Dáil Éireann Debate, Tuesday - 23 September 2014
483. Deputy Terence Flanagan asked the Minister for the Environment, Community and Local Government his views on a matter (details supplied) regarding the affordable housing scheme; and if he will make a statement on the matter. [35256/14]
View answerAs announced in the Government’s 2011 Housing Policy Statement, all affordable housing schemes have been stood down in the context of a full review of Part V of the Planning and Development Act 2000. The Part V Review, carried out by the Housing Agency at my Department’s request, has been completed and will be submitted to Government shortly. It is anticipated that any legislative changes required on foot of the review will, subject to Government approval, be incorporated into the General Scheme of a new Planning Bill, which is expected to be published shortly.
The allocation of an affordable home is made on the basis that an individual is in need of housing, is a first time buyer, cannot afford to purchase privately on the open market but can service a mortgage obtained by loan through an approved financial institution or a local authority where private finance has been refused. While the terms and conditions of the various affordable housing schemes and the regulations governing local authority loans do not prohibit an affordable home owner from renting a spare room in his/her home, a local authority may attach conditions to the contract with the purchaser pertaining to subletting of the unit and its use by the purchaser as his/her normal place of residence.
In order to prevent short-term profit taking on the resale of the house to the detriment of the objectives of the schemes, houses sold to first time buyers under the various affordable housing schemes, at a significant discount from market value, contain a clawback provision. However, where a person is selling an affordable home 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. A breach of contract conditions would be a matter for a local authority to pursue as it considers appropriate given the particular circumstances involved. The administration of the various affordable housing schemes in any particular case is a matter entirely for the relevant local authority.
