housing spokesperson Conor Sheehan.

Ms Higgins said that while the rent increase has been paused, residents are in “an awful state” over the plan.

“They simply can’t afford it because they’re all on the old age pension… They don’t have the money to pay for this rent increase,” Ms Higgins said.

The Labour councillor said residents were informed the hikes were due to increased management costs associated with the social housing units.

She added that one resident of Nazareth Village had submitted a complaint to the Residential Tenancies Board over the proposed rent hikes.

Ms Higgins questioned the regulation of the sector, questioning why it would be permissible for them to seek to hike rents by such high margins.

“It raises a lot of issues about regulation of AHBs,” Ms Higgins said, adding that she did not believe they were providing value for money for the State.

In his response, Mr Browne said there is a process under way to consider the management and maintenance of social homes by AHBs, following on from recommendations within the AHB strategic review.

Nazareth Housing Association has been contacted for comment.