Cian O'Callaghan (Dublin Bay North, Social Democrats)
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276. To ask the Minister for Housing, Planning, and Local Government the repayment method for any equity stake in a property purchased under the proposed shared equity scheme; and if he will make a statement on the matter. [42772/20]

Darragh O'Brien (Dublin Fingal, Fianna Fail)
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Funding of €75 million in Budget 2021 has been be allocated to a new National Affordable Purchase Shared Equity Scheme, which will be introduced in 2021.  I intend to target this scheme at first time buyers including single persons, who are seeking to buy a new home but who cannot quite secure the full mortgage amount to do so at the present time. Subject to the final qualifying criteria, a limited equity stake would be taken in a property, in order to help more people meet the cost of buying their new home with their available mortgage.

To this end, significant preparatory work has already been carried out by my Department working primarily with the Housing Agency and the Department of Finance. Intensive engagement is progressing with key stakeholders informing the final detailed parameters of the scheme, as well as with home builders to seek to increase the output of new homes in response to the new scheme.

Furthermore, I will also progress and accelerate the local authority led scheme to deliver more affordable homes for purchase and rent on public land.  The statutory basis for the delivery of affordable new housing for purchase on local authority lands is Part 5 of the Housing (Miscellaneous Provisions) Act 2009, which was commenced in June 2018. The broad parameters of the local authority led Affordable Purchase Scheme will be as follows:

- aimed at first-time buyers;

- homes purchased under the scheme will be subject to a maximum statutory discount of 40% (relative to the market price), with the final price of the affordable homes to be linked to the cost of provision, on a site by site basis, and,

- the local authority maintains a fully repayable equity share in the properties equivalent to the percentage discount given.

It is envisaged that the homes delivered under both of the above schemes will be made available to applicants who meet defined eligibility criteria. The precise eligibility conditions are currently being developed in light of the on-going policy analysis outlined. I intend to bring forward any necessary provisions to underpin these schemes in a forthcoming Affordable Housing Bill which I intend to bring to Government in the coming weeks.