Dáil Éireann Debate, Tuesday - 26 July 2022
720. Deputy Brendan Griffin asked the Minister for Housing, Local Government and Heritage if he will address an anomaly in the local authority house purchase loan scheme preventing joint tenants (details supplied) from accessing a loan to purchase their social house due their age and tenancy composition; and if he will make a statement on the matter. [41039/22]
View answerThe Local Authority Home Loan is a Government backed mortgage scheme for those on modest or low incomes who cannot get sufficient funding from commercial banks to purchase or build a home. It has been available nationwide from local authorities since 4 January 2022 for first-time buyers and fresh start applicants. The loan can be used both for new and second-hand properties, or to self-build. It also includes the purchase of homes through State schemes such as the Tenant Purchase Scheme and Affordable Purchase Scheme, with the exception of the First Home Scheme.
To be eligible for the Local Authority Home Loan, as with any mortgage, all persons involved in the purchase must be named on the mortgage and must all be eligible for the scheme as set out below:
- be a first-time buyer
- be aged between 18 and 70 years
- be in continuous employment for a minimum of two years, as the primary earner or be in continuous employment for a minimum of one year, as a secondary earner
- single applicant must have an annual gross income of not more than €65,000 (gross) in counties Cork, Dublin, Galway, Kildare, Louth, Meath and Wicklow and be earning under €50,000 (gross) in all other counties
- joint applicants must have an annual gross income of not more than €75,000 (gross) in all counties
- submit two years certified accounts, if self-employed
- provide proof of insufficient mortgage offers of finance from two regulated financial providers
- not be a current or previous owner of residential property in or outside the Republic of Ireland, unless you are a "Fresh Start" applicant
- occupy the property as your normal place of residence
- purchase or self-build a property situated in the Republic of Ireland
- purchase or self-build a property which does not exceed the maximum market value applicable for the county in which it is located
- consent to a Central Credit Register check
- currently have a legal right to reside and work in the State and be able to demonstrate that they are habitually resident in Ireland
Section 63(3) of the Local Government Act 2001 provides that, subject to law, a local authority is independent in the performance of its functions. Section 6 of the Housing (Miscellaneous Provisions) Act 2009 specifically provides that the Minister's power to issue policy directions and guidelines to housing authorities in relation to their housing functions should not be construed as enabling the Minister to exercise any power or control in relation to any individual case with which a housing authority is or may be concerned. I am, therefore, precluded from intervening in relation to individual cases.
The final decision on loan approval is a matter for each local authority and its Credit Committee on a case-by-case basis. Decisions on all housing loan applications must be made in accordance with the statutory credit policy that underpins the scheme, in order to ensure consistency of treatment for all applicants.
Further information on the scheme is available on the dedicated websites
localauthorityhomeloan.ie/ and www.gov.ie/en/service/00500-local-authority-home-loan-scheme/.
