Eoin Ó Broin (Dublin Mid West, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

243. To ask the Minister for Housing, Planning, and Local Government the rationale for setting a 35% of net income threshold in his draft affordable housing regulations; and the way in which this relates to the 22% of net income threshold when determining Rebuilding Ireland home loan mortgages. [17990/19]

Eoghan Murphy (Dublin Bay South, Fine Gael)
Link to this: Individually | In context | Oireachtas source

Part 5 of the Housing (Miscellaneous Provisions) Act 2009 was commenced in 2018, and provides the statutory basis for the provision of affordable housing for purchase.

In March 2019, I signed the Housing (Miscellaneous Provisions) Act 2009 (Part 5) Regulations 2019, which primarily deal with the order of priority for the allocation of affordable homes within a Scheme of Priority. These regulations do not contain a reference to a 35% of net income threshold.

Section 84 (2) of the 2009 Act provides that where a household applies to a housing authority to purchase an affordable dwelling under an affordable dwelling purchase arrangement, the housing authority shall carry out an assessment of the household's eligibility.  This assessment will take into account a range of factors, including the provisions of section 84 (2)(b), which provides that the assessment will have regard as to whether the income of the household is adequate to meet the repayments on a mortgage, i.e. that payments should not exceed 35% of the household's annual income, net of income tax and PSRI.

In relation to the Rebuilding Ireland Home Loan, this is another measure which seeks to address issues of affordability. Rather than a Loan to Income (LTI) limit of the nature suggested, a maximum permissible Net Disposable Income (NDI) ratio of 35% is used in respect of the loan. This reflects more accurately the benefit to the individual of the low fixed rate available for the full life of the loan.

Eoin Ó Broin (Dublin Mid West, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

244. To ask the Minister for Housing, Planning, and Local Government if he will amend the eligibility criteria of his draft affordable housing regulations to ensure that applicants who have been forced to live outside the local authority area in which their centre of interest is due to high housing costs will not be excluded from applying for affordable housing in that local authority due to the fact that at the time of application they are not resident in that county; and if he will make a statement on the matter. [17991/19]

Eoghan Murphy (Dublin Bay South, Fine Gael)
Link to this: Individually | In context | Oireachtas source

Part 5 of the Housing (Miscellaneous Provisions) Act 2009 was commenced on 18 June 2018 and provides the statutory basis for the provision of affordable housing for purchase.

On 12 March 2019, I signed the Housing (Miscellaneous Provisions) Act 2009 (Part 5) Regulations 2019. These regulations deal with the order of priority for the allocation of affordable homes and the preparation of a 'Scheme of Priority' by each local authority.   

People who are not residing in a local authority area are not excluded from making an application for an affordable home in that local authority area.  It is open to all eligible persons to apply under the affordable housing scheme on the basis of need. 

However, in accordance with what is laid down in the aforementioned regulations, where at any point in time, the local demand for affordable housing units may exceed supply, a system of prioritisation is required.  In such situations, the regulations seek to provide a transparent and balanced framework for the allocation of available affordable housing units. As such, the framework prioritises applicants in a number of ways.  This includes those who have been residing in the administrative area for a period of up to 12 months preceding an application, where an applicant or any member of their household is attending school, college or university in the administrative area, and where an applicant or any member of their household is working in the administrative area.

Within a Scheme of Priority, it is a reserved function of each local authority to specify their own distance requirements in relation to the places of education and employment for applicants and members of their households.