Cian O'Callaghan (Dublin Bay North, Social Democrats)
Link to this: Individually | In context | Oireachtas source

324. To ask the Minister for Housing, Planning, and Local Government the reason different levels of discounts were applied to two different affordable purchase housing developments (details supplied); and if he will make a statement on the matter. [28766/24]

Darragh O'Brien (Dublin Fingal, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

The price discount availed of by a homebuyer in an affordable home purchase arrangement is a function of the gap between the purchasing power of the approved affordable housing purchaser and the open market price of the property concerned.

The provision of affordable purchase housing by local authorities is supported by a Government capital subvention of €50,000, €75,000 or €100,000 per home from the Affordable Housing Fund (AHF) towards the development cost of delivering the homes. The level of subsidy available varies having regard to the density and location of the affordable housing scheme and reflects the tendency towards higher development costs for higher density typologies in urban core areas. Funding enables the local authority to subvent the development costs of the proposed homes and to offer these to eligible affordable housing applicants at an advertised discounted upfront price.

To qualify for AHF support the local authority must demonstrate that the availability and application of the subsidy will enable it to offer the homes to eligible persons at an upfront advertised discount price that will be at least 15% below market value. The arranging for sale of homes, including the application of the total subsidy available per scheme to different types of homes within the scheme ensuring a discount of at least 15% per home type, is a matter for the local authority concerned.

The upfront price actually paid for each home then depends on the purchasing power of the applicant and the local authority retained percentage stake in the home is the difference between the actual price paid by the purchaser and the full market value of the home, which is redeemable by the purchaser at a future date.