Thomas Pringle (Donegal, Independent)
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126. To ask the Minister for Housing, Planning, and Local Government if he will ensure that the commercial banks are fully informed, through the Central Bank, of the subordinate nature of the charge against the property that is part of the vacant property refurbishment grant (details supplied); and if he will make a statement on the matter. [9097/23]

Darragh O'Brien (Dublin Fingal, Fianna Fail)
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As part of the conditions associated with the Vacant Property Refurbishment Grant, there is a requirement that the applicant(s) will live in the qualifying property for a period of at least five years from the date of payment of the Grant. If at any time they sell the property or it ceases to be their principal private residence within ten years, they must reimburse the local authority an element of the full value of the Grant, as follows:

- Up to 5 Years – 100% of the monetary amount of the Grant

- Over 5 Years and less than or equal to 10 years – 75% of the monetary amount of the Grant

- Over 10 Years – No Clawback

In the event of a fall in the value of the property, the full monetary amount, subject to the percentage clawback above will be repayable to the local authority. An agreement must be concluded between the local authority and the applicant which contains the clawback agreement, including a charge on the property, which shall be binding on the applicant upon drawdown of the grant. The charge secures the local authority’s interest in the property.

If the applicant has taken a mortgage to purchase the property, the bank’s charge will rank in priority.

My Department has engaged with Banking and Payments Federation Ireland in order to ensure that the banks are aware of the charge and its subordinate nature and there are no issues for applicants who are applying for the Vacant Property Refurbishment Grant.