Dáil Éireann Debate, Tuesday - 17 October 2023
306. Deputy Patrick Costello asked the Minister for Housing, Local Government and Heritage if he is aware that one of the State's largest mortgage providers (details supplied) is unwilling to allow a second charge on mortgages, thus blocking its customers from accessing the vacant property refurbishment grant; and if he will make a statement on the matter. [44706/23]
Amharc ar fhreagraIn July 2022, the Vacant Property Refurbishment Grant was launched to support bringing vacant and derelict properties back into use.
From 1 May 2023, a grant of up to a maximum of €50,000 is available for the refurbishment of vacant properties for occupation as a principal private residence and for properties which will be made available for rent, including the conversion of a property which has not been used as residential heretofore, subject to appropriate planning permission being in place.
Where the refurbishment costs are expected to exceed the standard grant of up to €50,000, a maximum top-up grant amount of up to €20,000 is available where the property is confirmed by the applicant to be derelict or where the property is already on the local authority’s Derelict Sites Register, bringing the total grant available for a derelict property up to a maximum of €70,000.
As part of the conditions associated with the Vacant Property Refurbishment Grant, there is a requirement that the applicant(s) will live in the qualifying property or rent it for a period of at least five years from the date of payment of the Grant. If at any time they sell the property, it ceases to be their principal private residence or if the property is no longer available to rent within ten years, they must reimburse the local authority an element of the full value of the Grant, as follows:
• Up to 5 Years – 100% of the monetary amount of the Grant
• Over 5 Years and less than or equal to 10 years – 75% of the monetary amount of the Grant
• Over 10 Years – No Clawback
On completion of works and prior to the issuing of the Grant, an agreement must be concluded between the local authority and the applicant. This contains the clawback agreement, including a charge on the property, which shall be binding on the applicant upon drawdown of the grant. The charge secures the local authority’s interest in the property.
In cases where an applicant has a mortgage on the property for which the grant has been applied for, this will be a second charge on the property. Where the applicant has a mortgage, that mortgage will always be the first or priority charge on the property.
My Department has been engaging with Banking and Payments Federation Ireland (BPFI) on behalf of its members since February of this year. This engagement has resulted in an agreement being reached with the main lending banks (AIB and subsidiaries EBS and Haven, Bank of Ireland, PTSB, Finance Ireland and Avant) to providing consent to a second charge on properties with mortgages, in respect of the grant. This agreement was communicated by the banks across across their branch network and by my Department across local authorities.
My Department will continue to engage regularly with BPFI to ensure that the main lending banks are compliant with the terms of the agreement.
