More than 600 seek to buy 41 affordable houses in Ballymun

More than 600 people have joined a waiting list to buy just 41 co-operative houses in Ballymun, Dublin, which will not be built for at least 18 months and do not yet have planning permission.

Ó Cualann Cohousing Alliance recently sold an estate of 49 houses in Ballymun, with prices starting at €140,000 for a two-bedroom, €160,000 for a three-bedroom and €199,000 for a four-bedroom house.

The co-op now plans to build another estate of 66 homes, 45 of which will be houses, with four reserved for social housing and 41 for sale, as well as 22 apartments that will be used for an affordable rental scheme.

Since the completion of the houses in its first estate just two weeks ago, the co-op has been contacted by more than 600 prospective buyers interested in houses in its next estate, for which the co-op has yet to seek planning permission.

“It’s been unbelievable. We’ve had to start a waiting list, and obviously we can’t accommodate 600 families, so we would be advocating that this type of affordable housing scheme would be replicated, not only in Ballymun but throughout the country,” Ó Cualann chief executive Hugh Brennan said.

The new houses, most of which will be three-beds, will be more expensive than the first estate as labour and other costs have risen, but Mr Brennan said he hoped to keep prices below €220,000

Eligibility criteria

As with the first estate, buyers must meet eligibility criteria to be considered by the co-op; they must be from or working in the local area, they must have incomes within specified limits and they must have a 10 per cent deposit and mortgage approval in principle. In addition, buyers who are renting a local authority house, which they will be returning to the council, will be given first preference.

“Even with these criteria we expect to be oversubscribed and so we will put in place an allocations committee to assess the applications,” Mr Brennan said.

The land earmarked for the new homes is owned by Dublin City Council, which must agree to its rezoning and its disposal to the co-op before Ó Cualann can seek planning permission.

However, Mr Brennan said the co-op hopes to be in a position to submit a planning application by the end of the year. “We would love to be starting work on these this time next year.”

Local Sinn Féin councillor Noeleen Reilly said the waiting list indicated an urgent need for the Government to establish a new national affordable housing scheme.

“There is room for another 2,000 homes in Ballymun, and so there are huge opportunities for affordable housing here, but there is lots of vacant land in the city and elsewhere that could be used for affordable housing.”

Ms Reilly said she was not surprised by the demand for places in Ó Cualann’s new scheme.

“We are in the middle of a huge housing crisis, people desperately need homes. Ó Cualann are fantastic, but they are not the biggest organisation in the world. There needs to be a national affordable housing scheme.”

A new affordable housing scheme was promised nearly two years ago in budget 2016, but has yet to materialise.

58 unsold affordable homes in Laois leased as social housing

ALMOST 60 unsold affordable homes in Co Laois are now being leased to people on housing waiting lists, under the new social housing leasing initiative announced by the Government last year.

The scheme allows local authorities to house people on waiting lists in unsold affordable homes by leasing them to housing associations for five years.

If the housing market has recovered at the end of the lease period, the properties can be put on the market as affordable housing. If the current tenants do not wish to buy them, they will be rehoused by the local authority. If the housing market has not recovered in five years the lease can be extended.

The Clúid Housing Association has leased 58 such houses from Laois County Council, in eight estates in Borris-in-Ossory, Mountrath, Portarlington and Portlaoise.

Minister of State with responsibility for housing Michael Finneran said that the council was one of the first local authorities to embrace the new scheme.

Speaking in Portlaoise yesterday, he said the constrained state of public finances meant the State needed to “radically adapt” the way it met housing needs.

“Increasingly there is a need to move beyond the traditional approaches of construction and acquisition if we are to continue to meet housing need at the levels expected of us,” he said.

Neil McKeever of the Clúid Housing Association said the houses leased under the scheme were all good-quality properties and would help create a good social mix of households on the eight estates.

All tenants moved in before Christmas and Clúid is providing a full management and maintenance service to the tenants, who are charged an affordable rent.

Laoise - Affordable Homes FAQ

Laoise -

Affordable Homes FAQ

1) How do I apply for Affordable Housing?

Application forms for Affordable Homes can be downloaded from the Housing Section of this website or by calling into our offices here in Áras an Chontae: 057-8664088 or 057-8664240 or 057-8664237.

2) Can I re-sell my affordable home?

