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9 2002

HOUSING (MISCELLANEOUS PROVISIONS) ACT, 2002

PART 2

Affordable and Shared Ownership Housing Schemes

Definitions.

5. —In this Part—

“affordable house” means a house made available for sale in accordance with this Part by a housing authority at a price less than the market value and “affordable housing” shall be read accordingly;

“market value”, in relation to a house, means the price which, in the opinion of the housing authority concerned, might reasonably be obtained in respect of such house, if sold on the open market;

“shared ownership lease” means a shared ownership lease granted by a housing authority under section 3 of the Act of 1992.

Provision of affordable houses.

6. —(1) A housing authority may acquire, build or cause to be built affordable houses for sale by the housing authority in accordance with this Part.

(2) The Minister may make regulations for the purposes of this section and those regulations may include provision for all or any of the following:

(a) the class or classes of affordable houses that may be made available for sale;

(b) the class or classes of persons to whom affordable houses may be made available for sale;

(c) the form and manner in which an application to purchase an affordable house may be made;

(d) the manner in which the price at which an affordable house may be sold shall be determined;

(e) the requirements in relation to the family, income and other financial circumstances of persons to whom affordable houses may be made available for sale;

(f) requirements in relation to the occupation and maintenance of an affordable house;

(g) requirements in relation to the floor area of an affordable house determined in the prescribed manner;

(h) requirements in relation to the standards of construction, maintenance and repair of, and the provision of water, sewerage and other services to, an affordable house;

(i) the obligations of a person to whom an affordable house is made available for sale, including either or both of the following:

(i) the provision of mortgage protection insurance;

(ii) the minimum deposit payable by a person to a housing authority in respect of the purchase of an affordable house.

Subsidy towards housing loan charges.

7. —(1) The Minister may, with the consent of the Minister for Finance and subject to regulations that may be made by the Minister under this section, pay, out of moneys provided by the Oireachtas, a subsidy towards the loan charges incurred by a person to whom a housing authority makes a loan for the purchase of an affordable house.

(2) Without prejudice to the generality of subsection (1), regulations under this section may provide for all or any of the following:

(a) the amount of a subsidy, the conditions under which it may be paid and the manner of its payment, including payment by instalments;

(b) the payment to the housing authority making the loan of a subsidy on behalf of the person to whom it is payable under subsection (1) and the conditions under which it is paid to the housing authority;

(c) the class or classes of persons to whom a subsidy may be paid;

(d) requirements in relation to the family, income and other financial circumstances of a person to whom a subsidy may be paid;

(e) the period within which application for a subsidy shall be made;

(f) requirements in relation to the payment of any other subsidy or grant in respect of a house under any enactment (including this Act).

Allocation of affordable houses.

8. —(1) Each housing authority shall establish a scheme that determines the order of priority to be accorded to persons to whom affordable houses are made available for sale under this Part where the number of persons applying to the housing authority to purchase a house exceeds the number of houses available.

(2) For the purposes of establishing a scheme referred to in subsection (1), the housing authority shall have regard to the following:

(a) the accommodation needs of persons to whom affordable houses are made available for sale, in particular persons who have not previously purchased or built a house for their occupation or for any other purpose;

(b) the current housing circumstances of persons to whom affordable houses are made available for sale;

(c) the period for which persons to whom affordable houses are made available for sale have resided in the functional area of the housing authority;

(d) distance of affordable housing from places of employment of persons to whom affordable houses are made available for sale; and

(e) such other matters as the housing authority considers appropriate.

(3) A housing authority may review a scheme made under this section and, as it considers appropriate, make amendments to the scheme or make a new scheme.

(4) The making of a scheme under this section and the making of an amendment to any such scheme shall be reserved functions.

Control on resale of affordable houses.

9. —(1) In this section “purchaser” means a person to whom an affordable house is sold under this Part.

(2) Where an affordable house is made available for sale in accordance with this Part, the sale of the house to the purchaser shall, subject to subsection (3), be subject to any terms and conditions that the housing authority may specify, including terms and conditions relating to:

(a) notification of the housing authority by the purchaser of the proposed resale of the house;

(b) the occupation of the house by the purchaser.

