Dáil Éireann Debate, Tuesday - 27 June 2023
388. Deputy Ivana Bacik asked the Minister for Housing, Local Government and Heritage his views on the decision by some mortgage lenders not to grant mortgages on properties which would qualify for the vacant homes grant, on the grounds that the local authority will take a charge in the property, should the property be sold within ten years; the action that he is taking to rectify this issue; and if he will make a statement on the matter. [31083/23]
View answerAs part of the conditions associated with the Vacant Property Refurbishment Grant, there is a requirement that the applicant(s) will live in the qualifying property or rent it for a period of at least five years from the date of payment of the Grant. If at any time they sell the property, it ceases to be their principal private residence or if the property is no longer available to rent within ten years, they must reimburse the local authority an element of the full value of the Grant, as follows:
• Up to 5 Years – 100% of the monetary amount of the Grant
• Over 5 Years and less than or equal to 10 years – 75% of the monetary amount of the Grant
• Over 10 Years – No Clawback
On completion of works and prior to the issuing of the Grant, an agreement must be concluded between the local authority and the applicant. This contains the clawback agreement, including a charge on the property, which shall be binding on the applicant upon drawdown of the grant. The charge secures the local authority’s interest in the property.
In cases where an applicant has a mortgage on the property for which the Grant has been applied for, this will be a second charge on the property. Where the applicant has a mortgage, it will always be the first or priority charge on the property.
My Department has engaged with Banking and Payments Federation Ireland (BPFI) and agreement has been reached with the main lending banks regarding the imposition of a second charge on properties in respect of the Grant.