If you sell a property purchased under this scheme within 20 years a percentage of the proceeds of the re-sale of the property is payable to Laois County Council. The amount due to be repaid reduces by 10% every year after the 10th year. This “claw-back” on the proceeds of the re-sale of the property ceases after 20 years.

3) How do I qualify for the Affordable Housing Scheme ?

You must be a first time buyer (certain limited exceptions apply).

You must be in permanent employment.

Your income on your P60 from the previous tax year must be within the following limits:

• Single income household – Max in the previous tax year €40,000
• Double income household – Main earners income x 2.5 plus second income x 1 must not exceed €100,000

3) How do I qualify for the Affordable Housing Scheme ?

You must be a first time buyer (certain limited exceptions apply).

You must be in permanent employment.

Your income on your P60 from the previous tax year must be within the following limits:

• Single income household – Max in the previous tax year €40,000
• Double income household – Main earners income x 2.5 plus second income x 1 must not exceed €100,000

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4) What are the 3 different types of Affordable Housing schemes?

a Houses built on Laois County Council owned lands – Laois County Council Affordable Housing Scheme.

b Apartments in private residential developments – Part V Affordable Housing Scheme.

c On lands made available by the Government – Affordable Housing Initiative.

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5) What loan amount should I apply for as part of the Affordable Housing Scheme?

Laois County Council will determine the amount of loan you qualify for based on your current take home pay.

N.B. Your mortgage repayments can not exceed 35% of your net monthly income.

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6) What about legal fees and do I need my own Solicitor for a Housing Loan?

Purchasers are required to seek their own solicitor for the purcahse of their affordable home.

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7) Can I have a statement of my account/interest statement on my Shared Ownership Loan, Home Improvement Loan or Mortgage with Laois County Council

If you contact the Accounts Section, Loans Sales & Grants and provide your name, address and account number, a statement will be posted out to you.

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8) What does Mortgage Protection cover in the Affordable Housing Scheme?

The Mortgage Protection Scheme provides insurance in the event of long-term illness or injury for the principal earner and death for both earners. It does not cover you for illness or injury sustained prior to the completion of the purchase of your property.

Affordable Housing FAQs

Do I qualify for an affordable home?

To qualify for an affordable home, you should :

• be a first-time buyer (but there are some exceptions, for example if you are divorced)
• have enough income to meet your mortgage repayments after you have paid all your other costs; and
• as a guide, earn up to €55,000 in a year as a single person (up to €75,000 between you if you are a couple).  These are the approximate income limits only - lower income limits may apply.

Are you eligible for mortgage allowance?

A Local Authority tenant/tenant purchaser, a tenant of a house provided by a voluntary body, which does not qualify for the income related subsidy under this scheme, may be eligible for mortgage allowance to reduce their mortgage payments in each of the first five years of the mortgage.  An allowance of up to €11,450 is payable.

Can I get my mortgage from any Lending Agency?

Mortgages can be obtained from one of the following nominated financial institutions: EBS (Home Access), IIB Homeloans Ltd. (Advantage Mortgage), First Active or Bank of Ireland (Breakthrough Mortgage).

However, if you are purchasing one of the Local Authority’s own affordable houses, you must get your mortgage from the Local Authority.  Local Authorities provide mortgages up to a maximum amount of €185,000 with a 3% deposit required.

Who provides affordable homes?

Private developments

Most affordable homes are in private developments.  Usually, a percentage of all houses or apartments in a private development are made available to be sold as affordable homes.  These are sold at a discount to other houses and apartments in the development.

Land owned by the Government and Local Authorities

Another way of providing affordable homes is to build them on land the Local Authority owns.  Land owned by the Government has also been made available for affordable homes.

What types of affordable homes are available?

A range of different properties are available to buy, including:

• one-, two- and three-bedroomed apartments; and
• two-and three-bedroomed houses.

What makes these properties affordable is that they are all available at prices that are much lower than the market value.

How do I apply?

To apply to Meath County Council for Affordable Housing, please print out and complete the Affordable Housing Application Form and send to Caroline Doonan, Housing Section, Meath County Council, County Hall, Navan, Co. Meath.

Contacts

Caroline Doonan,
Housing Section,
Meath County Council,
County Hall,
Navan,
Co. Meath.

Telephone: 046 9097256

Email: cdoonan@meathcoco.ie

You can apply to more than one Local Autority.  Local Authorities include County Councils, City Councils, Borough Councils and Town Councils.

What happens once I apply?

