Donegal County Council is promoting the provision of houses under the Affordable Housing Scheme for First Time Buyers in Manorcunningham.
The Affordable Housing Scheme provides for the building of new houses in areas where house prices have created an affordability gap for lower income house purchasers. The houses will be offered for sale to eligible first time purchasers at a significant discount from the market value of comparable houses in the area.
The units will form part of a social and affordable development at Abbey Park, Manorcunningham, which will also incorporate a playground.
What Price are they?
The houses will be offered for sale for €115,000. The sale prices will represent roughly a 35% discount on market value.
Who qualifies?
You may apply to your local authority for affordable housing if you are:
- in need of housing and your income satisfies the income test below, or
- a person whose application for local authority housing has been approved by the local authority, or
- a local authority tenant or tenant purchaser who wishes to buy a private house and to return their present house to the local authority, or
- a tenant for more than one year of a house provided by a voluntary body under the Rental Subsidy Scheme who wishes to buy a private house and return your present house to the voluntary body,
How does the income test apply?
Single income household
- Multiply your gross income (before tax) in the last income year by 2.5. If the result is €100,000.00 or less you are eligible.
Two income household
- Multiply the gross income (before tax) of the principal (greater) income in the last income tax year by 2.5 and add the gross income of the subsidiary (lesser) earner in the last income tax year. If the result is €100,000.00 or less, you are eligible.
If my application is successful, how do I purchase one of these houses?
The house will be purchased outright by way of a mortgage provided via participating financial institutions or by the County Council.
Is there any Mortgage Subsidy for those on lower incomes?
Yes. An income related subsidy will be available to reduce the mortgage payments of purchasers with a household income (gross) of up to €28,001.00 in the preceding year, where the mortgage is provided by the Council.
A household, surrendering a house rented by a local authority or a voluntary housing body, which does not qualify for the income related subsidy under this scheme, may be eligible for the existing, longer standing mortgage allowance to reduce their mortgage payments in each of the first five years of the mortgage – by €3,560 in the first year, €2,800 in the second year, €2,040 in the third year, €1,780 in the fourth year and €1,270 in the fifth year.
Can I re-sell my “affordable house”?
Yes, but there is a clawback provision, i.e. a percentage of the sale price has to be returned to the local authority.
Where and when can I get more information?
Further information will be available from the Housing Department, Donegal County Council, Letterkenny Public Services Centre (Phone 074 9194200). Application forms will also be available.
Applications should be submitted to the Housing Dept., Letterkenny Public Services Centre, by 4.30 on Friday 29th February 2008.
An Information Evening will be held in the Letterkenny PSC on Wednesday 13th February 2008 in relation to the above.