Dáil Éireann Debate, Thursday - 30 June 2022
153. Deputy Eoin Ó Broin asked the Minister for Housing, Local Government and Heritage the total number of affordable purchase homes that have been delivered to date; the local authority areas in which they have been delivered; the sales price of the properties and the income limit for eligible purchasers for each size and type of home in tabular form. [35135/22]
Amharc ar fhreagraHousing for All sets out the range of actions necessary to increase the supply of housing to the required 33,000 homes, on average, per year over the next decade. 54,000 affordable home interventions will be delivered between now and 2030 to be facilitated by local authorities, Approved Housing Bodies (AHBs), the Land Development Agency (LDA) and through a strategic partnership between the State and retail banks.
Funding is made available by Government to assist local authority affordable housing delivery, for purchase and rent, through the Affordable Housing Fund (AHF), which prior to summer 2021 operated as the Serviced Sites Fund (SSF).
In the past 12 months, the SSF assisted in the delivery of 50 affordable homes at Enniskerry Road in South Dublin, Ireland's first secure, long term Cost Rental homes. These homes have rents of €1,200 per month, approximately 40% below open market rates in the area.
SSF/AHF funding is currently assisting in the delivery of 117 affordable purchase homes at Boherboy Road in Cork City. Sales prices for this development were quoted at €218,000 for a two bedroom home and €243,000 for a three bedroom home (priced in February 2020).
SSF/AHF is also assisting in the delivery of 39 affordable homes in Dun Emer in Lusk, Co. Dublin. Sales prices for Dun Emer range from €166,050 for a two bedroom apartment and €258,000 for a three bed semi detached house (prices at February 2021). Construction of these homes began in 2021 and all 39 units have been offered and allocated and will be delivered in 2022.
The AHF is also assisting in the delivery of affordable purchase homes to be completed in 2022 in Kilcarbery Grange, Clondalkin, which have been offered for sale and allocated at prices for the 16 three bedroom duplex homes ranging from €335,000 - €345,000.
Further schemes being supported under AHF advance purchase and expected to deliver housing in 2022 include schemes at Tower in Cork City where affordable sales prices will range from €243,000 to €304,000, and Castleland Park in Balbriggan where affordable sales prices will range from €315,000 to €340,000. Waterford County Council has advised my Department that two of their affordable housing projects, Summerfields, Kilbarry and Deer Park, Williamstown, will deliver their first phases in 2022. Affordable sales prices for these schemes will range from €205,000 to €243,000.
Affordable homes supported by my Departments AHF will be made available to eligible buyers at reduced purchase prices through the Local Authority Affordable Purchase Scheme. The provisions of the scheme are detailed under Part 2 of the Affordable Housing Act 2021. The percentage difference between the market value of the home and the discounted purchase price is reflected in a redeemable equity stake held by the Local Authority of between a minimum of 5% and a maximum 40% of the value of the home.
The income eligibility criteria for the Local Authority scheme are detailed in the Affordable Housing Regulations 2022, which can be found online at:
www.irishstatutebook.ie/eli/2022/si/183/made/en/print.
Under the provisions of these Regulations, the general rule for eligibility is that an applicant's (or applicants' applying jointly) annual gross income multiplied by 3.5 times cannot exceed 85.5% of the market value of the home in question. This rule can be represented by the formula:
3.5 x A = 0.855 x B
(Where A is the annual gross income of the applicant(s), and B is the market value of the home)
This test looks at whether someone would have the capacity to meet a purchase price of more than 95% of market value using a standard mortgage of 3.5 times income and for 90% of the purchase price (i.e. the maximum mortgage they could obtain without benefiting from one of the limited exemptions from the Central Bank Mortgage Measures).
In the case of a new home with a market value of €250,000, for example, this equation produces the result that the general eligibility limit is an annual gross income of €61,071 (to the nearest euro). Altering the market value of the home will produce different income values accordingly.
As detailed in the Affordable Housing (No. 2) Regulations 2022, once eligibility has been established, affordable homes will be sold to purchasers at discounted prices set according to the purchasing capacity of each applicant household and the minimum level of support which they require. This is subject, however, to minimum prices set by Local Authorities to reflect economic realities and ensure scheme viability.
