Jack Wall (Kildare South, Labour)
Link to this: Individually | In context

Question 60: To ask the Minister for the Environment, Heritage and Local Government the person who establishes the market value of a property under the affordable housing scheme; if a maximum threshold of 80% of market value applies to the price asked of a person qualified under the affordable housing scheme; and if he will make a statement on the matter. [10156/09]

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

Section 5 of the Housing (Miscellaneous Provisions) Act 2002 defines "market value" in the context of affordable housing provided under the Shared Ownership Scheme and the 1999 Affordable Housing Scheme, as meaning the price which, in the opinion of the housing authority concerned, might reasonably be obtained in respect of such house, if sold on the open market. The application of Part V, including determination of market value for clawback purposes, is a matter for individual local authorities.

Notwithstanding this, it is normal practice for participating private lending institutions, which provide mortgage finance for affordable dwellings, to limit such advances to 80% of the market value of the dwelling as determined by them. Affordable housing is sold at a discount to market value and there is no maximum threshold set on this discount. Local authorities determine the level of discount having regard to available resources to ensure the housing units are affordable.