Meath County Council will assess your application to decide whether you qualify for an affordable home.  We will send you a letter explaining the outcome of your application. 

What are my chances of being offered an affordable home?

There is more demand for affordable homes in some places than others.  The number of affordable homes available may be limited in the area you would prefer to live in.  Keep your options open by considering alternative areas.

How much is an affordable home?

An affordable home is a home that you buy at a discount to the market price, but the prices are different in different areas of the county.

The discount can also change depending on the property.  The price depends on the area you want to live in and on the size and type of affordable home available. The price of affordable homes in large towns and cities tends to be higher than elsewhere.

In all cases you pay less for your affordable home than you would pay if you were buying it on the open market - that is what makes it an 'affordable home'.

What is the 'clawback'?

If you sell your affordable home within 20 years, you must pay back to the Local Authority a percentage of the sale price. This is known as the 'clawback'.  This applies whether you have a Local Authority mortgage or a mortgage with a Bank or Building Society. 

The Local Authority works out the clawback as follows:

• When you buy your affordable home, you get it at a discount to other similar properties in the market.  The clawback is based on the percentage discount you get when you buy your affordable home.  If you decide to sell or remortgage your home, the Local Authority applies this percentage to the price you get for the sale.
• If you sell within the first 10 years, you must pay back the full percentage from the sale that you got as a discount when you bought your home.
• After 10 years, the percentage you must pay back reduces by one-tenth for each full year you live in your home.
• If you sell your home after 20 years, you do not have to pay any 'clawback' to the Local Authority.

Example of how the clawback works

John and Mary buy an affordable home.  The market value of this property is €280,000, and they buy it at an affordable price of €196,000.  So, the market value discount to John and Mary, which is known as the clawback, is 30%.

• If John and Mary sold their affordable home for €330,000 after five years, the clawback would be €99,000 (30% of €330,000).  They would have to pay back €99,000 to the Local Authority.  They would also have to repay any money owed to the mortgage lender to clear their mortgage.
• If John and Mary sold their affordable home for €430,000 after 15 years, the clawback would have reduced to 15% and they would have to pay back €64,500 (15% of €430,000) to the Local Authority. They would also have to repay the money owed to the mortgage lender to clear their mortgage.
• If John and Mary sold their affordable home after 20 years, they would not have to pay any clawback, but they would have to repay any money owed to the mortgage lender to clear their mortgage.

How much can I afford to borrow?

As a guide, your mortgage repayments should not be more than one-third of your net income (after tax and social insurance (PRSI) have been taken off).  For example, if your net incomet is €2,700 a month, your mortgage repayments should not be more than €900 a month.  You need to be careful not to borrow more than you can afford to repay.

Where can I get a mortgage for an affordable home?

You may get a mortgage either from the Local Authority or from the following organisations:

• Bank of Ireland
• Educational Building Society (EBS)
• IIB Homeloans Ltd.
• First Active

Check www.affordablehome.ie for any updates on the above.

If you choose a mortgage with a Bank or Building Society and the Local Authority offers you a home:

1. The Local Authority will give you a 'Confirmation for Lender' certificate, which describes the property and tells you the Banks or Building Societies that may be willing to grant you a mortgage for your affordable home; and

2.  You can then take this certificate and apply for a mortgage with a Bank or Building Society.  The term of your Bank or Building Society mortgage (the number of years you make repayments for) can be for up to 35 years.

If you choose a mortage with the Local Authority:

1.  The most you can borrow from a Local Authority is €185,000 

2.  The term of your Local Authority mortgage can be up to 30 years; and

3.  Your mortgage repayments cannot be more than 35% of your net income.  If you are applying for a mortgage with someone else, the repayments cannot be more than 35% of your net income put together.

How long can a mortgage last?

A mortgage can last from 15 years to 35 years.  The number of years the mortgage lasts is called the term.  With a shorter term, you have higher monthly repayments but, because you pay the mortgage over a shorter period, you pay less interest in total.  With a longer term, you have lower monthly repayments but you pay more interest in total.

Cost of affordable home	Less deposit (3%)	Mortgage over 25 yrs	Approximate monthy repayment (an interest rate of 4.5%)
€ 160,000	€ 4,800	€ 155,200	€ 860
€ 180,000	€ 5,400	€ 174,600	€ 970
€ 220,000	€ 6,600	€ 213,400	€ 1,185

Note: This is an example only and the interest rate may change.  Your monthly mortgage repayments can go up or down depending on interest rates and the conditions of your mortgage agreement.  You must pay legal fees, which may be about €2,000.  To buy an affordable home you will need a deposit and enough money to cover legal fees and other costs.  Remember to make sure that after you make your monthly mortgage repayment you still have enough money left to pay all your other bills.  A management charge may apply to some affordable homes.

