Dáil Éireann Debate, Tuesday - 11 May 2004
395 Mr. S. Ryan asked the Minister for the Environment, Heritage and Local Government the clawback which is due to the local authorities in the event of the death of a recipient of a shared ownership house who is repaying the full mortgage and who has made a will. [13502/04]
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The shared ownership scheme is designed to facilitate access to full home ownership in stages by persons who cannot afford this immediately. The applicant initially acquires a share, minimum of 40%, in a house and rents the remainder from the local authority, with an undertaking to acquire the remaining equity within a 25 year period. The applicant's share in the ownership of the house is normally paid for by way of a cash deposit and a local authority mortgage loan.
Under these arrangements, loan repayments relate not to the full equity value of the house but only to the amount purchased through the mortgage. Applicants are also expected to take out mortgage protection insurance in respect of their share, which in the event of death, would pay off the associated outstanding mortgage commitments.
In most cases site subsidy does not arise in shared ownership transactions and therefore a clawback does not apply. Where, however, the local authority has originally provided the house at a discount from market value through payment of a site subsidy and the purchaser proposes to purchase the remaining equity from the local authority or sell or dispose of his or her equity in the house within 20 years of the date of the shared ownership lease, the purchaser must refund to the local authority a percentage of the proceeds of the sale of the house, that is, a clawback. The percentage of the proceeds to be repaid will be related to the proportion of discount originally received from the local authority. A full refund must be paid if the house is sold within the first ten years of occupancy. A reduction of 10% per annum is given for each full year of occupancy between ten and 20 years and after 20 years of full occupancy no refund would be due to the local authority.
The general terms of the shared ownership scheme, as outlined above, are governed by the 1992 and 2002 Housing (Miscellaneous Provisions) Acts. The application of these in individual cases is dealt with through the terms of the particular leasing agreement between the local authority and the householder. Detailed questions regarding individual circumstances under the shared ownership scheme may therefore be appropriately addressed to the local authority.
396 Mr. Morgan asked the Minister for the Environment, Heritage and Local Government the number of new houses expected to be built in Dublin in each of the next five years; and the proportion of these which will be for social and affordable housing. [13503/04]
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The National Development Plan 2000-2006 estimated that housing demand would translate into a requirement for an additional 500,000 houses to be built in the ten years to 2010, that is, 50,000 per year. The measures introduced by this Government to boost supply are having effect. The NDP targets are being met with almost 229,000 units built in the four years since 2000. The year 2003 was the ninth successive year of record housing output with house completions at 68,819 units, up 19.3% on the previous year.
Last year also saw a 14% increase in house completions in Dublin, to 14,394 units, and an increase of 10.5% in the greater Dublin area, to 22,852 units.
The Government is committed to continuing with measures to boost the supply of housing and ensuring that the demand for housing is met in a sustainable manner. The Government is also concerned to ensure that the broad spectrum of housing needs is met, and remains committed to continuing with measures to assist low-income groups and those with social housing needs by means of a range of targeted social and affordable housing programmes. There has been substantial growth in investment in housing. The capital spending provision in 2004 at over €1.8 billion is four times the level of investment in 1997. It is anticipated that the housing needs of around 13,000 households will be met in 2004 through the full range of social and affordable housing measures.
Local authorities, including those in Dublin, have been asked to develop new five-year action plans to deliver across the full range of social and affordable housing programmes and supporting measures for the period 2004 to 2008. The action plans will be based on the overall analysis of need and should be consistent with the relevant housing strategy, subject to any necessary updating. The plans will outline the proposed response in terms of new social and affordable housing, Traveller accommodation, and the housing needs of the elderly, people with a disability and the homeless. They will also address regeneration and remedial works together with the proposed arrangements for management and maintenance of the local authority housing stock.
The plans are to be submitted to my Department by the end of this month and will be agreed later this year.
