Dáil Éireann Debate, Wednesday - 4 December 2013
115. Deputy Stephen S. Donnelly asked the Minister for the Environment, Community and Local Government if there is any recourse in the case of a person (details supplied) who bought apartments from the Dublin Docklands Development Authority, under the affordable housing scheme in 2009, which have subsequently fallen considerably in value. [52151/13]
View answerSince the introduction of affordable housing schemes in 1999 qualifying applicants were enabled to become home owners through purchase of designated affordable units, including through the shared ownership scheme. This involved the purchaser entering into a shared ownership lease with the local authority on a property at a significant discount from market value. In these cases, as with all affordable housing sales, a clawback was introduced to prevent short-term profit taking on the resale of the house to the detriment of the objectives of the schemes.
While it is not appropriate for me to comment on individual cases, I fully recognise that affordable home owners are in many cases impacted by the downturn in the same way as other home owners, for example, in consequence of unemployment and possible negative equity. In such cases borrowers should actively engage with their lenders, whether a commercial financial institution or a local authority, to seek to avail of one of the options available to provide sustainable solutions to distressed mortgages. In this regard the mortgage arrears resolution process already in place in respect of commercial mortgages is now being implemented across all local authorities. In cases of acute mortgage distress homeowners also have the option of seeking to avail of the legal process now also in place to deal with personal insolvency.
A review of the operation of the shared ownership scheme is currently under way and further guidance and clarification will issue from my Department to local authorities shortly as a consequence of this review process.
