Dáil Éireann Debate, Wednesday - 22 May 2024
104. Deputy Duncan Smith asked the Minister for Housing, Local Government and Heritage if he will ensure that persons such as pensioners who are eligible to purchase their dwellings under the tenant purchase scheme, are allowed to avail of SDA-type loans, especially where they have additional fixed income along with their pensions, which augments their repayment capacity; and if he will make a statement on the matter. [23119/24]
View answerThe Programme for Government and Housing for All commit to maintaining the right of social housing tenants to purchase their own home, subject to a number of reforms. The Tenant (Incremental) Purchase Scheme was reviewed in 2021 and 2023 in line with these commitments, to ensure there is a balance between maintaining the right of tenants to purchase their homes and the replenishment of social homes.
Following these reviews, a number of amendments were made to the Scheme, including the reduction of the minimum income eligibility requirement to €11,500 and the inclusion of certain State payments as sources of primary income. These positive changes have enabled older people to qualify to purchase their house under the Scheme, if they have the financial means to do so. Successful applicants may obtain finance through a variety of means, including through a financial institution, local authority home loan, or their own resources.
The Local Authority Home Loan requires that applicant must have a deposit equivalent to 10% of the value of the property to be purchased. However, applicant(s) availing of the Tenant Purchase Scheme are exempt from this requirement for a 10% deposit.
All other criteria for eligibility for the Local Authority Home Loan will apply to applicants availing of the Tenant Purchase scheme, which would include the demonstration of the applicants' creditworthiness. As part of the assessment process and to ensure prudent lending for both the borrower and the local authority, an applicant(s) repayment capacity and creditworthiness is assessed, which would include evidence of their savings record. I have no plans to amend this eligibility criteria at this time.
Decisions on all housing loan applications must be made in accordance with the Regulations establishing the scheme and the credit policy that underpins the scheme, in order to ensure prudence and consistency in approaches in the best interests of both borrowers and lending local authority.
Details of the Local Authority Home Loan can be found on the dedicated website: localauthorityhomeloan.ie/.