Will I have to pay stamp duty?

As a first-time buyer, you will not have to pay any stamp duty if your home is less than 125 square metres.  Usually, homes bought by first-time buyers are less than 125 square metres.

What about tax relief on my mortgage?

You will get tax relief on the interest you pay on your mortgage.  The tax relief is applied by the lender providing your mortgage.  Your monthly mortgage repayments are then reduced in line with this.  Your lender should give you a TRS1 form which you will need to fill in and send to:

The Office of the Revenue Commissioners

Collector-General's Division

TRS Section

Sarsfield House

Francis Street

Limerick

Do I need mortgage-protection insurance?

Yes.  This is a special type of life assurance taken out for the term of the mortgage to make sure the mortgage is paid off if you die.

Mortgage-protection insurance from your Local Authoriy

If your mortgage is with the Local Authority, you must take out a mortgage-protection insurance policy with them and the cost will be added to your monthly mortgage repayments.

Mortgage-protection insurance from your bank or Building Society

If you get a mortgage with a Bank or Building Society, you will need to take out mortgage-protection insurance.  Discuss your options for mortgage-protection insurance with them.

Am I entitled to other benefits?

If you are earning less than € 28,000 a year (before tax and social insurance are taken off) or if you are a tenant of a Local Authority or Voluntary Housing Association, you may qualify for help with your mortgage payments (see below).

Mortgage Subsidy

A mortgage subsidy is help with your mortgage payments.  To qualify, your household income needs to have been less than €28,000 (before tax and social insurance is taken off) in the previous tax year.  Household income is the total income of the owners of the affordable home.  If you qualify for a mortgage subsidy your monthly mortgage repayments will be reduced.

Mortgage Allowance Scheme

The mortgage allowance scheme is an allowance of €11,450 to go towards your mortgage, paid over a five-year period.  If you are a tenant of the Local Authority, or you are buying the home you previously rented from the Local Authority, and you want to buy an affordable home, you may qualify for the mortgage allowance scheme.

The allowance is paid directly to the lender providing your mortgage and your repayments are reduced for the first five years of the mortgage.  The allowance paid in any year cannot be more than the total mortgage repayments due in that year. 

You may qualify for the mortgage subsidy and the mortgage allowance scheme, but you can only claim for one of them.  Which of these benefits you most will depend on your income.

19. What is the 'Clawback'?

If you sell your affordable home within 20 years, you must pay back to the local authority a percentage of the sale price. This is known as the 'clawback'. This applies whether you have a local-authority mortgage or a mortgage with a bank or building society.

The Local Authority works out the Clawback as Follows:

• When you buy your affordable home, you get it at a discount to other similar properties in the market. The clawback is based on the percentage discount you get when you buy your affordable home. If you decide to sell or re mortgage your home, the local authority applies this percentage to the price you get for the sale.
• If you sell within the first 10 years, you must pay back the full percentage from the sale that you got as a discount when you bought your home.
• After 10 years, the percentage you must pay back reduces by one-tenth for each full year you live in your home.
• If you sell your home after 20 years, you do not have to pay any 'clawback' to the local authority.

Example of how the Clawback Works

John and Mary buy an affordable home. The market value of this property is €280,000, and they buy it at an affordable price of €196,000. So, the market value discount to John and Mary, which is known as the clawback, is 30%.

• If John and Mary sold their affordable home for €330,000 after five years, the clawback would be €99,000 (30% of €330,000). They would have to pay back €99,000 to the local authority. They would also have to repay any money owed to the mortgage lender to clear their mortgage.
• If John and Mary sold their affordable home for €430,000 after 15 years, the clawback would have reduced to 15% and they would have to pay back €64,500 (15% of €430,000) to the local authority. They would also have to repay any money owed to the mortgage lender to clear their mortgage.
• If John and Mary sold their affordable home after 20 years, they would not have to pay any clawback, but they would have to repay any money owed to the mortgage lender to clear their mortgage.
• If John and Mary sell their home and the market value has decreased from €280,000 to€260,000 then the clawback would be based on the lower market value of €260,000 less what they paid €196,000, which is €64,000. So they have to pay back €64,000 to the local authority when they sell in addition to any money owing on their mortgage.

