Thomas Gould
Question:372. Deputy Thomas Gould asked the Minister for Housing, Local Government and Heritage the reason equity share monetary values in affordable housing have been limited based on density. [24691/24]
View answerTuesday, 11 June 2024
Questions (372)
Written answers
The equity share 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 capital subvention of €50,000, €75,000 or €100,000 per home from the Affordable Housing Fund towards the development cost of delivering the homes. The subsidy level available relates to density and location as higher density typologies in urban core areas tend to have higher development costs.
Funding enables the local authority to subvent the developments costs of the proposed homes and to offer these to eligible affordable housing applicants at a discounted upfront affordable price they can afford and is only available to a local authority if the subsidy level allows the local authority to offer the homes at an upfront discount of at least 15% below market value.
The price paid is determined with regard to the purchasing power of the applicant. The local authority retains a percentage equity stake in the home equal to the actual discount availed of by the purchaser on the full market value of the home, redeemable by the purchaser at a future date.