Tenant Purchase Scheme Eligibility

Dáil Éireann Debate, Tuesday - 21 March 2017

Tuesday, 21 March 2017

Questions (415, 440)

Jan O'Sullivan

Question:

415. Deputy Jan O'Sullivan asked the Minister for Housing, Planning, Community and Local Government the rules and flexibility applying to the tenant purchase scheme in relation to the amount that can be paid by way of a lump sum in conjunction with the portion that is liable by way of mortgage; the length of time a member of a household must be named on the tenancy before their income can be taken into account in the purchase of the house; and if he will make a statement on the matter. [13123/17]

Patrick O'Donovan

Question:

440. Deputy Patrick O'Donovan asked the Minister for Housing, Planning, Community and Local Government when is it likely to have a new revised tenant purchase scheme in place that takes into account savings that persons that are retired might have; and if he will make a statement on the matter. [13384/17]

Written answers

Minister for Housing, Planning, Community and Local Government

I propose to take Questions Nos. 415 and 440 together.

The Tenant (Incremental) Purchase Scheme came into operation on 1 January 2016. The Scheme is open to eligible tenants, including joint tenants, of local authority houses that are available for sale under the Scheme. To be eligible, tenants must meet certain criteria, including having a minimum reckonable income of €15,000 per annum and having been in receipt of social housing support for at least one year.

The funding of the purchase price is a separate matter from the reckonable income criteria for the scheme. In relation to funding of the purchase price, a tenant may fund the purchase from one, or a combination of, his or her own resources or a mortgage provided by a financial institution or a local authority house purchase loan.

Under Part 3 of the Housing (Miscellaneous Provisions) Act 2014 the tenant, or in the case of joint tenants, one of the tenants must have been in receipt of social housing support for a minimum period of one year on the date of making the application to purchase. A housing authority shall not sell a house to a tenant where, in the three years prior to applying to purchase, he or she or a household member was in arrears of rent, rent contributions, charges, fees or any other monies owing to a housing authority for an accumulated period of more than 12 weeks in respect of a dwelling or site provided as social housing support. Under the legislation there is no provision given for a specified length of time required to be a joint tenant for purposes of a tenant purchase application.

In line with the commitment in the Programme for a Partnership Government, and reaffirmed in the Rebuilding Ireland Action Plan for Housing and Homelessness, a review of the first 12 months of operation of the scheme is currently being conducted by my Department. To inform the review a public consultation was undertaken during January/February of this year. Any changes to the terms and conditions of the scheme which are considered necessary based on the evidence gathered at that time will be brought forward.

I expect the review to be completed in the coming weeks.