Michael Finneran (Roscommon-South Leitrim, Fianna Fail)

Amendments Nos. 2, 29 and 54 to 86, inclusive, deal with the incremental purchase scheme. The main provisions for the incremental purchase scheme arrangements were contained in the Bill as initiated and passed by Seanad Éireann. The amendments made by the Dáil provide for a further number of clarifications and improvements to those provisions. I have also taken the opportunity to align the incremental purchase provisions in Part 3 with the new arrangements for the tenant purchase of apartments which will also operate on the incremental purchase model.

Among the main changes to the incremental purchase arrangements as passed by the Seanad are a clarification on how the amount of money a purchaser will pay to an authority for a dwelling is calculated based on the purchase price provided for under amendments Nos. 59 and 60. Amendment No. 61 is necessary to ensure housing authorities can refuse to sell a dwelling under Part 3 where the applicant household is or has been in arrears of rent. The second part of this amendment, paragraph (p), however, allows for some flexibility in applying paragraph (a) to the applicant household as it allows authorities to approve a purchase application from an applicant in rent arrears who has entered into a repayment agreement with a housing authority under section 34. A simplification of the provisions governing the actual sale of a dwelling is provided under amendment No. 63 in Part 3.

A simplified method is provided under amendment No. 72 for purchasers to get a current statement from the authority or approved body as to how many additional incremental releases for the purchaser have thus accumulated. Purchasers can request this statement at any time from the authority or the body as it is a statement as opposed to a deed of discharge. There is no cost to the purchaser for requesting this statement.

Amendment No. 75 provides for the insertion of a new section in Part 3. This provides that a housing authority or an approved body may suspend the release of the charge share for any year where a purchaser breaches the terms and conditions of the charging order. In such circumstances, the charge held by the housing authority or approved body will not be discharged during the charge period. At the end of the charge period, the purchaser will be liable to repay to the housing authority or the approved body an amount equal to the percentage share in the dwelling held by the housing authority or the approved body based on the market value on the date of expiration of the charge period. I do not envisage this provision being invoked regularly. It is simply being inserted to ensure that where a purchaser does not comply with the terms and conditions of the charging order, the housing authority or the approved body concerned, has the power to take the appropriate action. Where a purchaser fails to repay this amount within two months of receipt of the notification from the housing authority or approved body, it is open to the housing authority or the approved body to recover the debt outstanding as a simple contract debt in court as is already provided for with regard to moneys owed where a purchaser resells a dwelling within the charge period and fails to make the repayment to the housing authority or an approved body.