(3) (a) The terms and conditions referred to in subsection (2) shall require, subject to paragraphs (c) and (d), that where an affordable house sold under this Part is resold by the purchaser before the expiration of 20 years from the date of sale to him or her, the purchaser shall pay to the housing authority an amount equal to a percentage of the proceeds of sale.

(b) The percentage referred to in paragraph (a) is calculated in accordance with the following formula—

Y × 100

Z

where—

(i) Y is the difference between the market value of the house at the date of sale to the purchaser and the price actually paid, and

(ii) Z is the market value of the house at the date of sale to the purchaser.

(c) The amount payable under paragraph (a) shall be reduced by 10 per cent in respect of each complete year after the 10th year during which the purchaser has been in occupation of the house as his or her normal place of residence.

(d) Where the amount payable under paragraph (a) would reduce the proceeds of the sale (disregarding solicitor and estate agent's costs and fees) below the price actually paid, the amount payable shall be reduced to the extent necessary to avoid that result.

(e) (i) In calculating the amount payable under paragraph (a), due allowance shall be made for any material improvements made by the purchaser, and any such allowance shall be deducted from the proceeds of sale before the amount so payable is calculated.

(ii) In this paragraph “material improvements” means improvements made to the house (whether for the purpose of extending, enlarging, repairing or converting the house), but does not include decoration, or any improvements carried out on the land including the construction of a house.

(4) Any moneys accruing to a housing authority arising out of the resale of an affordable house under this section shall be used by the housing authority for the provision of housing or for the improvement or refurbishment of existing housing.

Shared ownership lease: purchase of interest of housing authority in house or sale of house.

10. —(1) In this section “purchaser” means a person to whom a shared ownership lease is granted.

(2) A shared ownership lease shall, subject to subsection (3), be subject to the terms or conditions that the housing authority may specify including terms and conditions relating to:

(a) notification of the housing authority by the purchaser of the proposed sale of the purchaser's interest in the house;

(b) the occupation of the house by the purchaser.

(3) (a) The terms and conditions referred to in subsection (2) shall require, subject to paragraphs (c) and (d), that where a purchaser—

(i) purchases the interest of the housing authority in the house, or

(ii) sells his or her interest in the house,

before the expiration of 20 years from the date of the shared ownership lease, the purchaser shall pay to the housing authority an amount equal to a percentage of the current market value.

(b) The percentage referred to in paragraph (a) is calculated in accordance with the following formula—

Y × 100

Z

where—

(i) Y is the difference between the market value of the house at the date of grant of the shared ownership lease, and the sale price of the house used to calculate the payment made by the purchaser in respect of the grant of the shared ownership lease, and

(ii) Z is the market value of the house at the date of grant of the shared ownership lease.

(c) The amount payable under paragraph (a) shall be reduced by 10 per cent in respect of each complete year after the 10th year during which the purchaser has been in occupation of the house as his or her normal place of residence.

(d) (i) Where the amount payable under paragraph (a) would increase the purchase price above the current market value of the house, the amount payable shall be reduced to the extent necessary to avoid that result.

(ii) In this paragraph “purchase price” means the aggregate of the following payments made by the purchaser to the housing authority in accordance with the terms and conditions of the shared ownership lease—

(I) the payment made in respect of the grant of the shared ownership lease and, where applicable, any further payments made,

(II) the payment made on the sale of the house or on the purchase of the interest of the housing authority in the house, and

(III) the amount payable under paragraph (a).

(e) (i) In calculating the amount payable under paragraph (a), due allowance shall be made for any material improvements made by the purchaser, and any such allowance shall be deducted from the proceeds of sale before the amount so payable is calculated.

(ii) In this paragraph “material improvements” means improvements made to the house (whether for the purpose of extending, enlarging, repairing or converting the house), but does not include decoration, or any improvements carried out on the land including the construction of a house.

(4) Any moneys accruing to a housing authority arising out of—

(a) the purchase of the interest of the housing authority in a house, or

(b) the sale of a house,

under this section shall be used by the housing authority for the provision of housing or for the improvement or refurbishment of existing housing.