Richard Bruton (Dublin North Central, Fine Gael)
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Question 134: To ask the Minister for the Environment, Heritage and Local Government if he has made provision for persons on shared ownership loans who run into difficulty in meeting repayments as a result of losing their job; and if he will make a statement on the matter. [2812/09]

Michael Finneran (Roscommon-South Leitrim, Fianna Fail)
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It is a matter for each local authority to administer house purchase loans having regard to housing needs, local market conditions and individual circumstances. In approving a shared ownership transaction, local authorities must consider, inter alia, the ability of applicants to make the necessary mortgage and rent payments and satisfy themselves that the borrower's income is sufficient to meet the financial commitments involved under the scheme. As a guide, outgoings should not exceed 35% of a household's net income.

Every effort is made to assist borrowers who encounter difficulties in meeting their commitments. For example, Article 10 of the Housing Regulations 1980 (Amendment) Regulations 1996 provides that, in cases of hardship, the loan repayment period may be extended and arrears capitalised so as to make repayments more manageable for the borrower.

Mortgage interest supplement under the Supplementary Welfare Scheme, under the aegis of the Department of Social and Family Affairs, is also payable, subject to the qualifying conditions of that scheme, in respect of mortgages under shared ownership transactions, in the same way as in the case of mortgages generally. An annual subsidy towards rent payments under the Shared Ownership Scheme is available through the Rental Subsidy Scheme, to households with a gross household income of up to €28,000 per annum in the preceding tax year. The level of subsidy ranges between €2,550 for incomes up to €13,000 and €1,050 for incomes up to €28,000.