Dáil Éireann Debate, Wednesday - 24 September 2008
1478 Deputy Michael McGrath asked the Minister for the Environment, Heritage and Local Government his views on whether the length of the clawback period in the affordable housing scheme administered by local authorities is reasonable; and if he has plans to review this period. [30904/08]
Amharc ar fhreagraThe clawback provision, attached to a house purchased under the various affordable housing schemes at a discount from market value, is activated where the house is resold before the expiration of 20 years from the date of purchase. In such an event, the person selling the property must pay to the housing authority a percentage of the proceeds of the sale. The clawback is necessary to ensure that there is no short-term profit taking on the resale of houses provided under the various affordable housing schemes at a discount from market value.
Notwithstanding that, I asked the Affordable Homes Partnership to consider how the range of existing affordable housing mechanisms might be enhanced. A resultant report Increasing Affordable Housing Supply has now been published. The report's recommendations are based on optimising the output from the existing mechanisms and include a proposal to introduce a new affordable housing product based on an equity loan arrangement to be used in conjunction with the existing schemes. The report further recommended the removal of the time limit on the clawback and recycling the repayment of the subsidy provided as an investment in new affordable housing.
A public consultation on the report has been completed and I am considering the outcome of this process in the context of the further development of policy on paths to home ownership, including through affordable housing.
