Ulick Burke (Galway East, Fine Gael)
Link to this: Individually | In context

Question 417: To ask the Minister for the Environment, Heritage and Local Government if he will revise guideline criteria and income limits for affordable housing in view of the downturn in house prices and the greater demand for this scheme, recognising the difficulty in availability of mortgage finance in the private sector; and if he will make a statement on the matter. [5640/08]

Batt O'Keeffe (Cork North West, Fianna Fail)
Link to this: Individually | In context

Eligibility for the affordable housing schemes is determined on the basis that applicants are in need of housing and cannot afford to purchase a house outright on the open market. Any downturn in house prices improves affordability in the market and would, therefore, be expected to reduce demand for the affordable housing schemes. Applicants for affordable housing under Part V of the Planning and Development Acts 2000 to 2006 or the Affordable Housing Initiative satisfy the income eligibility requirement if the mortgage repayments for suitable accommodation available in the market would exceed 35% of their net income. There are no plans to change this approach, which provides a mechanism for taking into account up to date net incomes, house prices and mortgage servicing costs in determining an applicant's eligibility.

In the case of the Shared Ownership and the 1999 Affordable Housing Schemes, the annual income limit for a single income household is €40,000, while the annual limit for a two income household is €100,000, using the formula of 21⁄2 times the main income plus once the secondary income. The limits for these schemes are kept under review to ensure they are meeting the needs of the target groups for which they are intended. My Department is currently completing such a review and I expect to be in a position to announce the outcome shortly.