Billy Timmins (Wicklow, Fine Gael)
Link to this: Individually | In context

Question 173: To ask the Minister for the Environment, Heritage and Local Government his plans to change the legislation with respect to the claw back on affordable housing; and if he will make a statement on the matter. [30308/05]

Noel Ahern (Dublin North West, Fianna Fail)
Link to this: Individually | In context

The claw-back provisions provide that if a house purchased under the affordable housing schemes at a discount from market value is resold before the expiration of 20 years from the date of the purchase, the person selling the property shall pay to the local authority a percentage of the proceeds of the sale. This percentage is equal to the percentage discount allowed by the local authority on the original sale of the house where the house is resold within the first ten years. The amount payable is reduced by 10% in respect of each complete year after the tenth year during which the person who purchased the property has been in occupation of the house as his or her normal place of residence.

The provision for a claw-back is necessary to ensure that there is no short-term profiteering on the resale of a house provided by a local authority at a discount from market value. I am satisfied that the provision operates fairly in protecting the State's interest in these affordable houses and I have no plans to amend the relevant legislation.