This scheme was designed to enable Local Authorities to assist persons to improve or extend privately owned houses occupied or intended to be occupied by an approved applicant for housing as an alternative to the provision of Local Authority Housing. Funding under the scheme is provided by way of a loan, the repayment of which is related to your ability to pay.
What Houses Qualify?
The Local Authority may provide assistance by way of a loan to carry out improvement works under this scheme to privately owned houses which are
owned by the applicant, where the house is defective or overcrowded for the needs of the applicant, or
owned by a relative of the applicant where the house is defective or would be overcrowded when the applicant moves into the house.
Private rented housing is not eligible under this scheme.
What Works Qualify?
The Local Authority may provide a loan to carry out any works to eliminate defects in the house or to provide additional accommodation where this is necessary to eliminate overcrowding or to accommodate a person not residing in the house who is approved for local authority housing.
How does the local authority choose what houses to improve?
The local authority will take into account the urgency of individual housing needs when choosing houses to improve or extend under the scheme, It will, also, have regard to the cost effectiveness of the proposal.
Why should I consider the scheme?
The scheme has the advantages that persons in housing need can remain in their existing homes and neighbourhoods and, at the same time, enjoy decent housing conditions sooner than they otherwise might.
What payments are involved?
Subject to the availability of finance the Local Authority will approve a loan for the full cost of any work considered necessary to improve the house to an acceptable standard. Payment of the loan will be made in two or three stages at your request. You should note that the council’s engineer will only be certifying the value of the work carried out and not the manner in which it was carried out.
You will pay a reasonable weekly or monthly charge in respect of the Local Authority’s costs for a maximum of 15 years, If within the 15-year period, the total of your payments equal the cost to the Local authority, the weekly or monthly charge will then cease.
It is a condition of the loan scheme that the borrower is responsible for payment of a proportion of the legal fees involved in the processing of the loan through the Council’s Solicitors. The fees may be incorporated in the overall loan amount approved and then may be met from the repayments made by you under the terms of the scheme. If you require the fees to be added to your loan please advise this office in writing immediately in order that same can be arranged. You are also responsible for all legal fees incurred by your own solicitor, again the fees may be included in the overall loan amount approved.
The charge will vary during the 15 year period to take account of changes in your circumstances and changes in the authority’s rent scheme. The payments are therefore, related to your ability to pay.
The security required to protect the council’s investment in your house will be in the form of a legal charge registered against the property until the 15 years have expired or sooner if the rent paid equals the expenditure incurred by Donegal County Council.
Can I sell the house if I wish?
You can sell the house at any time. However, if the house is sold before the total of your repayments equals the cost of the works or within 15 years of the works being carried out, whichever is the sooner, you must make a repayment to the Authority. The amount of that payment will be 1/15th of the cost of the work for each year between the date of the sale and the expiry of 15 years from completion of the work.