Donegal County Council says given the escalation in house prices in the county, it has made contact with the Housing Delivery Coordination Office to see if affordable housing schemes can be established in parts of the county.
Members were told this week that Donegal County Council is one of a number of local authorities which are excluded from the scheme.
Cllr Marie Therese Gallagher moved a motion calling for that to be reversed, and for the council to agree a new policy which would see affordable homes built alongside social housing projects
Officials told her that at present, 18 local authorities are included, based on the outcome of housing need and demand assessments.
Such an assessment will be undertaken shortly in Donegal.
Cllr Gallagher says the scheme should be a nationwide one……..
Motion and reply –
MOTION
“That this Council condemn the Governments paper on Affordable Housing, which excludes Donegal
County Council from receiving funding under this scheme, and agrees to a new policy within this
Council’s housing policy to ensure affordable homes are built alongside social housing projects.”
COUNCIL REPLY
There are a number of Affordable Housing Initiatives in place at present, including the Local Authority
Affordable Purchase Scheme and the First Home Shared Equity Scheme. Under the Local Authority
Affordable Purchase, local authorities can make homes available at reduced prices for first-time buyers
and those seeking a fresh start through homes built by a Local Authority. The purchaser can buy out the
equity if they wish or it can be redeemed when the home is sold or transferred. The Scheme provides
that local authorities must demonstrate an affordability challenge, and at present the Scheme is focused
on 18 Local Authorities who are considered to have an affordability challenge. Donegal is not yet
included in the Scheme. Proposals to operate an Affordable Housing Scheme from outside these 18
Local Authorities must meet certain eligibility criteria and demonstrate an affordability challenge through
the preparation of a Housing Need and Demand Assessment (HNDA). In Donegal, the HNDA will be
undertaken during the preparation of the Housing Strategy of the review of the County Development Plan
which has now commenced. Subject to the outcome of the HNDA, it may then be open to the Council to
make a proposal to provide an Affordable Housing Scheme in Donegal. Given the escalation in house
prices in the County, the Council has made contact with the Housing Delivery Coordination Office with a
view to determining if the Council can make a case for affordable housing for specific locations pending
the completion of the HNDA. Further follow up is planned in this regard with the HDCO and the
Department, and the Members will be updated on further developments in relation to same. The Council
intends to construct houses under this Scheme once the County or specific locations within the County
are included in the Scheme. The First Home Shared Equity Scheme is another Affordable Scheme, which
is available in all counties, and is available to help first time buyers and other eligible homebuyers to
purchase a newly built home in a private developments. The Scheme is operated through a State
partnership with participating banks and up to 30% equity support is available with banks matching
exchequer funding support to bridge the gap between the deposit and mortgage and the price of the
new home. Homes will be subject to area based price ceilings and the current maximum price ceiling for
Donegal is €325,000. The Local Authorities have no role in the Scheme but further details are available
at www.firsthomescheme.ie.
