Written answers

Tuesday, 2 November 2021

Department of Housing, Planning, and Local Government

Housing Schemes

Photo of Michael RingMichael Ring (Mayo, Fine Gael)
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370. To ask the Minister for Housing, Planning, and Local Government if persons who are divorced or legally separated will be considered as eligible applicants for the proposed first home affordable purchase shared equity scheme; when the details of the scheme will be announced; and if he will make a statement on the matter. [52567/21]

Photo of Darragh O'BrienDarragh O'Brien (Dublin Fingal, Fianna Fail)
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Housing for All is the most ambitious housing plan in the history of our State, backed up by an unprecedented financial commitment of in excess of €4bn per annum. As detailed in Housing for All under ‘Pathway to Supporting Home Ownership and Increasing Affordability’, affordable purchase and the home loan scheme will be primarily targeted at first time buyers. However, the plan also confirms that it is intended that a ‘Fresh Start’ principle will apply for applications to these schemes. Depending on the particular scheme, this could mean that people who had been involved in a relationship breakdown or who have undergone insolvency proceedings, will be eligible to apply.

Housing for All commits to delivering an average of 4,000 affordable purchase homes per annum. Regarding the Local Authority Affordable Purchase Scheme, I have already commenced Part 2 of the Affordable Housing Act 2021 regarding Affordable Dwelling Purchase Arrangements. Section 10 of that Act details criteria for the assessment of applicant eligibility by a housing authority and provides eligibility in cases where a marriage, civil partnership or relationship has ended. It is intended the Regulations governing the operation of these provisions will be put in place in the near future. It is intended that upon deployment of the First Home Shared Equity Scheme, the Fresh Start principle would also apply.

My Department is engaging with a range of stakeholders including representatives from the Banking Payments Federation of Ireland, Bank of Ireland, Allied Irish Bank and PTSB to consider the administrative and operational provisions of the First Home scheme. Work on the detailed design and operation of the scheme is advancing. The full scheme details will be confirmed on completion of this work.

Photo of Sorca ClarkeSorca Clarke (Longford-Westmeath, Sinn Fein)
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371. To ask the Minister for Housing, Planning, and Local Government if his attention has been drawn to the refusal of Rebuilding Ireland to approve home loans due to a failure to save in circumstances in which women were in receipt of maternity benefit with no additional payment from their employer; and if he will make a statement on the matter. [52574/21]

Photo of Darragh O'BrienDarragh O'Brien (Dublin Fingal, Fianna Fail)
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Applicants for the Rebuilding Ireland Home Loan must be of good credit standing; have a satisfactory credit record; and be a first time buyer, to be eligible.

Applicants must provide bank or similar statements (such as post office, credit union etc.) for a 12-month period immediately prior to making an application, clearly showing a credible and consistent track record of savings. The cash savings should be no less than 3% of the market value of the property. Gifts are permissible up to 7% of the market value of the property, where their source is verified.

To support prudential lending and consistency of treatment for borrowers, a Loan to Value ratio of 90% applies to the Rebuilding Ireland Home Loan. Therefore, in order to avail of the loan, applicants must have a deposit equivalent to 10% of the market value of the property.

The Housing Agency provides a central credit assessment service to local authorities and credit checks are undertaken as part of the credit assessment process. The final decision on loan approval is a matter for the relevant local authority and its credit committee on a case-by-case basis. Decisions on all housing loan applications must be made in accordance with the statutory credit policy that underpins the Scheme, in order to ensure prudence and consistency in approaches in the best interests of both borrowers and the lending local authorities.

Loan applicants who are dissatisfied with a loan application decision of a local authority Credit Committee may appeal that decision to the local authority. Details of the appeals process can be obtained from the relevant local authority.

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