Dáil Éireann Debate, Tuesday - 13 December 2022
312. Deputy Alan Dillon asked the Minister for Housing, Local Government and Heritage the reason a person (details supplied) was only offered 60% of a local authority home loan, despite meeting all the criteria for a 90% loan; and if he will make a statement on the matter. [62159/22]
Amharc ar fhreagraThe Local Authority Home Loan is a Government-backed mortgage for those on modest or low incomes who cannot get sufficient funding from commercial banks to purchase or build a home. It has been available nationwide from local authorities since 4 January 2022 for first-time buyers and fresh start applicants. The loan can be used both for new and second-hand properties, or to self-build.
Section 63(3) of the Local Government Act 2001 provides that, subject to law, a local authority is independent in the performance of its functions. Loan applications are assessed by the Housing Agency on behalf of the Local Authority in line with the Credit Policy. A recommendation to approve a loan, to approve a reduced amount or to decline is submitted to the Local Authority Credit Committee for final decision. The final decision on loan approvals is a matter for each local authority and its Credit Committee on a case-by-case basis. 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 the lending local authority.
A key element of the credit assessment is to ensure that the applicant has demonstrated sufficient repayment capacity. The amount they can borrow is based on this financial assessment.
Loan applicants who are dissatisfied with a loan application decision of a local authority Credit Committee may appeal that decision to the local authority. Each Local Authority will have an appeals procedure to allow dissatisfied applicant(s) to appeal a loan application decision of the credit committee. An Appeals Panel will consider appeals only where the applicant can prove their application adheres to the eligibility criteria. Details of the appeals process can be obtained from the relevant local authority.
