Tuesday, 17 July 2012

Questions (475)

Michael McGrath


487 Deputy Michael McGrath asked the Minister for the Environment, Community and Local Government his plans to rescind the clawback clauses that apply in respect of affordable home contracts in view of the collapse in property prices; and if he will make a statement on the matter. [35189/12]

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Written answers (Question to Minister for the Environment, Community and Local Government)

To take account of the current housing market conditions, the Government's housing policy statement, published in June 2011, announced the standing down of all affordable housing schemes in the context of a full review of Part V of the Planning and Development Act 2000. That review is now underway and it is expected to conclude later in the year. Any future changes to legislation governing affordable housing schemes will be informed by the review. The claw-back provision is intended to prevent short-term profit taking on the resale of the house to the detriment of the objectives of the schemes. However, where a person is selling and the clawback amount payable would reduce the proceeds of resale below the initial price actually paid, the legislation provides for the amount of the clawback payable to be reduced to the extent necessary to avoid that result.