Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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Question 47: To ask the Minister for the Environment, Heritage and Local Government the detail of the planned Government Equity Initiative for affordable housing; and if he will make a statement on the matter. [36446/08]

Michael Finneran (Roscommon-South Leitrim, Fianna Fail)
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As signalled by the Minister for Finance in Budget 2009, a new single streamlined Government Equity Scheme is to be introduced in relation to affordable housing. Under this new arrangement the purchase transaction will be largely unchanged from the affordable purchaser's perspective. However, instead of units being sold at a discounted price, with the value of the discount being subject to a reducing clawback, the State will take an equity stake in affordable units sold. The purchaser will have the option of either buying out the remaining equity in steps or at the end of a fixed period.

Initially, I intend to apply the equity loan arrangement to affordable housing delivered under Part V of the 1999 Affordable Housing Scheme and the Affordable Housing Initiative, once the details have been finalised and the necessary legislative provision has been introduced through the Housing (Miscellaneous Provisions) Bill, 2008. The issue of introducing an open market component of the scheme will be kept under review in light of developments in the housing market.

These new arrangements will introduce greater equity into the system and provide a basis for achieving greater consistency across the schemes and across different areas of the country. The greater protection of the State's investment will also mean that funds can be recycled into assisting further households with affordable housing.

Full information on the revised arrangements will be made available prior to their commencement. In the interim, the existing arrangements for allocation and sale of affordable housing continue to apply. Prospective applicants for affordable homes should apply in the normal way to the local authority or local authorities in the areas in which they are interested in purchasing. The website www.affordablehome.ie also carries information on affordable housing, and many local authorities are using this facility to advertise affordable homes, including application forms, in addition to their own local advertising and ongoing contacts with applicants on their lists.