Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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Question 490: To ask the Minister for the Environment, Heritage and Local Government if affordable housing purchasers are required to maintain the property as their principal residence for the full 20 years after purchasing; the penalties that apply if the owner rents out the property during the first 20 years; his plans to relax the requirements in view of present economic conditions which are forcing many persons to relocate in order to obtain employment.. [27754/10]

Michael Finneran (Roscommon-South Leitrim, Fianna Fail)
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The allocation of an affordable home is made on the basis that an individual is in need of housing, is a first time buyer, cannot afford to purchase privately on the open market but can service a mortgage obtained by loan through an approved financial institution or a local authority where private finance has been refused.

While the terms and conditions of the various affordable housing schemes and the regulations governing local authority loans do not prohibit an affordable home owner from renting a spare room in his/her home, a local authority may attach conditions to the contract with the purchaser pertaining to subletting of the unit and its use by the purchaser as his/her normal place of residence. In order to prevent short-term profit taking on the resale of the house to the detriment of the objectives of the schemes houses sold to first time buyers under the various affordable housing schemes at a significant discount from market value contain a clawback provision. However, where a person is selling an affordable home and the clawback amount payable would reduce the proceeds of resale below the initial price actually paid, the legislation provides for the amount of the clawback payable to be reduced to the extent necessary to avoid that result.

A breach of contract conditions would be a matter for a local authority to pursue as it considers appropriate given the particular circumstances involved. The administration of the various affordable housing schemes is a matter entirely for local authorities and I have no plans to alter current arrangements.