Affordable Housing Act 2021

12.

Affordable dwelling purchase arrangements

12. (1) A housing authority may, in accordance with this Part, facilitate the purchase of affordable dwellings, in the manner provided for in this section, by eligible applicants in accordance with a scheme of priority.

(2) The purchase of an affordable dwelling shall be facilitated by means of a contribution (in this Part referred to as the “affordable dwelling contribution”) which shall be:

(a) in the case of an affordable dwelling referred to in paragraph (a) or (b) of section 5, the difference between the market value of the affordable dwelling on the date on which an enforceable agreement is made for its purchase by the eligible applicant and the price paid by the eligible applicant;

(b) in the case of an open market dwelling, the amount of the financial assistance provided by the housing authority towards the price paid by the eligible applicant.

(3) The Minister may make regulations providing for—

(a) the price to be paid by the eligible applicant referred to in paragraph (a) of subsection (2), and

(b) the amount of the affordable dwelling contribution referred to in that subsection,

to be determined having regard to the financial means of the applicant determined in accordance with section 10 .

(4) The affordable dwelling contribution shall not be less than such minimum amount or greater than such maximum amount, or less than such minimum percentage of market value or greater than such maximum percentage of market value, as the Minister may prescribe.

(5) In consideration of the provision of the affordable dwelling contribution, the housing authority shall be entitled to a beneficial interest in the affordable dwelling (in this Part referred to as the “affordable dwelling equity”) which shall be the proportion that the affordable dwelling contribution bears to the market value of the affordable dwelling on the date on which an enforceable agreement is made for its purchase by the eligible applicant, expressed as a percentage in accordance with the following formula:

((€A x 100)/€B)%

where—

(a) €A is the affordable dwelling contribution, and

(b) €B is the market value of the dwelling on the date on which an enforceable agreement is made for its purchase by the eligible applicant.

(6) The affordable dwelling contribution shall be provided and the affordable dwelling equity shall be held in accordance with an agreement (in this Part referred to as an “affordable dwelling purchase arrangement”) made between the housing authority and the eligible applicant, in such form as the Minister may prescribe.

(7) An affordable dwelling purchase arrangement shall—

(a) be made by deed,

(b) be made prior to or contemporaneously with the purchase of the affordable dwelling by the eligible applicant,

(c) record the affordable dwelling contribution (expressed as a sum) and the affordable dwelling equity (expressed as a percentage),

(d) make provision for redemption payments in accordance with section 16, sale of the affordable dwelling in accordance with section 17 and realisation by the housing authority in accordance with sections 18 and 19,

(e) make provision for the valuation mechanism,

(f) set the the date after which the affordable dwelling equity may be realised by the housing authority if not previously redeemed in its entirety by the homeowner (in this Part referred to as the “long stop date”),

(g) make provision for the realisation of the affordable dwelling equity by the housing authority on the occurrence of a realisation event, and

(h) contain covenants—

(i) prohibiting the sale, mortgage or any other form of alienation of the affordable dwelling or any interest therein without the prior written consent of the housing authority, which shall not be unreasonably withheld, and subject to any conditions imposed in such prior written consent,

(ii) requiring that unless the housing authority gives its prior written consent, the affordable dwelling shall be occupied as the normal place of residence of the homeowner or of a member of the homeowner’s household, and

(iii) making provision for the registration of the affordable dwelling purchase arrangement in the Registry of Deeds or the Land Registry, or both, as appropriate, in accordance with section 13 F1[or otherwise].

(8) The Minister may prescribe additional matters to be included in an affordable dwelling purchase arrangement, including but not limited to the following:

(a) additional covenants for the protection of the affordable dwelling equity as the Minister may prescribe, including but not limited to covenants—

(i) requiring the homeowner to keep the affordable dwelling in good and substantial repair,

(ii) prohibiting any structural alterations or additions to the affordable dwelling without the prior written consent of the housing authority, which shall not be unreasonably withheld, and subject to any conditions imposed in such prior written consent,

(iii) prohibiting the homeowner from allowing any third party to go into adverse possession of the affordable dwelling or exercise rights capable of giving rise to rights through prescription or long user,

(iv) permitting inspections of the affordable dwelling by the housing authority for the purposes of—

(I) confirming compliance with the terms of the affordable dwelling purchase arrangement, or

(II) determining market value for the purposes of this Part or the affordable dwelling purchase arrangement,

or both, having first given reasonable notice of such inspection, and

(v) making provision for the insurance of—

(I) any building, effects or other property of an insurable nature, whether affixed to the land or not, which forms part of the affordable dwelling, for the full reinstatement cost of repairing any loss or damage arising from fire, flood, storm, tempest or other perils commonly covered by a policy of comprehensive insurance, or

(II) the life of the homeowner,

or both, and for the assignment of any policy of insurance to the housing authority as security for the affordable dwelling equity;

(b) a condition that a homeowner sell or otherwise dispose of any estate or interest that he or she has, or any interest to which he or she is beneficially entitled, in a dwelling referred to in section 10(6);

(c) terms and other conditions including in relation to securing the interest of the housing authority in the affordable dwelling as the Minister may prescribe;

(d) provision for the giving or service of notices, deemed dates of delivery of notices and such other incidental matters as may facilitate the efficient operation of the affordable dwelling purchase arrangement.

(9) For the purposes of subsection (7)(f), the Minister may prescribe minimum and maximum periods between the date of an affordable dwelling purchase arrangement and the long stop date, which minimum period shall not in any case be less than 25 years.

(10) A housing authority may insure and keep insured any building, effects or other property of an insurable nature, whether affixed to the land or not, which forms part of an affordable dwelling, for the full reinstatement cost of repairing any loss or damage arising from fire, flood, storm, tempest or other perils commonly covered by a policy of comprehensive insurance.

(11) For the avoidance of doubt, an affordable dwelling purchase arrangement is not a conveyance for the purposes of section 3 of the Family Home Protection Act 1976.

(12) Nothing in this Part shall preclude a housing authority from making a loan under section 11 of the Act of 1992 to an eligible applicant for any of the purposes of this Part.

(13) A housing authority shall be entitled to assign its interest in any affordable dwelling equity and upon notice thereof being furnished to the homeowner, the assignee of the affordable dwelling equity shall hold the same subject to and with the benefit of the terms of the affordable dwelling purchase arrangement.

Annotations:

Amendments:

F1

Inserted (28.07.2022) by Regulation of Providers of Building Works and Miscellaneous Provisions Act 2022 (15/2022), s. 87, S.I. No. 409 of 2022.

Editorial Notes:

E11

Power pursuant to section exercised (13.04.2022) by Affordable Housing (No. 2) Regulations 2022 (S.I. No. 184 of 2022).