Dáil Éireann Debate, Tuesday - 27 July 2021
771. Deputy Richard Bruton asked the Minister for Housing, Local Government and Heritage when he plans to publish regulations that would permit a local authority to draw up a scheme for the allocation of affordable homes; if the same scheme will apply to affordable homes acquired from a Part V quota, an LDA project or a development of affordable homes on the council’s own lands; and if he will make a statement on the matter. [41111/21]
View answer772. Deputy Richard Bruton asked the Minister for Housing, Local Government and Heritage if affordable homes built with the help of the grant from his Department or an acquisition by the LDA of sites at values consistent with affordable pricing will all be sold at a uniform price to all successful applicants; if successful applicants with a lower capacity to finance a mortgage can in addition avail of the shared equity scheme; and if he will make a statement on the matter. [41112/21]
View answerI propose to take Questions Nos. 771 and 772 together.
The Affordable Housing Act 2021 was enacted by the President on 21 July 2021. This Act is the first ever standalone affordable housing legislation, establishing a basis for four new affordable housing measures. These measures will deliver on the Programme for Government commitment to put affordability at the heart of the housing system and prioritise the increased supply of affordable homes through (1) delivering affordable homes on local authority lands, (2) the introduction of a new form of tenure in Cost Rental, (3) a new affordable purchase shared equity scheme and (4) expanding Part V planning requirements to increase the 10% contribution requirement to 20% and to apply it to cost rental as well as social and affordable housing.
It is my intention to commence the provisions of the Affordable Housing Act in the near future. In this regard, the required regulations to implement these measures including eligibility etc. are being progressed on a phased basis by my Department officials and will be finalised over the coming weeks.
In this regard, I can confirm, that in respect of Part 2 of the Act and the sale of affordable homes, it is envisaged that direct sales agreements will specify the purchase price at which the dwellings can be made available to eligible purchasers. This may vary in accordance with individual affordability i.e. the borrowing capacity/purchasing power of the individual eligible purchasers, which is related to incomes.
The minimum price for which a dwelling may be sold will be determined by the local authority and would be influenced by development costs including supports such as the Affordable Housing Fund (which replaces the Serviced Sites Fund).
Local authorities will take an equity stake in the home equivalent to the “affordable dwelling contribution”. This is essentially the discount from market value and the percentage that discount represents of market value will be the percentage equity share the local authority takes in the dwelling. The amount of the contribution will be the amount needed to bridge the gap between what the applicant can borrow under the macro-prudential rules and the market value of the home (subject to the proviso that there will be a minimum price below which the housing authority cannot sell the unit).
