LOUTH LOCAL AUTHORITIES
LOUTH COUNTY COUNCIL, DROGHEDA BOROUGH COUNCIL
& DUNDALK TOWN COUNCIL
HOUSING RENTS SCHEME, 2011
1.
Effective Date
This scheme will apply with effect from week commencing 17th April 2011.
2.
Income Related Rents
(a)
Rent on dwellings let on Income Related Basis will be calculated in
accordance with clause 3 below as a proportion of the assessable
principal household income (as defined below) together with a
contribution from subsidiary incomes in the household.
(b)
Assessable Income is income from the following sources,
assessed in full but reduced by pay-related social insurance
contributions and any income tax payable, universal social charge
or pension levy on such income.
(i)
Basic weekly income from employment, including self-employment
and all regular allowances (excluding overtime).However in respect
of Community Employment Scheme and Back to Work Allowance
the relevant guidelines from the Department of Environment,
Heritage and Local Government will apply.
Self-employment
income will not be deemed to be below the basic social welfare
income for the equivalent household size.
(ii)
All social welfare payments, Health Service Executive allowances,
including training allowances and other regular payments including
maintenance payments, pensions but excluding monthly child
benefits, fostering allowance and fuel allowance.
(iii)
Where a tenant is paying maintenance on foot of a court order or
legally binding agreement, and produces proof of such payment on
a quarterly basis, that element of net income will be disregarded for
rent assessment purposes.
(c)
Principal Household Income is the aggregate income of the
Tenants in the case of a joint tenancy or the aggregate income of
the Tenant and spouse / partner (if any) in the case of a single
tenancy.
(d)
Basic Rent is the rent calculated in accordance with the terms of
this Scheme on the Principal Household Income.
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(e)
3.
Subsidiary Income is all other household income not included at
(c) above.
Calculation of Basic Rents
(a)
The Basic Rents of dwellings let on an Income Related Basis will be
determined by reference to the following scales of assessable
income (calculated in accordance with clause 2 above) to which the
allowances for dependent children and rent percentages hereunder
should be applied.
Assessable Principal Weekly
Income of Household
_________€______________
Rent
Percentage
_________
(1)
Up to €253.99
11%
(2)
€254– €306.99
13%
(3)
€307 - €373.99
15%
(4)
€374 or over
16%
(b)
Dependant Children
An allowance of €15.00 per child shall be made for dependant
children.
A dependant child is any child who is under 18 years of age and
has no independent means, or who being under 21 is attending a
full-time course of education and is wholly or mainly maintained by
the Tenant(s).
4.
Limits on Rent Increases in Basic Rents
In general and subject to clause 6, existing basic weekly rents shall not be
increased by more than the following amounts where there has been no
material change in household circumstances.
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Assessable Weekly Income
Up to €253.99 (living alone)
Up to €253.99 (living with others)
€254 - €372.99
€373 - €450.99
€451 - €484.99
€485+
Max. Increase
€4.50
€5.00
€6.50
€9.00
€10.50
€12.00
Where there has been a material change in household circumstances,
such as:
A change in employment status
Additional principal earner
Other significant income increases
Basic rents shall not increase by more than €45.00 per week.
5.
Subsidiary Income
In addition to the basic rent in respect of the principal household income,
one-seventh of the assessable portion of each subsidiary income shall be
added, subject to a maximum contribution of €19.00 from each subsidiary
income.
6.
Minimum Rent
Subject to clause 8, the minimum weekly rent of any house shall be
€25.00.
7.
Hardship Clause
In exceptional circumstances where payment of a rent calculated in
accordance with this Scheme would, in the opinion of the Local Authority,
give rise to hardship, the Authority may agree to accept a lesser sum from
the Tenant subject to review from time to time.
8.
Special Clause
The Council may, in its absolute discretion, determine a higher rent than
that provided for in this scheme where in its opinion this would be justified
on account of an exceptionally high household income in any individual
case.
9.
Review of Income
(i)
The Tenant must notify the Local Authority immediately of any
changes in household income or in family circumstances, which
would effect the rent calculation.
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10.
(ii)
Where a Tenant fails to submit income / household details when
requested by the Local Authority, the rent will be automatically
increased by €45.00 per week with effect from the commencement
date of this scheme or not later than 4 weeks from the date on
which the information was requested whichever is appropriate.
(iii)
Where the required particulars, i.e. Differential Rent Forms, are
furnished after the scheme commencement date, any rent
adjustment arising which would result in a higher / lower rent
than that currently being charged will be applied
retrospectively with effect from the scheme commencement
date.
(iv)
Where the Local Authority becomes aware of a change in
income / circumstances which requires notification under (i)
above, and such notification has not been given as required,
any rent adjustment resulting in an increased / decreased rent
will be applied with effect from the date on which such change
in circumstances occurred.
Fixed Rents
All fixed rents should be reduced to €60 per week with effect from
commencement of this new scheme. Tenants on fixed rent will be offered
the option of going on to Income Related Rent. This should ensure that
rent increases will not entail hardship in any case.
11.
Rounding Up and Down
Where the rents (fixed and income related) calculated in accordance with
the preceding paragraphs are not multiples of 50c they shall be rounded
up or down to the nearest 50c.
I hereby approve the above scheme on behalf of Louth County Council:
___________________
Director Of Service
___________________
Date
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