The Health Service Executive (HSE) has decided to give the two largest homeless hostels in Dublin to the Catholic lay organisation, the Legion of Mary, after an independent evaluation found they were below minimum standards and were served with fire safety notices.
Despite being the landlords the HSE had no role in service provision in the hostels, which continue to be managed by the legion.
The 100-bed Regina Coeli (women and children) and the 50-bed Morning Star (men) hostels on Morning Star Avenue in the north inner city are estimated to be worth up to €20 million.
The Homeless Agency - the statutory body charged with ensuring quality services for homeless people - has said it is concerned about the transfer of the properties from the State to the legion and about how basic standards for homeless people using the hostels are to be enforced.
Concerns were expressed to the chief executive of the HSE, Prof Brendan Drumm, in a letter dated March 7th, deputy director of the agency, Daithí Downey, said.
Brian Gilroy, national estates director with the HSE, told The Irish Times the decision had been taken by the HSE board on February 1st to "dispose of" the hostels. The two drivers behind the decision had been cost and a desire to gain some leverage on service quality over the legion.
He said the legion had a "very unusual" rent-free lease, agreed between the State and the founder of the legion, Frank Duff, in 1922, whereby the State received no income, while the HSE had been paying all utilities of about €100,000 a year.
"The legion had an indefinite right to renew the lease every 35 years. We had the right to sell the properties but we would have had to compensate them or provide a new premises on the same terms."
The HSE had had "absolutely no say" in the quality of service, while now it had some leverage, he said.
While most homeless service providers depend on statutory funding and must comply with minimum standards, the legion receives no funding. Apart from fire safety, environmental and health and safety officers, no one has a right to inspect its premises.There is no licensing system for homeless shelters.
This anomaly came to the fore last year when the Homeless Agency commissioned two independent housing consultants to evaluate all emergency accommodation in Dublin.
The legion initially refused to participate but in September agreed. One of the consultants, Simon Brook, assessed the two hostels and found them not to reach minimum basic standards under 21 headings, including health and safety, food service and provision and accommodation.
He also became concerned about fire safety and called in Dublin Fire Brigade. The brigade confirmed that fire safety notices were issued to the HSE last December.
Bringing the hostels up to fire safety standard would have cost the HSE €3 million, said Mr Gilroy.
At a hearing in the Circuit Court in January, on foot of the fire safety notices, an agreement was reached where the HSE would hand freehold of the hostels to the legion, with two covenants attached. "The legion must provide 'quality charitable services' within six months and, if the legion ever sells the land, half the money comes back to the HSE," he said.
Declan Lawlor, trust officer with the de Montfort Trust (the legal entity of the legion), said it would be making a major capital investment in the hostels, and was engaging architects and fire consultants.