Tony McLoughlin (Sligo-Leitrim, Fine Gael)
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1036. To ask the Minister for Housing, Planning, and Local Government his views on a matter (details supplied); his further views on whether consideration can be given by local authorities to take into account the amount of funding which these fathers are paying in maintenance payments; if this amount can be removed from the calculation in which local authorities are making decisions on housing applications or loan applications; and if he will make a statement on the matter. [12254/18]

Eoghan Murphy (Dublin Bay South, Fine Gael)
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The Social Housing Assessment Regulations 2011 prescribe maximum net income limits for each local authority, in different bands according to the area, with income being defined and assessed according to a standard Household Means Policy.

The income bands and the authority area assigned to each band were based on an assessment of the income needed to provide for a household's basic needs, plus a comparative analysis of the local rental cost of housing accommodation across the country. The limits also reflect a blanket increase of €5,000 introduced prior to the new system coming into operation, in order to broaden the base from which social housing tenants are drawn and thereby promote sustainable communities.

Under the Household Means Policy, which applies in all local authorities, net income for social housing assessment is defined as gross household income less income tax, PRSI and the universal social charge. The Policy provides for a range of income disregards, and local authorities also have discretion to decide to disregard income that is temporary, short-term or once off in nature. There is no provision in the policy to deduct any other regular outgoings, such as maintenance paid in respect of family members, from gross household income for the purposes of the income threshold.

As part of the broader social housing reform agenda, a review of income eligibility for social housing supports has commenced and I expect the results of this review to be available for publication later this year.

In relation to loan applications, following a review of the two existing local authority home loan schemes, the House Purchase Loan and the Home Choice Loan, a new loan offering, the Rebuilding Ireland Home Loan was introduced on 1 February 2018. 

Rather than applying a Loan to Income (LTI) limit to the new loan, a maximum permissible Net Disposable Income (NDI) ratio of 35% is used which more accurately reflects the benefits of the low fixed rate available for the full term of the Rebuilding Ireland Home Loan.  The calculation for NDI is based upon after tax allowable income percentages, taking account also of the Universal Social Charge.  An applicant’s NDI ratio is calculated from the annual repayments on all loans, including the current application, and any maintenance payments, as a percentage of their Net Disposable Income.  The maximum ratio permitted is 35%.  This means that loan repayments in total cannot exceed 35% of a borrower’s after tax monthly income.

As with the previous local authority loan offerings, the Rebuilding Ireland Home Loan is available to first time buyers only. This is to ensure the effective targeting of limited resources.  Applicants who are separated or divorced may be treated as first-time buyers if they meet certain conditions including: 

- they are separated or divorced under a court order or by a separation agreement;

- the property being purchased is the first property since leaving the family home;

- they have left the family home and retain no interest in it; and

- the other party has remained in the family home.

The option currently available for non-first time buyers is to seek home loan facilities from one of the commercial lending institutions.

Detailed information on the new mortgage is available on the dedicated website, from the helpdesk at 051 349720, or directly from local authorities.