Darragh O'Brien (Dublin Fingal, Fianna Fail)
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I propose to take Questions Nos. 193 and 194 together.

The Local Authority Home Loan is a Government-backed mortgage for those 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.

With a Local Authority Home Loan you can borrow up to 90% of the market value of a residential property. As of 1 March 2023, the maximum market values of the property that can be purchased or self-built are:

• €360,000 in Dublin, Kildare, and Wicklow, or
• €330,000 in Cork, Galway, Louth and Meath, or
• €300,000 in Clare, Kilkenny, Limerick, Waterford, Westmeath and Wexford, or
• €275,000 in Carlow, Cavan, Donegal, Kerry, Laois, Leitrim, Longford, Mayo, Monaghan, Offaly, Roscommon, Sligo and Tipperary.

The market value of the property can be above these limits if the property is available through the Local Authority Affordable Purchase Scheme. In such cases it is the purchase price of the property, which takes into account the local authority's stake in the home, which must be below the relevant price limit.

The income limits for the Local Authority Home Loan, which are based on gross income, were also increased from 1 March 2023. Previously, single applicants seeking to purchase homes in Cork, Dublin, Galway, Kildare Louth, Meath and Wicklow could not earn in excess of €65,000 and must have earned less than €50,000 if seeking to purchase in the remaining counties. For joint applicants, the income limit was €75,000. From 1 March 2023, single applicants must not have earned greater than €70,000 annual gross income in the previous tax year, while joint applicants must not have earned greater than €85,000 combined gross income in the previous tax year.

Given the recent increases, there are no plans at present to change the income or house price limits, however, they are kept under review.

Further information on the Local Authority Home Loan scheme is available on the dedicated website localauthorityhomeloan.ie/

With regards to income eligibility for social housing, which is based on net income, the Social Housing Assessment Regulations 2011, as amended, 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 baseline social housing income thresholds were increased by €5,000 with effect from 1 January 2023. The thresholds, for single applicants, increased to €40,000, €35,000 and €30,000 for bands 1, 2 and 3 respectively, in net income terms. Details on the local authorities in each income band are available at the following link: www.gov.ie/pdf/?file=https://assets.gov.ie/236056/59ecede4-f862-4c5d-bf5a-e1a1d4ff9a63.pdf#page=null

An initial scoping and data gathering exercise for the preparation of potential options for a revised Social Housing income eligibility model has commenced. This work is ongoing. Once completed, detailed analysis and review will be required in advance of finalising options for myself and Government.

As regards cost rental income ceilings, which are also based on net income, the Government recently increased the net income thresholds for Cost Rental eligibility, effective from 1 August 2023, to replace the former national income threshold of €53,000. Prospective Cost Rental tenants must have a total net annual household income not exceeding €66,000 in the four Dublin local authority areas and not exceeding €59,000 in the rest of Ireland, as per the Cost Rental Eligibility Regulations 2023: www.irishstatutebook.ie/eli/2023/si/374/made/en/pdf

Darragh O'Brien (Dublin Fingal, Fianna Fail)
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Maximum rent limits for the Housing Assistance Payment (HAP) were set for each housing authority area in 2016, in conjunction with the Department of Social Protection (DSP). In reviewing rent limits, my Department worked closely with DSP and monitored data gathered from the Residential Tenancies Board and the HAP Shared Services Centre. In prescribing these limits, household size and prevailing rents in the relevant areas are taken into consideration. The HAP rent limits were increased significantly, in the order of 60% in some cases. Maximum rent limits for the HAP scheme are set out for each housing authority area by the Housing Assistance Payment (Amendment) Regulations 2017.

Under Housing for All, my Department was tasked with undertaking an analytical exercise to examine whether an increase in the level of discretion available to local authorities under HAP is required. The Housing Agency undertook to carry out this analytical exercise on behalf of my Department to better understand what level of discretion should be made available to local authorities under HAP to maintain adequate levels of support.

Since 11 July 2022 each local authority has statutory discretion to agree to a HAP payment up to 35% above the prescribed maximum rent limit and for new tenancies to extend the couple’s rate to single persons households. Discretion can be increased up to 50% above the prescribed maximum rent limits for Homeless HAP tenancies in Dublin. It should be noted that it is a matter for the local authority to determine if the application of the discretion is warranted on a case by case basis and also the level of additional discretion applied in each case.

My Department continues to keep the operation of the HAP scheme under review and closely monitors the level of discretion being used by local authorities, taking intoaccount other sources of data, includingResidential Tenancies Board rent data published on a quarterly basis.