Written answers

Wednesday, 9 July 2008

Department of Environment, Heritage and Local Government

Social and Affordable Housing

11:00 pm

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
Link to this: Individually | In context

Question 340: To ask the Minister for the Environment, Heritage and Local Government the formula by which the clawback percentage is calculated in the case of affordable housing schemes; if his attention has been drawn to the fact that, in the context of falling house prices, there are occasions where the market value quoted by the Affordable Homes Partnership is significantly in excess of the actual value of the property as certified by an independent valuer and that this has the effect of increasing the clawback percentage imposed on the purchaser; if he will take steps to ensure that this anomaly is rectified; and if he will make a statement on the matter. [27961/08]

Photo of Michael FinneranMichael Finneran (Roscommon-South Leitrim, Fianna Fail)
Link to this: Individually | In context

The legal provisions relating to affordable housing under the 1999 Affordable Housing Scheme and Part V of the Planning and Development Acts 2000 to 2006 provide that the clawback must be based on the market value of the property at the time of sale to the person purchasing the property, and in the case of the Shared Ownership Scheme it is based on the date of grant of the shared ownership lease.

In the case of the direct procurement exercise operated by the Affordable Homes Partnership, or where the Partnership is selling affordable units on behalf of a local authority, it is the Partnership, or in some cases the local authority, that values the property. Where the purchaser does not accept this valuation they may have the property independently valued and submit this to the Partnership or local authority who will then re-examine its original valuation and determine the valuation to be applied to the property.

The clawback provision attached to a house purchased under the affordable housing schemes at a discount from market value is activated where the house is resold before the expiration of 20 years from the date of purchase whereby the person selling the property must pay to the housing authority a percentage of the proceeds of the sale. This clawback is expressed as the percentage discount received when the house was originally purchased and is applied to the subsequent resale price. It is an essential part of the scheme to prevent short-term profit taking. After ten years, the amount repayable is reduced by 10% in respect of each complete year thereafter during which the purchaser has been in occupation of the home as his or her normal place of residence.

Comments

No comments

Log in or join to post a public comment.