16. (1) At any time prior to a sale in accordance with section 17 or 19, and subject to the payment of any minimum amount that may be prescribed, the homeowner may redeem in whole or in part the affordable dwelling equity by means of one or more than one payment (in this Part referred to as a “redemption payment”) made in accordance with this section and the terms of the affordable dwelling purchase arrangement.

(2) The affordable dwelling purchase arrangement shall set out the following procedure for making a redemption payment:

(a) the homeowner shall give notice in writing, in such form and manner as may be prescribed, to the housing authority of his or her intention to make a redemption payment, including details of the sum intended to be paid;

(b) the market value of the affordable dwelling at the date of the notice, and the reduction in the affordable dwelling equity consequent upon the sum referred to in the notice being paid, calculated in accordance with subsection (3), shall be determined in accordance with the valuation mechanism;

(c) a redemption payment may be made not later than 3 months from the date on which the matters referred to in paragraph (b) are determined;

(d) a redemption payment made in accordance with paragraph (c) shall be accepted by the housing authority and in the event of any variation between the sum notified under paragraph (a) and the sum actually paid (including where any contribution to the cost of an independent valuer due to the housing authority in accordance with the valuation mechanism is deducted from the sum paid by way of set off), the reduction in the affordable dwelling equity consequent upon the actual sum paid shall be varied pro rata;

(e) following the making of a redemption payment, the housing authority shall give notice in writing of the revised affordable dwelling equity to the homeowner;

(f) the housing authority shall maintain and keep a record of payments made by a homeowner under this section and the revised affordable dwelling equity.

(3) The reduction in the affordable dwelling equity consequent upon a redemption payment shall be that percentage of the market value of the affordable dwelling at the date on which notice of intention to make the redemption payment is given to the housing authority that is represented by the redemption payment, and the affordable dwelling equity shall be recalculated after the making of the redemption payment as a percentage in accordance with the following formula:

X% - ((€Y x 100)/€Z)%

where—

(a) X% is the affordable dwelling equity as stated in the affordable dwelling purchase arrangement unless redemption payments have previously been made, in which case it shall be the affordable dwelling equity as revised pursuant to the last previous redemption payment made,

(b) €Y is the sum paid to the housing authority as the redemption payment, and

(c) €Z is the market value of the dwelling determined under subsection (2)(b).

(4) If the homeowner redeems the entirety of the subsisting affordable dwelling equity by means of one or more than one redemption payment, the housing authority shall, upon written request and at the expense of the homeowner, execute all documents and take all steps reasonably necessary to F5[confirm such redemption and effect the discharge or cancellation of any order or entry referred to in section 13(2)].

(5) Where a homeowner exercises his or her entitlement to redeem the affordable dwelling equity under this section after the housing authority has incurred reasonable costs in the exercise of a power or right under section 19, the homeowner shall, as a precondition to the discharge of the affordable dwelling equity, be responsible for the discharge of those reasonable costs.