Dáil Éireann Debate, Tuesday - 30 June 2020
893. Deputy Cian O'Callaghan asked the Minister for Housing, Planning and Local Government the numerical definition of an affordable house used by his Department; and if he will make a statement on the matter. [13395/20]
View answerI assume the Deputy is referring to the income levels that would define eligibility in the case of affordable dwelling purchase arrangements under Part 5 of the Housing (Miscellaneous Provisions) Act 2009.
The main eligibility criteria for an Affordable Dwelling Purchase Arrangement under Part 5 is that the net income of the applicant household be such that the repayments on a (90%) mortgage for the purchase of a suitable home at market value would exceed 35% of that net income. As such, and in the case of dwellings that any housing authority is advertising for sale under the affordable purchase scheme, it will be possible for the authority to express eligibility as a simple income limit in each case.
If the household's repayment on a mortgage for a suitable dwelling would not exceed 35% of net household income, then that household would not be deemed eligible to apply for an affordable home under the scheme.
Further Regulations are currently being drafted under Part 5 to prescribe a definition of income and the interest rate and mortgage duration to be used in making the above calculation. When the operational procedures for the scheme are finalised, and before dwellings are made available for purchase under the scheme, a programme of communication will be undertaken by my Department and local authorities.
