Housing Finance

 

Affordable and Shared Ownership

A number of affordable housing and shared ownership schemes were developed in the late 1980s and ’90s. Under the schemes, the owners acquired a long lease, but at a rent at a certain portion, usually meeting 50 per cent of the market rent. In this sense, the ownership was shared, and the notional share owed by the State was realised.

The various schemes were subjected to qualifications, including income levels and maximum prices. The schemes were designed to recoup the State share housing authority share upon sale.

Indirect Supports

The State provides financial support to housing costs through tax foregone, direct housing provision and direct subsidies, grants and allowances.

Affordable Housing Scheme

The Affordable Housing Scheme provides for the sale of units at prices below market value to the persons qualifying on income criteria who can qualify for mortgage subsidy. If the house is sold in 20 years, a clawback applies. Arrangements may be entered with mortgage providers to secure the clawback.

Where lands are transferred under Part 5 of the Planning Act, the authority may

• provide or arrange for provision of houses under land or sites concerned;
• may make land and sites available to persons  for development of their own houses for occupation;
• make land and sites available to housing associations for housing purposes.

Planning authorities may require, as a condition of planning permission, that a person enter an agreement regarding the provision of social and affordable housing. This may involve the transfer of land for social housing and building and/ or completion of completed units. In these cases, the sites are based on site cost. In the case of completed houses, they are based on site cost and building cost as agreed.

There is provision for payment by developers of compensation and lieu of transfer. Social and affordable housing schemes yielded a relatively small number of houses. It became inoperable after the financial crisis and housing price collapse of 2007-2012.

The Home Choice Loan schemes introduced in 2009 provided loan finance by local authorities to first-time buyers of new houses. Eligibility criteria depended on income.

Various Assistance

Local authorities may enter arrangements with private bodies, PPP, or other arrangements in relation to the provision of affordable housing. The Department may make a grant towards the cost of dwelling houses. The key objective is to prevent segregation and ensure a mix of social and affordable housing.

Local authorities may provide financial assistance to eligible persons to provide dwelling houses under an affordable purchase arrangement. They are criteria in respect of eligibility.

Clawback provision applied to profits on the resale of affordable houses. There is a charged share in favour of the local authority or other body equivalent to the original discount.

Special provisions apply for recovery of sums due on the sale of properties. There are simplified provisions for applying to the District Court, including provisions for obtaining possession.