Catherine Murphy (Kildare North, Independent)
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Question 682: To ask the Minister for the Environment, Heritage and Local Government the instruction he has given or will give to local authorities with regard to social housing in their ownership that is located within housing estates (details supplied) whose maintenance is taken care of by a management company; if local authorities are paying or ought to be paying the annual management fee in such estates; if so, the way in which he proposes to end this practice; and if he will make a statement on the matter. [34566/05]

Noel Ahern (Dublin North West, Fianna Fail)
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The intention of the Oireachtas, as set out in section 14 of the Housing (Miscellaneous Provisions) Act 2002, is that housing authorities should be permitted to take account, in the determination of rents or other payments from tenants, of cost incurred by the housing authority in relation to insurance or to any management services provided for the dwelling. However, the degree of any impact on rents would also depend on the operation of the differential rents scheme in the local authority area concerned.

The Minister has already made it clear, in reply to Question No. 97 of 25 October 2005, that local authority powers should not be used to transfer responsibility for public infrastructure in housing estates to the residents.

Catherine Murphy (Kildare North, Independent)
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Question 685: To ask the Minister for the Environment, Heritage and Local Government the financial institutions which provide mortgage services for affordable housing applicants and for subsidised site applicants; if these institutions operate a claw back on profits made subsequent to the resale of this category of house or site; and if he will make a statement on the matter. [34569/05]

Noel Ahern (Dublin North West, Fianna Fail)
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To date, agreement has been reached with two private lending institutions, the Bank of Ireland Mortgage Bank and the Educational Building Society, on arrangements pertaining to the provision by them of mortgage finance for applicants who have been allocated an affordable housing unit for purchase. Based on this approach, discussions are ongoing with several other leading private lenders to widen the availability of such finance.

The Housing (Miscellaneous Provisions) Act 2004, which was enacted on 21 December 2004 facilitates these new financing arrangements by allowing local authorities to place a claw-back as a charge on the property. The claw-back provides 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 as his or her normal place of residence.

The provision for a claw-back is necessary to ensure 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 works well in protecting the State's interest in these affordable houses.

While my Department is aware that there are financial institutions which provide mortgages for applicants qualifying for a subsidised site under the low cost site scheme, there is no formal agreement with individual financial institutions and local authorities. A claw-back arrangement, similar to that operating under the affordable housing schemes, applies to the scheme.