Bileog Eolais

Scéim Tithíochta Inacmhainne

Dublin City Council, Comhairle Chathair Bhaile Átha Cliath,

Housing Development, Forbairt Tithíochta,

Housing, Social & Community Services, Seirbhísí Tithíochta, Sóisialta agus Pobail,

Block 1, Floor 1, Bloc 1, Urlar 1,

Civic Offices, Oifigí na Cathrach,

Dublin 8, Baile Átha Cliath 8.

Ph: 675 5020 Teil: 675 5020

Email: affordablehousing.unit@dublincity.ie

Website: www.dublincity.ie

What is The Affordable Housing Scheme?

The Affordable Housing Scheme provides for the sale of newly constructed houses and apartments in areas where prices have created an affordability gap for lower income house purchasers. These properties will be sold to eligible first time purchasers at prices significantly less than their actual market value.

How do I qualify for Affordable Housing?

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

You must be in permanent employment for at least one year prior to application.

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

Current Income Limits are as follows:

Single Income: Gross income must not exceed €40,000 in the previous tax year.

Two Income household: Two and a half times the principal earner (larger) plus

once the subsidiary (smaller) earner must not exceed €100,000 in the previous tax year.

These upper income limits do not apply if you are a tenant or tenant purchaser of a Local Authority or a tenant of a Voluntary Association or your name is on a Local Authority housing list.

SALE OF AFFORDABLE HOUSING PROPERTIES:

Where will I get my house purchase loan?

You must get your house purchase loan from Dublin City Council.

(Certain age limits may apply in obtaining a house purchase loan from Dublin City Council).

Are there different types of House

Purchase Loans available?

Yes. Dublin City Council has two different types of loans available to purchase an affordable home;

1) An Annuity Loan

2) A Shared Ownership Loan

An Annuity Loan is a full mortgage and is payable over a period up to a maximum of 25 years. With this type of loan there is an option of a variable interest rate or a fixed interest rate for the first five years. The maximum loan available is 97% of the purchase price and a 3% deposit is required with this type of loan. A Brochure explaining the annuity loan is available from Dublin City Council. The current maximum annuity loan available is €185,000

.

Under the Shared Ownership Scheme, the applicant acquires a minimum share of 40% of the cost of the property by way of a mortgage. The applicant will rent the remaining share from Dublin City Council. A deposit of €1,300 is required with this type of loan. The maximum Shared Ownership Loan is €250,000

A Brochure explaining the Shared Ownership Scheme is available from Dublin City Council.

If you require any further information on the types of loans available you can contact Loans, Sales and Grants, situated on Block 2, Upper Ground Floor, Civic Offices. Ph: 672 2197.

What happens if I already have loan approval

from Dublin City Council?

If you currently hold a valid provisional loan approval issued by Dublin City Council then you may use this loan approval to purchase your affordable home. You will be asked to supply your reference number and date of approval on your application form for Affordable Housing.

What about legal fees and do I need my own solicitor?

Under the Affordable Housing Scheme, Dublin City Council will provide the necessary legal services when you purchase an Affordable Housing property, and the cost of this can be added to your mortgage. (Annuity or Shared Ownership Loan). You will be advised of the amount of these fees at the time of purchase.

However purchasers are advised to seek some independent legal advise in relation to the purchase.

What loan amount should I apply for?

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

Can I get help with my monthly repayments?

Yes. If you have a combined household income of less than €25,500 p.a in the previous tax year than you will qualify for a subsidy which reduces the monthly repayments for either a Shared Ownership Loan or an Annuity Loan. This subsidy will last as long as the household income remains under €25,500 p.a. (See fig:1)

Fig: 1

Income on P.60	Yearly Subsidy	Monthly Subsidy
€13,000 and under	€2,500	€212.50
€13,001 to €15,500	€2,300	€191.67
€15,501 to €18,000	€2,050	€170.83
€18,001 to €20,500	€1,800	€150.00
€20,501 to €23,000	€1,550	€129.17
€23,001 to €25,500	€1,300	€108.33

Am I entitled to any other grants or subsidies?

If you are obtaining an Annuity Loan and you are a tenant or tenant purchaser of a Local Authority or a tenant of a Voluntary Housing Association and you are surrendering your property, you may qualify for a Mortgage Allowance.

What is the Mortgage Allowance Scheme?

The Mortgage Allowance Scheme is an allowance given to a tenant or tenant purchasers of a Local Authority or tenants of a Voluntary Housing Association who surrender their properties to purchase a property themselves.

Please note: this scheme applies only if you are granted an Annuity Loan and no other subsidies will apply once a Mortgage Allowance has been granted. This allowance has a total value of €11,500, which is payable monthly over a period of 5 years to reduce the monthly repayments. A brochure explaining the Mortgage Allowance Scheme is available from Dublin City Council.

Is my mortgage covered by Mortgage Protection?

Yes. Applicants who are over the age of 18 and under 55 are covered by mortgage protection. This payment is included in your monthly loan repayment. 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 illnesses or injury sustained prior to the completion of the purchase of your property. If you use a Shared Ownership Loan, only the mortgage part of your loan is covered by the scheme.

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 Dublin City Council.

For example

Original Market Value of Housing: €160,000

Sale Price to Affordable Housing Applicant: €127,000

% Discount Received: 20.63%

Number of years before house is resold:	Sale price on re-sale of house	Percentage of proceeds of sale due to be repaid to Dublin City Council	Amount to be repaid to Dublin City Council
5	€200,000	20.63%	€41,260
10	€200,000	20.63%	€41,260
15	€200,000	10.32%	€20,640
20	€200,000	Nil	Nil

The amount due to be repaid reduces by 10% every year after year the 10^th year.

This ‘claw-back’ on the proceeds of the re-sale of the property ceases after 20 years.

How do I apply for Affordable Housing?

Application forms for Affordable Housing will be available only when a scheme is advertised. Schemes will be advertised in the press. A once off (non-refundable) administration charge of €30.00 will apply when making a first application for affordable housing.

Please Note:

In order to ensure the best possible use of affordable properties only larger households will be considered for larger properties and smaller households for smaller properties. For example, on the basis of housing need, single purchasers may be considered for studio or one-bedroom properties, joint purchasers for one or two bedroom properties etc. Purchasers of an affordable housing property will be required to reside in the property as their full time residence.

Affordable apartments/houses will also be sold in private developments under a parallel scheme. This scheme also applies to persons with lower incomes. However, income limits do not apply. It is not expected that a significant amount of such dwellings will be provided before 2005/2006. Please note that this scheme is not covered in this brochure.

Applicants who have to the knowledge of Dublin City Council participated in activities and behaviour of an anti-social nature will be considered ineligible for affordable housing and will be advised accordingly.

April 2003.

Housing Development, Housing Social and Community Services,

Block 1, Floor 1,

Civic Offices,

Dublin 8.

Ph: 675 5020

Fax: 679 3730

Email: affordablehousing.unit@dublincity.ie

Website: www.dublincity.ie

This Brochure is for information purposes only. Dublin City Council is not responsible for any errors or omissions and will not be liable for any expense incurred in making an application under this scheme.

Booklet: AH1