COMHAIRLE CONTAE ÁTHA CLIATH THEAS
SOUTH DUBLIN COUNTY COUNCIL
MEETING OF SOUTH DUBLIN COUNTY COUNCIL
Monday, September 08, 2008
MOTION NO. 3
MOTION: Councillor J. Lahart
That this Council considers the Affordable Scheme in light of the downturn in housing prices generally
REPORT:
The Council’s Affordable Housing Policy adopted by South Dublin County Council on 14th April 2003 provides that applicants are treated on a first come first served basis for their position on the Affordable Housing List based on date of approval. Offers are then made in accordance with the list, using affordability and household size criteria, and based on the price and size of homes becoming available for sale.
Furthermore, to ensure that applicants are treated equally, applicants who refuse a first offer of accommodation in their chosen area of preference are moved to the bottom of the list and are removed from the list if they refuse a subsequent offer in their chosen area.
The Housing Strategy section negotiates with developers under the provisions of Part V of the Planning & Development Act 2000 (as amended) to secure 15% of new developments for social, affordable and voluntary housing and every effort is made during the negotiation process to obtain a suitable mix of 1, 2 and 3 bedroom affordable homes having regard to the requirement to provide homes at affordable prices and the mix of home sizes in the development.
A discussion document on the Council’s future policy in relation to Part V was presented to the Housing & Social Strategic Policy Committee meeting on 15th November 2007.
South Dublin County Council will always endeavour to ensure that the homes purchased under Part V for Affordable Housing are reasonablly priced for our affordable applicants. We are very conscious of the current housing market, and the consequent reduction in house prices nationally.
South Dublin County Council currently has a total of 2935 applications on its Affordable Housing List. To 15th August 2008, we have received 740 applications for Affordable Housing. To date in 2008 we have completed the sale of 33 homes and deposits have been placed on a further 206 homes.
It should be noted that despite the decrease in house values on the open market, the majority of applicants approved will continue to depend on the Affordable Housing Scheme to secure their first home. Selling affordable homes in the current economic climate is of course a challenge, as it is throughout the economy, particularly with the private financial institutions tightening their lending criteria. Of course in the approved Council Affordable Housing Scheme, our applicants had to have 3% of the deposit saved themselves, so none of our Affordable Housing applicants should have a 100% mortgage on their affordable home. Recent market valuations to enable calculation of the clawback reflect the current market position of properties. Generally the clawback is in the region of 20% of the market price.
The level of interest in the Affordable Housing Scheme should be maintained in the next few months as a large number of affordable homes in developments where a Part V agreement was in place since 2007 or prior, will become available for purchase. Available homes are currently advertised on the property path website as well as on affordablehome.ie. Mr. Michael Finneran, T.D., Minister for Housing, Urban Renewal and Developing Areas, recently launched a new national Website portal for Affordable Housing, affordablehome.ie. It is a new website portal which is a national resource to promote the concept of Affordable Housing options across the country. Every local authority in the country can advertise available affordable housing on the website, which was developed by the Affordable Homes Partnership, in conjunction with the Local Authorities. The next phase of the website will incorporate an on-line application facility.
The Department of the Environment, Heritage and Local Government requested a study be carried out by the Affordable Homes Partnership to look at how the range of existing affordable housing mechanisms might be improved or expanded by new initiatives to increase supply, accelerate delivery, improve access and affordability and to deliver value for money. The report on Increasing Affordable Housing Supply is currently being considered by the Department of the Environment, Heritage and Local Government. As part of the consultation process, the Centre for Housing Research, on behalf of the DoEHLG, engaged with the Local Authorities, the social partners and other interested party, by means of questionnaires and seminars. The consultation process was completed in June 2008. It is anticipated that any changes that may be made to the way Affordable Housing is provided will be announced nationally in the near future. In particular a new Equity Loan is being actively considered.
The downturn in houses prices has impacted on the market value of Affordable Homes, along with almost every other home in the State. Although the house prices have generally become more affordable, it should be noted that despite the decrease in house values on the open market, the majority of applicants approved on our Affordable Housing List will continue to depend on the Affordable Housing Scheme to secure their first home.