Billy Timmins (Wicklow, Fine Gael)
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Question 16: To ask the Minister for the Environment, Heritage and Local Government if he will provide details of the new equity support scheme which is to replace existing affordable housing schemes; and if he will make a statement on the matter. [3882/09]

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 claw-back, 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 arrangement to affordable housing delivered under Part V of the Planning and Development Acts 2000 to 2007, 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, provide greater protection of the State's investment and achieve better value for money as 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 the 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.