Brian Hayes (Dublin South West, Fine Gael)
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Question 278: To ask the Minister for the Environment, Heritage and Local Government if his attention has been drawn to a potential problem that has emerged regarding the affordable housing scheme as it relates to the fall in value of the property market; if this matter has been brought to his attention by local housing authorities; and if he will examine this issue; and if he will make a statement on the matter. [34965/08]

Michael Finneran (Roscommon-South Leitrim, Fianna Fail)
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Affordable housing is made available at below the market price for comparable housing for those who, under normal circumstances, could not afford to buy their own homes. A clawback provision is in place to protect the State's interest in the house and to ensure that there is no short-term profit taking on the resale of an affordable house.

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. This clawback is expressed as the percentage discount received when the house was originally sold and is applied to the subsequent resale price.

Where the clawback amount payable would reduce the proceeds of the sale below the initial price actually paid, the legislation provides for the amount payable to be reduced to the extent necessary to avoid that result.