Bernard Durkan (Kildare North, Fine Gael)
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Question 161: To ask the Minister for the Environment, Heritage and Local Government the way in which the price of affordable housing to the eligible purchaser is determined; if an additional sum is added to the price paid to the developer, as well as the clawback clause; and if he will make a statement on the matter. [11519/05]

Noel Ahern (Dublin North West, Fianna Fail)
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An agreement under Part V of the Planning and Development Acts 2000 to 2004 may provide for, inter alia, the developer building and transferring completed affordable units to the planning authority. The number and description of the units will be specified in the agreement and will be transferred at a price determined on the basis of the site cost of the units, calculated at existing use value together with the building and development costs, including profits, as agreed between both parties.

Under the 1999 affordable housing scheme, the housing units are generally built on land provided by the local authority whose actual cost is below the present day market value. This lower site cost is factored into the purchase price of the housing units. The purchase price may be further reduced by the application of a site subsidy which is recouped from the Department. It is a matter for the local authority to determine the level of subsidy required to make the units affordable.

Under both schemes, the actual sale price is a matter for determination by the relevant local authority having regard to, inter alia, the transaction costs involved including legal and conveyancing fees.

Where the local authority has provided a unit at a discount from market value under either scheme and the purchaser proposes to sell the unit within 20 years of the date of purchase, the owner must refund to the local authority a percentage of the proceeds of the sale of the unit, that is, a clawback. The percentage of the proceeds to be repaid will be related to the proportion of discount from the market value originally received from the local authority. A full refund must be paid if the unit is sold within the first ten years of occupancy. A reduction of 10% per annum is given for each full year of occupancy between ten and 20 years and after 20 years of full occupancy no refund would be due to the local authority.