A question mark hangs over tenants who inherited rent-controlled tenancies from family members in the past 20 years.

On July 26th certain protections under the 1982 Housing Act will cease and some of these tenants will lose their tenancies or be forced to pay market rates.

The right of the original 1982 tenants and their surviving spouses to live in the property for their respective lifetimes paying the agreed rent remains unchanged.

Mr Kieran Murphy of Threshold estimates that there could be at least 600 controlled dwellings occupied by second generation tenants and at least half of these could lose their protection under the 1982 Act next July.

"From our experience, the people in this group are mostly older, single people on a low income, living alone.

"There is a disproportionate number of vulnerable people in this group and they are paying rent significantly below the market rate," according to Mr Murphy.

The 1982 Act was passed to replace rent-control legislation that the Supreme Court ruled unconstitutional.

The Oireachtas moved to protect tenants and their families who were living in such dwellings (usually an unfurnished flat in an older building) at the time.

It provided some security of tenure and limited rent control for 20 years. The rent was set by a Rent Tribunal, taking into account the income of the landlord and tenant.

The Department of the Environment estimates that there are at least 1,700 controlled dwellings, mostly in Dublin and Cork.

At a recent Law Society Seminar to discuss the fate of the tenants, solicitor Ms Aine Ryall said there would be a period of uncertainty for landlords and tenants after July, until the situation was regularised by the courts.

The status of the family members depends on when they take over the tenancy. Where the death of the original tenant or surviving spouse occurs after July 26th this year, a family member living in the house or flat has no entitlement to succeed to the tenancy.

However, where the death occurs before July 26th, 2002, the resident family member will enjoy the protection of the 1982 Act for five years from the date of death.

Where the family member has already succeeded to the tenancy, the entitlement to retain possession expires on July 26th, or after a minimum period of five years, whichever is later.

Any successor tenants whose original tenant relative died more than five years ago is in a difficult position.

So what will happen to those family members who lose their tenancy rights in July? They will have two main problems - security of tenure and affordability. The State can offer some assistance with rent, provided some conditions, including a means test, are met.

Under the existing system, these tenants might lose their entitlement to rent allowance as it is normally only paid where a tenant has a legally enforceable tenancy.

Both the Department of the Environment and Local Government and the Department of Social, Community and Family Affairs are developing proposals to deal with these issues, including possible changes to the rent allowance scheme to cater for hardship cases.

Tenants in the private rented sector may qualify for a weekly or monthly rent supplement under the Supplementary Welfare Allowance (SWA) Scheme administered by the Health Boards. Some 46,000 are in receipt of this payment but it is strictly means-tested and subject to maximum rent levels and other restrictions.

Mr Brian O'Raghallaigh of the Department of Social, Community and Family Affairs said tenants of formerly controlled dwellings could qualify for the SWA scheme on the same basis as other tenants.

However, "unless they have a similar profile to other SWA recipients, Rent Supplement may not meet their needs."

Mr O'Raghallaigh is confident that his Department will have the necessary social welfare changes in place in time to meet the needs of the people affected.

It may be necessary to resort to the courts to clarify the issue of tenure. A family member who has clocked up more than 20 years' continuous occupation of a house or flat, either in their own right or through the occupation of the original tenant, is entitled to apply for a fixed-term tenancy of up to 35 years under the Landlord & Tenant (Amendment) Act 1980.

Ms Ryall emphasises that if the landlord and tenant cannot reach an agreement, the Circuit Court would have to set out the terms of the new tenancy. The landlord could refuse on broad grounds, including development plans for the property.

This year's changes open up the possibility for property owners to dispose of or develop property that has been unprofitable for years.

Where a landlord successfully gains possession of a formerly controlled dwelling, compensation would have to be paid to the tenant. The maximum compensation is three years rent of alternative accommodation.

How can successor tenants prepare for the stressful changes coming this summer? It is expected that the Government departments involved will make a move on the legal position in the coming weeks. That will help clarify the status of the tenants and the level of State assistance they can expect. Then they can worry about their landlord's plans and possible legal costs.

Mr Murphy of Threshold is concerned that some successor tenants do not know that they are successor tenants and may get a letter to vacate in a few months. "The Government needs to start a publicity campaign so that the tenants are aware of their position and can do something about it," he says.