Leo Varadkar (Dublin West, Fine Gael)
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Question 778: To ask the Minister for the Environment, Heritage and Local Government if he will review the income thresholds for affordable housing applicants under the 1999 and 2000 schemes; and if he will make a statement on the matter. [17755/07]

John Gormley (Dublin South East, Green Party)
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The income eligibility and loan limits for the 1999 Affordable Housing Scheme were reviewed and increased with effect from 1 January 2006. The maximum loan that can be advanced by local authorities for the acquisition or construction of a house increased to €185,000. The income eligibility for a single income household increased to €40,000, while in the case of a two income household, the income limit is based on the formula that 21⁄2 times the main income plus once the secondary income does not exceed €100,000. The income thresholds are examined on an annual basis to ensure they are meeting the needs of the target groups for which they are intended. My Department will be completing, as soon as possible, a review in this regard which is currently underway.

Those with incomes greater than the limits mentioned above may be eligible for affordable housing provided under Part V of the Planning and Development Acts 2000 — 2006 or the Affordable Housing Initiative. Eligibility for these schemes is determined on the basis that a person's income is insufficient to meet the mortgage repayments on a house suitable to their needs, by virtue of the fact that the mortgage payments on such accommodation would exceed 35% of the person's income after tax and PRSI. It is a matter for local authorities to keep under review the income ceiling applied in accordance with this formula in their areas, taking account, in particular, of changes in disposable income, house prices and mortgage servicing costs.