Council forgave rent arrears of €14.4k on just one property
Waterford Council forgave €14,400 in rent arrears and paid legal fees of €26,000. Photo: iStock
In a recent audit carried out by Waterford City and County Council, it was revealed that the council forgave rent arrears of €14.4k on just one social house.
The former Waterford County Council agreed to construct a social house on a site provided by the tenant. Ownership of the site was supposed to have been transferred from the tenant to the Council in exchange for the construction of the house.
According to the report, the tenant occupied the house and paid rent for a period. It continues: “However, payment ceased when it emerged that the site had not been transferred. Substantial rent arrears accumulated over a considerable period before legal action commenced.”
In total, this legal dispute cost the council a little over €40,000; they forgave €14,400 in rent arrears and paid legal fees of €26,000. The net loss to the council was €6,000 because they agreed to a settlement of €32,800.
In the audit, the Chief Executive responded that: “This is a legacy file” and that “Council is satisfied that the agreement reached was the outcome of a legal process.”
