Olwyn Enright (Laois-Offaly, Fine Gael)
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Question 402: To ask the Minister for the Environment, Heritage and Local Government his views on correspondence (details supplied); and if he will make a statement on the matter. [21800/08]

Michael Finneran (Roscommon-South Leitrim, Fianna Fail)
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The correspondence appears to relate to the Department's low cost sites scheme and difficulties obtaining mortgage finance from banking institutions.

The low cost sites scheme is subject to phased claw-back arrangements designed to prevent short term profiteering by owners of subsidised sites. My Department is aware of an issue which has arisen whereby some applicants who have bought sites under the low cost sites scheme have experienced difficulties in obtaining mortgages from certain financial institutions. This arises where a financial institution objects to a local authority having the first charge on the property for clawback purposes. My Department has advised authorities where this problem has arisen that it is not a requirement of the scheme that the authority has a first charge and that it should enter into discussions with the financial institutions involved at local level with a view to seeking a resolution to the issue.

My Department is looking at issues arising in relation to the operation of the scheme with a view to considering the need for any supporting legislative changes in the context of the forthcoming Housing (Miscellaneous Provisions) Bill.

Low cost sites may be provided with the help, if necessary, of the other social housing measures including shared ownership, local authority house purchase loans, mortgage allowance, etc. It is open to the applicant to contact the housing authority directly in relation to such assistance.