Richard Bruton (Dublin Bay North, Fine Gael)
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91. To ask the Minister for Housing, Planning, and Local Government the means tests that applied to determine eligibility for social housing schemes; and if he recognises a gap between this income level and the threshold of income that would be needed to participate in the various other purchase schemes which might justify a rise in the social housing income thresholds. [29164/20]

Darragh O'Brien (Dublin Fingal, Fianna Fail)
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Applications for social housing support are assessed by the relevant local authority, in accordance with the eligibility and need criteria set down in section 20 of the Housing (Miscellaneous Provisions) Act 2009 and the associated Social Housing Assessment Regulations 2011, as amended.

The 2011 Regulations prescribe maximum net income limits for each local authority, in different bands according to the area concerned, with income being defined and assessed according to a standard Household Means Policy. The 2011 Regulations do not provide local authorities with any discretion to exceed the limits that apply to their administrative areas.

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, Universal Social Charge and Pension-Related Deductions within the meaning of Financial Emergency Measures in the Public Interest Act 2009. 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.

The income bands are expressed in terms of a maximum net income threshold for a single-person household, with an allowance of 5% for each additional adult household member, subject to a maximum allowance under this category of 10%; and 2.5% for each child, subject to a maximum allowance under this category of 10%.

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. It is important to note that the limits introduced at that time also reflected 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, both promoting sustainable communities and also providing a degree of future-proofing.

Given the cost to the State of providing social housing, it is considered prudent and fair to direct resources to those most in need of social housing support. The current income eligibility requirements generally achieve this, providing for a fair and equitable system of identifying those households facing the greatest challenge in meeting their accommodation needs from their own resources.

However, as part of the broader social housing reform agenda, a review of income eligibility for social housing supports in each local authority area is underway. The review will also have regard to current initiatives being brought forward in terms of affordability and cost rental and will be completed when the impacts of these parallel initiatives have been considered.

The Government is committed to ensuring that affordable, quality housing solutions are available to everyone in Irish society, and this is reflected in the Programme for Government "Our Shared Future". The Programme commits to putting affordability at the heart of the housing system through the progression of State-backed affordable housing.

The current arrangements in relation to affordable purchase including eligibility criteria are set out in Part 5 of the Housing (Miscellaneous) Provisions Act 2009. Under the Serviced Sites Fund (SSF), €310 million funding has been made available to local authorities to provide infrastructure to support the delivery of more affordable new homes on local authority lands. With a maximum of €50,000 infrastructure funding available per home, at least 6,200 more affordable homes, to buy or rent, can be facilitated. The funding support provided allows local authorities that have identified affordability challenges in their area to make homes available on their lands at more competitive prices. To date, of the total Serviced Sites funding available, €127 million has been approved in principle in support of 35 projects in 14 local authority areas, which will assist in the delivery of almost 3,200 affordable homes. It is anticipated that a further SSF call to local authorities will be made later this year.

In relation to the rental sector, the Programme for Government commits to improving security and affordability for renters. To achieve this, the Department is developing a Cost Rental model for housing that creates affordability for tenants and a sustainable model for construction and management of homes. Cost Rental is housing where the rents charged only cover the cost of delivering, managing, and maintaining the homes. It is intended for a target cohort of households with incomes above the limits for social housing provision, who are currently facing inflated rent levels in the private sector. Cost Rental is not intended to replace or overlap with social housing, which remains a priority for this Government. The precise eligibility conditions for Cost Rental are being developed and will be set in advance of the completion of the first Cost Rental projects.

There are a further two supports that may be of assistance to households to purchase their own home. The first is the Help to Buy (HTB) incentive is a scheme for first-time property buyers which may help with the deposit needed to buy or build a new house or apartment. Secondly there is the Rebuilding Ireland Home Loan. 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 was introduced, from 1 February 2018, known as the Rebuilding Ireland Home Loan. The loan enables credit worthy first time buyers to access sustainable mortgage lending to purchase new or second-hand properties in a suitable price range.

Single applicants for the loan must not be earning greater than €50,000 gross per annum. The combined income of joint applicants must not be greater than €75,000 per annum. There are no set minimum income limits; however, applicants do need to have sufficient borrowing and repayment capacity and must be capable of repaying the mortgage in accordance with the statutory credit policy underpinning the loan. These income limits are unchanged from the previous local authority loan offerings.

In relation to affordable housing generally, I will outline detailed plans during the Autumn, informed by the Budget 2021 process.