20. Can I Buy an Affordable Home through Shared Ownership?

Yes. Shared ownership is when you buy part of your home and pay rent to the local authority on the share you do not own. It means that instead of taking out a full mortgage on your new home, you can buy part of it and pay rent on the other part to the local authority.

What about a deposit and savings?

• It is possible to borrow up to 97% of the purchase price of an affordable home. This means that you need to save at least 3% of the price for a deposit.
• You should be able to show that you have a record of saving. Or, some Banks or Building Societies may take a record of rent paid into account as part of a saving record.  This can show your ability to pay a mortgage.
• Banks and Building Societies may apply their own conditions, so you should check with them first.

Affordable Home - Frequently Asked Questions

Affordable Home - 

Frequently Asked Questions

How do I pay my Loan?

Loan payments can be made in the following ways:

• Sepa Direct Debit. This differs from standing orders in that you are instructing your bank to deduct variable amounts form your bank account every month.  If you would like to set up a direct debit to repay your loan, please print and fill out the SEPA Direct Debit Form and send it back to us. Our contact details are at the end of this page. By signing the instruction to your bank, you are acknowledging that the monthly instalment will be debited from your bank on the 1st of every month.
• Standing Order. To pay by Standing Order through your bank, print and fill out theLoans Standing Order Form and send it to your bank. 
• Post office – Payments of certain loans(Accounts numbers beginning with letters S,T & V) can be made at the post office free of charge and must be made using a payment card available from our Loan Accounts Section.
• Payments office: Payments can be made by cash, cheque, bank draft, and credit & laser card. You can post cheques or drop into our payment office in County Hall, Swords, Co. Dublin or at Grove Road, Blanchardstown, Dublin 15.
• Phone payments: If you wish to pay by credit or laser card, please call our payments office.
  Telephone: (01) 8905309 or (01) 8905154. 
  The payments office is open from 9.30am to 3.30pm Monday to Friday.

How Do I Make A Lump Sum Payment?

• The minimum lump sum that you can pay is €1,000.00. If you make a Lump sum payment, your monthly payment will be reduced; your loan term remains unchanged. There are no penalties in making a lump sum payment. If you want to make a Lump Sum payment, please contact us, you will also need to complete a Lump Sum payment request form. Lump Sum Payment Form 2015

How Do I Check My Loan Balance?

If you want to check your loan balance (redemption figures) you need to print and fill out aRedemption Quotation Form, and send it back to us. Our contact details are at the end of this page. We will post a copy of your balance (redemption figures) to you within 3 to 5 working days. 

I Want To Buy Out My Rented Equity (Rented Portion of Your Shared Ownership Loan) 

If you bought a home under our Affordable/Shared Ownership Scheme you may qualify to convert the rented portion of your loan to a full mortgage. To apply, you need to print and fill out an Application to Transfer Rented Equity to Mortgage Form and send it back to us. Our contact details are at the end of this page.

I Want To Sell My Affordable Home

If you want to sell your affordable home you need to let us know in writing. Please include details of your estate agent and the asking price. When we receive and approve a copy of the signed sale agreed contract from you solicitor,we will then post a copy of your balance (redemption figures), including clawback figures. Our contact details are at the end of this page.

How Is The Clawback Calculated?

When you bought your affordable home, you got it at a discount to other similar properties on the market. The clawback is based on the percentage discount you got when you bought your affordable home. If you decide to sell your home, we apply this percentage to the price you get for the sale, depending on the current value of the property.  Depending on the value of your property when you sell it, the calculation of the clawback may vary. You can also read our Living in an Affordable Home and Clawback Leaflet.

Can I Rent My Affordable Property?

We allow you to rent your affordable property in certain circumstances, for instance should you take up employment abroad. To apply, you need to print and fill out an Application for Consent to Let an Affordable Property Form‌ and send it back to us. Our contact details are at the end of this page.

Can I get A Statement for My Mortgage Account?

We will post a mortgage statement out to you once a year, usually in January/February. However, you can request a statement at any time by contacting us. Our contact details are at the end of this page.

My Account is in Credit/Overpayment, What Can I Do?

