Dáil Éireann Debate, Tuesday - 27 July 2021
599. Deputy Eoin Ó Broin asked the Minister for Housing, Local Government and Heritage if there is consideration of home extensions which significantly increase the value of the property in calculating the clawback in cases in which a person who purchased their home via the current incremental purchase scheme opts to sell the property before the 20 year clawback period. [39185/21]
View answerThe 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.
Part 3 Section 26 of the Housing (Miscellaneous Provisions) Act 2014 sets out that the relevant local authority will place a charge on the house sold under the scheme. This charge will be equal to the discount received the price of the house and will remain in place for 20, 25 or 30 years (depending on the discount given).
Part 3 Section 29 of the Housing (Miscellaneous Provisions) Act 2014 provides for the resale of a property. Where a purchaser proposes to sell a house during the charged period, he or she shall give prior written notice to the housing authority in accordance with the terms and conditions specified in the transfer order.
Where a purchaser resells a house to a person other than a housing authority during the charged period, the purchaser shall pay to the housing authority concerned the value of the outstanding charged share in the house on the date of resale of the house, which is calculated by applying that share to the relevant market value of the house. An allowance equal to the amount of the market value attributable to material improvements can also be applied.
Where a tenant purchase applicant disputes a housing authority’s market valuation of a house, the market value or relevant market value, as appropriate, shall be determined by an independent valuer nominated by the purchaser from a panel of valuers drawn up by the authority and with the qualifications set down in Regulation 16, with the purchaser meeting the cost of the valuation.
