Éamon Ó Cuív (Galway West, Fianna Fail)
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Question 533: To ask the Minister for the Environment, Community and Local Government if persons in receipt of social welfare payments can purchase houses under the tenant purchase scheme; and if he will make a statement on the matter. [26136/12]

Jan O'Sullivan (Limerick City, Labour)
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Persons in receipt of social welfare payments are not specifically precluded from purchasing their home under any tenant purchase scheme. However, if the applicants are applying to fund the purchase through loan finance from the local authority they must meet the criteria which apply to such loans. Provisions governing mortgage lending by local authorities are set out under the Housing (Local Authority Loans) Regulations 2009 and associated credit policy. To ensure effective targeting of resources, loan finance continues to be available to first time buyers only. Income limits are also in place, distinguishing between single and dual income households and a maximum loan limit is applied. In assessing loan applications local authorities take account of the household's ability to finance the loan based on their net household income. While, as a general rule, the credit policy provides that loans are not available to those in receipt of unemployment/social welfare benefits, an exception may be made where there is a primary income of a permanent waged/salaried nature and where the secondary income is from the Department of Social Protection.

In such cases long term social welfare payments can be considered, provided the long term nature of the payment is confirmed. The final decision on whether to grant/refuse an applicant lies solely with the relevant local authority. All local authorities must satisfy themselves on the financial risk they are undertaking. These provisions apply for purposes of mortgage lending by all local authorities.