To apply to have your credit/overpayment paid off your outstanding loan balance, you need to print and fill out a ‌ Captialise Overpayment Request Form and send it back to us. Our contact details are at the end of this page.‌

Living in an Affordable Home

Affordable housing schemes have been discontinued.  However if you were one of the affordable home buyers in the last number of years, the following information may still be relevant for you.

Affordable homes were provided for people who could not afford to buy a home on the open market.  They were provided at a discount to the market price on the condition that you had to live in it.

If you sold it within 20 years, you had to pay back a percentage of the sale price to the local authority.  This is known as a 'Clawback'.

Selling an Affordable Home

If you sell your affordable home within 20 years of buying it, you must pay back to the local authority an amount known as the ‘clawback’. This applies whether you have a local authority mortgage or a mortgage with a bank or building society.

How Does the Local Authority Calculate the Clawback?

When you bought your affordable home, you got it at a discount to other similar properties on the market. The clawback is based on the percentage discount you got when you bought your affordable home. If you decide to sell your home, the local authority applies this percentage to the price you get for the sale, depending on the current value of the property.  Depending on the value of your property when you sell it, the calculation of the clawback may vary. Examples of different scenarios are set out below.

Generally, if you sell within the first 10 years, you must pay back the full percentagefrom the sale that you got as a discount when you bought your home.

After 10 years, the percentage you must pay back reduces by one-tenth for each full year you live in your home.  If you sell your home after 20 years, you do not have to pay any ‘clawback’ to the local authority.

Example of How the Clawback Works

John and Mary bought an affordable home. The market value of this property was €280,000, and they bought it at an affordable price of €196,000. So, the market value discount to John and Mary, which is known as the clawback, was 30%.

Scenario 1 – if they sell the home for less than the affordable price 
If the market value of the home decreases below the original affordable price of the home, and the home is sold at this lower price, then no clawback is payable to the local authority.

Scenario 2: if they sell after 20 years
If John and Mary sold their affordable home after 20 years, they would not have to pay any clawback to the local authority as the clawback charge is discharged after 20 years. However, they would have to repay any money owed to the mortgage lender to clear their mortgage.
 

Scenario 3 - If the Market Value of the Affordable Home Decreases
If John and Mary sell their home and the market value has decreased from €280,000 to €210,000 then the clawback would be based on the lower market value of €210,000 less what they paid €196,000, which is €14,000. So they have to pay back €14,000 to the local authority when they sell in addition to any money owing on their mortgage.  

Scenario 4 – if the market value of the affordable home increases:

If John and Mary sell their home for a higher amount than the original market value for example, €330,000 after five years, the clawback would be €99,000 (30% of €330,000). They would have to pay back €99,000 to the local authority. They would also have to repay any money owed to the mortgage lender to clear their mortgage.

Plans for a new affordable housing scheme to be revealed

The programme will allow lower-income households to buy homes at a discount.

Plans for a new affordable housing scheme, allowing lower-income households to buy homes at a discount, will be announced in the next two weeks, Minister for Housing Eoghan Murphy has confirmed.

The new scheme would be the first to give set discounts to qualifying owner-occupiers since the national affordable housing scheme, which saw Dublin buyers get new homes at 30-35 per cent below market rates, was scrapped in 2011.

The introduction of a new scheme was announced almost two years ago as part of budget 2016, but has yet to be established.

Under the last scheme a local authority would buy houses, at a discount, from developers, and sell them to first-time buyers whose incomes were below a certain threshold. Under the 2000 Planning Act developers had to provide 20 per cent of any new housing estate for social or affordable housing.

The discount deals were agreed with the developers when the estates received planning permission and then passed on to the purchasers when the homes were completed.

Homeowners who sold up within 20 years had to pay a percentage of the proceeds of the sale to the local authority, known as a “clawback” to repay the discount.

The discount in Dublin was in the region of 30-35 per cent. However, following the collapse of the property market in 2008, local authorities were left owning hundreds of properties they had bought from developers at the height of the market which, after the crash, would cost buyers more than similar homes on the market.

In 2009 Dublin City Council alone had a backlog of 300 unsold affordable houses that were costing it upwards of €300,000 a month in bridging loans and fees. Two years later the Government scrapped the scheme, with developers now only obliged to provide 10 per cent of homes for social housing.

Matter of urgency

Following the Government announcement in late 2015 that it intended to introduce a new affordable housing scheme, the city council decided to incorporate affordable housing into plans for its vacant lands.

