Róisín Shortall (Dublin North West, Labour)
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Question 581: To ask the Minister for the Environment, Heritage and Local Government the statutory instrument that allows a local authority to specify minimum annual salaries as part of its application process for affordable housing as opposed to general stress test measures; and if he will make a statement on the matter. [23797/07]

Batt O'Keeffe (Cork North West, Fianna Fail)
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Eligibility generally for the affordable housing schemes is determined on the basis that applicants are in need of housing and cannot afford to purchase a house on the open market. In the case of the shared ownership and 1999 affordable housing schemes, single applicants are eligible where their income in the previous tax year was €40,000 or under. 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. These maximum limits are set out in articles 31 and 32A of the Housing Regulations 1980, as amended.

Those with incomes greater than the limits mentioned above may be eligible for affordable housing under Part V of the Planning and Development Acts 2000-2006 or the Affordable Housing Initiative. Eligibility for these purposes 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.

There is no minimum income qualifying requirement set under any of the affordable housing schemes. However, in approving an affordable home purchase, local authorities are bound to consider the ability of applicants to make the necessary mortgage payments and satisfy themselves that the borrower's income is sufficient to meet the financial commitments involved. In that context, local authorities may set indicative minimum income levels which they consider are required, taking account of the repayments which fall to be met on the particular affordable homes being offered for sale.

Róisín Shortall (Dublin North West, Labour)
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Question 582: To ask the Minister for the Environment, Heritage and Local Government the action he is taking to reduce the cost of affordable housing to local authorities and to applicants. [23798/07]

Batt O'Keeffe (Cork North West, Fianna Fail)
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Affordable housing is made available at below market prices through a range of delivery mechanisms which have been put in place. These include the provision of direct subsidies by my Department to local authorities in respect of individual schemes, the provision of land by the State and local authorities at below market value, and the capacity, through Part V of the Planning and Development Acts 2000 to 2006, to acquire land at "existing use" value. The Shared Ownership Scheme provides a further avenue through which home ownership can be made more affordable. In addition, the Mortgage Allowance and Rent Subsidy schemes are available to assist lower-income households access shared ownership and affordable housing by providing an annual subvention towards repayment costs.

Apart from the individual delivery mechanisms and supports provided by the Government, a number of other measures have been introduced which are of considerable benefit to the purchasers of affordable homes. In particular, the purchase process is being streamlined by the introduction of arrangements for the direct selling of affordable homes by developers to approved nominees of the local authority. In addition, the agreement on arrangements under which a number of financial institutions are now offering mortgage finance for affordable homes provides for improved competition and greater choice for prospective purchasers.

Michael McGrath (Cork South Central, Fianna Fail)
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Question 583: To ask the Minister for the Environment, Heritage and Local Government the position regarding a proposed local authority social and affordable housing development (details supplied) in County Cork. [23802/07]

Batt O'Keeffe (Cork North West, Fianna Fail)
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My Department has recently received proposals in relation to this project. Given the scale of the development proposed, further discussions between my Department and the Council will be necessary before any decision can be made in this matter.