To ask the Minister for Communities (i) what discussions have taken place with the Housing Executive to support leaseholders who are struggling to afford planned maintenance and refurbishment scheme costs as ordered by the Housing Executive under the right-to-buy scheme; and (ii) what action he has taken to create a sinking fund similar to what happens in the private sector given that no adequate facility is currently in place.

My officials have been working with the Housing Executive (NIHE) for some time, not only on the matter of supporting leaseholders but also in relation to the fact that if a number of leaseholders are not able to pay for the planned works this has the potential to block much needed work to NIHE tenanted properties.

With this in mind, DfC and DoF have given approval to the Housing Executive to offer buy back with vacant possession option to leaseholders if the cost of the works is over £10k.

When delivering Planned Scheme works, Housing Executive (NIHE) advises leaseholders of the estimated costs of works in advance of commencement of the scheme on site. The NIHE also offers leaseholders the opportunity to pay into a Planned Scheme account for these works, in advance of receiving the final invoice when works are completed. I can advise that the Housing Executive is continuing to consider the issue of leasehold properties.

The Housing Executive has advised the standard Flat Lease by virtue of which all Housing Executive flats/maisonettes are sold under the statutory House Sales Scheme, empowers but does not compel the Housing Executive to create a reserve to finance future capital costs. When the sale of flats commenced around 1983 the Housing Executive did not elect to create such a reserve and no contributions to such a reserve have ever been included in the Service Charge which is collected from Leaseholders.

The Housing Executive does not currently have any proposals to ask Leaseholders to contribute to the creation of a reserve fund for those of its blocks which contain sold flats. In the short to mid-term there are already major planned scheme works scheduled, which would mean Leaseholders would have to make a contribution towards the cost of future potential works at the same time as having to make payment for works that have already been carried out.