The council plans more than 1,600 homes at O’Devaney Gardens, St Michael’s Estate and Oscar Traynor Road, 50 per cent of which would be private homes, 30 per cent social housing and 20 per cent affordable housing.

In a report earlier this year the council’s housing department said this “was done in the context of an expectation that some type of a national affordable housing scheme would be introduced by Government,” but “no such scheme has been introduced”.

The lack of a State affordable housing scheme would “result in delays to the procurement process,” it said.

With tenders issued last month for the €125 million regeneration of O’Devaney Gardens, it is understood the council had asked the Government to deal with the affordable housing issue as a matter of urgency.

The terms of the new scheme, including eligibility criteria, have not yet been finalised, but speaking at an event to mark the completion of social housing on Charlemont Street in Dublin yesterday, Mr Murphy said a scheme was “being worked on” and he would announce details “in a couple of weeks”.

Affordable housing schemes

Introduction

The affordable housing schemes aimed to help lower-income households to buy their own homes. They offered eligible first-time purchasers the chance to buy newly constructed homes and apartments at prices significantly less than their market value.

If you bought an affordable home

If you sell your house within 20 years, you will have to pay the local authority a percentage of the proceeds of the sale - known as clawback. This percentage is expressed as the percentage difference between the sale price and the market value of the house. This amount will be reduced by 10% each year after you have owned your home for 10 years. So, if you sell your home after 20 years, you will not have to pay any clawback to the local authority.

The market value at the time of selling your affordable home is used to calculate the amount of clawback due to the local authority. If the gap between the original sale price and market value has narrowed, the amount due to the local authority will also reduce. If the proceeds of the sale of your affordable home are below the initial price actually paid, you will not be liable to pay the local authority a percentage of the proceeds of the sale.

How the schemes worked

Affordable Housing Scheme

Under the Affordable Housing Scheme the local authority provided land on which new houses were built and sold. You would qualify for the Affordable Housing Scheme if :

• You were in need of housing and your income satisfied the income test, or
• You were registered on a housing waiting list with a local authority, or
• You were a local authority tenant or a tenant purchaser and you wanted to buy a private house and return your present house to the local authority, or
• You were a tenant for more than one year of a home provided by a housing association under the Capital Loan and Subsidy Scheme and you wanted to buy a private house and return your present house to the housing association.

The income test only applied to people mentioned in the first bullet point; if you were covered by the second, third or fourth bullet points, you were exempt from the income test. However, all applicants had to have enough income to meet their mortgage repayments after paying other bills.

Some local authorities had lower or higher income limits than others. As a guide, the following are approximate limits:

• Single-income household: If your gross income (before tax) in the last income tax year was between €25,000 and €58,000, you might be eligible.
• Two-income household: If your joint income was €75,000 or less, you might be eligible.

Part V affordable housing

Part V of the Development Acts 2000-2002 allows a local authority to require developers to set aside up to 20% of new developments of 5 or more houses for social or affordable housing. The local authority decides how much (if any) of the 20% will be social, voluntary or affordable housing - though as the affordable housing schemes have been stood down, no more housing is now being designated as affordable.

There were no rules about where affordable houses should be located in new developments. It was for the local authority to decide which homes should be designated as affordable housing, as appropriate.

You were eligible to buy an affordable house provided under Part V of the Planning and Development Acts 2000-2002 if 35% of your income was not sufficient to enable you to buy a house.

Affordable Housing Initiative

The Affordable Housing Initiative (AHI) was introduced under the Sustaining Progress agreement. Under this initiative the Office of Public Works provided land on which new houses were built and sold.The AHI aimed to meet the needs of people who would formerly have been able to buy a house, but found themselves priced out of the market.

You were eligible to buy an affordable house provided under the Affordable Housing Initiative if 35% of your income was not sufficient to enable you to buy a house.

Mortgages for affordable homes

Mortgages were available from local authorities and some banks also provided mortgages for affordable homes. The loan could be up to 97% of the price of the house, subject to repayments being no more than 35% of the household's net income after tax and social insurance (PRSI). Some private lenders had affordable housing mortgages. Applicants for private sector affordable mortgages had to be pre-approved by their local authorities for a suitable property.

Mortgage Subsidy Scheme

If you got a mortgage for your affordable home from the local authority and your gross household income was less than €28,000, you would be entitled to a subsidy of between €1,050 and €2,550 per year, paid directly to the local authority.

A household that did not qualify for this subsidy could instead qualify for the Mortgage Allowance Scheme.