Affordable Housing Act 2021

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:

E18

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).