Written answers

Thursday, 1 May 2014

Department of Environment, Community and Local Government

Tenant Purchase Scheme Administration

Photo of Brian StanleyBrian Stanley (Laois-Offaly, Sinn Fein)
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21. To ask the Minister for Environment, Community and Local Government when details of the new tenant purchase scheme will be published; and the way in which it will differ from the old scheme. [19465/14]

Photo of Jan O'SullivanJan O'Sullivan (Limerick City, Labour)
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The Government yesterday approved the text of the Housing (Miscellaneous Provisions) Bill 2014 and its presentation to the Dáil. Among other things, the Bill will underpin a new incremental purchase scheme for existing local authority houses , involving discounts for purchasing tenants linked to household income, rather than length of tenancy as was the case under the 1995 scheme . However, consideration is being given as to how a weighting could be applied in terms of length of tenancy under the new arrangements. The detailed terms of the new scheme will be set out in Regulations to be made following the enactment of the legislation.

On the initial sale of the house, to the tenant, the housing authority will place a discount-related charge on the property that will dwindle away over a period of 20, 25 or 30 years depending on the level of discount granted, unless the house is resold or the purchaser fails to comply with conditions of the sale. Where the purchaser resells the house at a profit during the charge period he or she will be required to make a repayment to the housing authority based on the discount and the number of years that he or she has resided in the house. The charge operates, therefore, to encourage purchasers to remain in their dwelling for a reasonable period after purchase, thereby fostering sustainable communities.

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