Richard Bruton (Dublin Bay North, Fine Gael)
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92. To ask the Minister for Housing, Planning, and Local Government when he plans issuing guidelines on the eligible income thresholds and other national criteria for affordable purchase and for cost rental schemes in respect of which many councils have already set the other criteria for prioritising applicants. [29165/20]

Darragh O'Brien (Dublin Fingal, Fianna Fail)
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This Government is committed to ensuring that affordable, quality housing solutions are available to everyone in Irish society, and this is reflected in the Programme for Government "Our Shared Future". The Programme commits to putting affordability at the heart of the housing system through the progression of State-backed affordable housing.

Part of the Government's fulfilment of this commitment is the implementation of Cost Rental housing in Ireland. Cost Rental is intended for a target cohort of households with incomes above the limits for social housing provision, who are currently facing inflated rent levels in the private sector. Cost Rental is not intended to replace or overlap with traditional social housing, which remains a priority for this Government. The precise eligibility conditions for Cost Rental are being developed and will be set in advance of the completion of the first Cost Rental projects.

Concerning affordable purchase, in advance of finalising the remaining Regulations required to make the local authority led Affordable Purchase Dwelling Arrangements fully operational and before the first affordable homes come on stream in early 2021, I have instructed my officials to review the provisions to ensure they remain fit for purpose. The current arrangements for this scheme are set out in Part 5 of the Housing Miscellaneous Provisions Act 2009, which contains provisions in relation to eligibility (including the income grounds) and the order of priority under which affordable dwellings to be made available by or through local authorities.

In terms of affordable housing more generally, I will outline my detailed plans in the near future, taking account of progress to date under the SSF and the input of key delivery partners.

Richard Bruton (Dublin Bay North, Fine Gael)
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93. To ask the Minister for Housing, Planning, and Local Government his plans to make changes in the limits on the price of the house on which an affordable loan can be obtained; and if he will make a statement on the matter. [29167/20]

Richard Bruton (Dublin Bay North, Fine Gael)
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94. To ask the Minister for Housing, Planning, and Local Government the present rate of interest which is charged on an affordable loan; what this represents in monthly payments per €1,000 borrowed on a 25 and 30 year mortgage; if there are additional charges added for insurance and so on; and if he anticipates the potential for the reduction in these charges in the coming months. [29168/20]

Darragh O'Brien (Dublin Fingal, Fianna Fail)
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I propose to take Questions Nos. 93 and 94 together.

The Rebuilding Ireland Home Loan is the only government-backed loan product currently available.

It was introduced following a review of the two existing local authority home loan schemes, the House Purchase Loan and the Home Choice Loan, from 1 February 2018. The loan enables credit worthy first time buyers to access sustainable mortgage lending to purchase new or second-hand properties in a suitable price range.

The purchase or self-build of a property must not exceed the maximum market value applicable for the county in which it is located:

- €320,000 maximum purchase price for properties in Cork, Dublin, Galway, Kildare, Louth, Meath and Wicklow (maximum loan amount of €288,000);

- €250,000 maximum purchase price for the rest of the country (maximum loan amount of €225,000)

Initially, interest rates were set at a fixed rate for terms up to 25 years of 2.0%; fixed rate for terms up to 30 years of 2.25%; and variable rate for terms up to 30 years of 2.3%. On 15th August 2019, the variable interest rate option was discontinued - it had accounted for less than 1% of RIHL drawdowns. On 15th January 2020 revised interest rates were set; loans with terms of up to 25 years have a fixed interest rate of 2.745%; and loans with terms of up to 30 years have a fixed interest rate of 2.995%. Per€1,000 borrowed on a 25 and 30 year mortgage, the monthly interest charges are €2.29 and €2.50 respectively.

In addition there is a requirement to take out Local Authority Mortgage Protection Insurance, which costs 0.555%. Therefore, the overall cost of RIHL loans are 3.3% and 3.55%for 25 year and 30 year loans respectively.

The local authority MPI is a group scheme and is designed to provide an appropriate level of insurance cover to those who wish to avail of the Rebuilding Ireland Home Loan. It offers a number of additional features over and above the standard MPI products available on the market. Standard MPI products are individually priced, based on a member’s age, amongst other factors, whereas the local authority MPI scheme is a group arrangement, offering a single group rate per €1,000 sum assured to all participants in the scheme.

The scheme also provides other benefits over standard MPI products. These include the payment of mortgage repayments if there is a valid claim as a result of disability; an additional payment of €3,000 in the event of a member’s death, separate to life cover; and members are also covered for death up to age 75 rather than 65 as is the case under standard MPI cover.

There are currently no plans to change the parameters of the Rebuilding Ireland Home Loans at this time.