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Dáil Éireann debate -
Tuesday, 7 Nov 2000

Vol. 525 No. 2

Written Answers. - Affordable Housing Scheme.

John McGuinness

Question:

690 Mr. McGuinness asked the Minister for the Environment and Local Government if it is his intention to remove or reduce the claw-back clause in relation to affordable or voluntary housing; his views on whether the period of 20 years in this clause is considered to be excessive; if, in the case of a company (details supplied) in County Carlow, the clause can be waived in view of the fact that its planning was almost completed prior to the introduction of the clause. [24605/00]

The affordable housing scheme, which provides for the sale to eligible purchasers of houses at a discount from the market value, includes provision for a claw-back. As part of the measures to increase the supply of affordable housing set out in Action on Housing, I introduced a site subsidy for houses provided by local authorities under the affordable housing scheme and also in respect of new houses sold by local authorities under the shared ownership scheme. I also brought the provisions of the claw-back under the affordable housing scheme in line with the claw-back provisions under Part V of the Planning and Development Act, 2000, and I extended those provisions to the shared ownership scheme for new houses sold by local auth orities at a discount from market value. A claw-back provision in the terms of the sale of sites scheme operated by local authorities, where such sites are sold at less than their market value was also introduced.

The provision of a subsidy financed from public funds is necessary to enable eligible households to attain home ownership while the provision for a claw-back is also necessary to ensure there is no short-term profiteering on the resale of a subsidised house or site. In the particular case referred to by the Deputy the sites with a market value of £20,000 are being sold under the sale of sites scheme at a discounted cost of £3,000 per site, that is, at a discount of 85% on the current market value.

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