Re: Government is looking at changing the legislation regarding the clawback.
Got this mail back from the minister this morning
I have been asked by Mr. John Gormley, T.D., Minister for the
Environment, Heritage and Local Government to refer further to your
email concerning remortgaging of affordable housing.
Affordable housing is targeted at first time buyers; those who wish to
get on to the property ladder but cannot do so because house prices are
outside their means. Houses sold to first time buyers under the various
affordable housing schemes at a significant discount from market value
contain a clawback provision, in order to prevent short-term profit
taking on the resale of the house, to the detriment of the objectives of
the schemes.
The Clawback, which represents the State’s interest in the dwelling,
is only activated where the house is resold before the expiration of 20
years from the date of purchase whereby the person selling the property
must pay to the housing authority a percentage of the proceeds of the
sale. After ten years, the amount repayable is reduced by 10% in
respect of each complete year thereafter during which the purchaser has
been in occupation of the home as his or her normal place of residence.
Legislative provision to facilitate arrangements under which a local
authority could agree to its clawback charge ranking in second place
behind a new or topped-up mortgage charge, thereby facilitating persons
in affordable housing wishing to re-mortgage with a private lender, is
being considered in the context of the Housing (Miscellaneous
Provisions) Bill 2008, which is currently before the Oireachtas.
The Bill completed all stages in the Seanad on 10 December 2008. It is
due to be scheduled for second Stage in the Dail this month with
committee stage to follow in early May. The target is to have the Bill
enacted by the summer recess.