Jennifer Whitmore (Wicklow, Social Democrats)
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399. To ask the Minister for Housing, Planning, and Local Government if he will review the case of (details supplied); and if he will make a statement on the matter. [54987/22]

Darragh O'Brien (Dublin Fingal, Fianna Fail)
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The Local Authority Home Loan is a Government backed mortgage scheme for those on modest or low incomes who cannot get sufficient funding from commercial banks to purchase or build a home. It has been available nationwide from local authorities since 4 January 2022 for first-time buyers and fresh start applicants. The loan can be used both for new and second-hand properties, or to self-build.

A ‘Fresh Start’ principle applies for applications to the Local Authority Home Loan. The following categories of persons are eligible to apply for the Local Authority Home Loan under the Fresh Start principle:

- Applicant(s) that previously purchased or built a residential property, but is divorced/separated or otherwise and has left the property and divested themselves of their interest in the property are eligible.

- Applicant(s) that previously purchased a residential property, but have been divested of this through insolvency or bankruptcy proceedings, are eligible to apply. The applicant must be discharged from bankruptcy proceedings. It should be noted that a return to solvency should not be interpreted as a return to creditworthiness, which is a separate assessment.

In recognition of such instances, an exemption to the First Time Buyer eligibility criteria can be applied under the Fresh Start Principle. However, where a person still has a financial obligation related to their previous home, this must be resolved before they become eligible under Fresh Start.

The final decision regarding the Local Authority Home Loan application is made by the relevant Local Authority Credit Committee on a case by case basis. Decisions on all housing loan applications must be made in accordance with the Regulations establishing the scheme and the credit policy that underpins the scheme, in order to ensure prudence and consistency in approaches in the best interests of both borrowers and lending local authority.

Further details can be found on www.localauthorityhomeloan.ie/