Dáil Éireann Debate, Tuesday - 1 May 2018
459. Deputy Richard Boyd Barrett asked the Minister for Housing, Planning and Local Government his plans for families who availed of the affordable housing scheme and now need to move due to geographical or family size but are not in a position to increase their mortgage and the clawback is still owing to the council in view of the fact that there is no follow-on to the scheme; and if he will make a statement on the matter. [18919/18]
Amharc ar fhreagraHomes sold to first-time buyers under previous affordable housing schemes, at a significant discount from market value, contained a clawback provision, in order to prevent short-term profit-taking on the resale of the discounted house, to the detriment of the schemes' objectives.
Under the clawback provisions, as set out in the Planning and Development Act 2000, as amended, and the Housing (Miscellaneous Provisions) Act 2002, as amended, where the purchaser proposes to sell the unit within 20 years of the date of purchase, he/she must refund to the local authority a percentage of the proceeds of the sale of the unit. The percentage of the proceeds to be repaid will be related to the proportion of discount from the market value originally received from the local authority. A full refund must be paid if the unit is sold within the first ten years of occupancy. A reduction of 10% per annum is given for each full year of occupancy between 10 and 20 years and after 20 years of full occupancy, no refund would be due to the local authority.
However, where a person is selling an affordable home and the clawback amount payable would reduce the proceeds of resale below the initial price actually paid, the legislation provides for the amount of the clawback payable to be reduced to the extent necessary to avoid that result.
In terms of new affordability initiatives, the Government is committed to ensuring that housing is affordable to buy or rent for households on low to moderate incomes. With regard to affordable purchase, I intend to establish a new scheme, to be based on the relevant provisions of the Housing (Miscellaneous Provisions) Act 2009, which will be commenced shortly, and enabling regulations which are in preparation. In this regard, the inclusion of households as "eligible" for the purpose of the new scheme, including those that have purchased under previous affordable housing schemes, but whose current accommodation needs require the household to relocate to a different dwelling, are under active consideration.
