Dáil Éireann Debate, Wednesday - 18 October 2023
190. Deputy Louise O'Reilly asked the Minister for Housing, Local Government and Heritage if he is aware of any scenario where the clawback amount on a local authority home purchased 20 years ago can be reduced; and if he will make a statement on the matter. [45665/23]
Amharc ar fhreagraThe legislation governing the clawback on previous affordable housing schemes is Section 99 of the Planning and Development Act 2000, or Section 9 of the Housing (Miscellaneous Provisions) Act 2002, depending on the home in question. Both pieces of legislation set the same clawback rule: where the property is resold within 20 years, the homeowner must pay a clawback amount equal to a percentage of the proceeds of the sale. The clawback is a legal requirement which all relevant parties would have been made aware of in advance of purchase, but the percentage reduces over time and withers after 20 years.
All issues pertaining to the clawback are processed by the relevant local authority which, as a contracted party to the agreement, is the most appropriate and best placed party to inform the owner of an affordable home on their current position.
The Affordable Housing Act 2021 now applies to all homes currently being made available under the new Local Authority Affordable Purchase Scheme. Rather than a withering clawback, as was the case previously, there is an equity share interest which is effectively the local authority’s share in the value of the affordable home. The equity share is equal to the discount from market price on the home at the time of purchase.
