Andrew Doyle (Wicklow, Fine Gael)
Link to this: Individually | In context

Question 395: To ask the Minister for the Environment, Heritage and Local Government his plans to review the clawback condition on the affordable housing scheme; and if this will be applied retrospectively; and if he will make a statement on the matter. [24467/09]

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

Houses sold to first time buyers under the various affordable housing schemes at a significant discount from market value contain a clawback provision, in order to prevent short-term profit taking on the resale of the house, to the detriment of the objectives of the schemes.

As signalled by the Minister for Finance in Budget 2009, a new single streamlined scheme is to be introduced in relation to the sale of 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 this equity in steps or at the end of a fixed period.

It is intended to apply the new arrangement to affordable housing delivered under Part V, 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 currently before the Oireachtas. In addition, the Bill makes provision to facilitate arrangements under which a local authority could agree to its clawback charge ranking in second place behind a new or topped-up mortgage charge, thereby facilitating persons in affordable housing wishing to re-mortgage with a private lender.