Over the period 2003 to 2009 this Council has sourced affordable homes for approximately 1,900 families through a number of joint venture arrangements with developers who had land holdings adjacent to the Councils lands, through the affordable housing initiative using government lands, through government subsidised housing delivered via the Affordable Homes Partnership, and through Part V of the Planning & Development Act 2000 as amended. These affordable homes were provided at substantial discounts on the open market value, in some cases a discount of up to 40% of the open market was available. Provision was made in the Planning & Development Act 2000 to apply a claw back in the event of a re-sale of an affordable home in order to prevent inappropriate profits arising from the sale of an affordable home.

 However, on the sale of an affordable home in a depreciating market, provision is made within the legislation which allows the Local Authority reduce the amount due under the claw back where a borrower would suffer a loss as a result of the claw back. Where the re-sale price is lower then the original affordable purchase price the claw back amount due is zero. The benefits of the original discounts that were available to affordable purchasers have given substantial protection against the current negative equity market conditions. Despite the foregoing legislative provisions, it is possible that affordable home owners could find themselves in a negative equity position because of the current market conditions. The latter is outside the control of the local authority. Affordable home borrowers who have their loan with South Dublin County Council and are encountering difficulties with repayments are encouraged to contact the loan accounts section with a view to making a suitable arrangement and avoid letting arrears escalate out of control, borrowers may be entitled to a subsidy and budgeting  advice is also available through the Money Advice Bureau . A high number of affordable home borrowers do have their loans with financial institutions.

  In relation to owners who have purchased on the open market the Council are very limited in what they can do to combat the effects of the current negative equity market. Should they lose their home through re-possession, they may contact the Housing Allocations section or they may be in a position to rent privately and obtain rent supplement from the Community Welfare Service. When it comes to dealing with negative equity, this is a national issue and therefore South Dublin County Council is not in a position to determine policy on the matter. If the motion is passed the matter will be referred to the Minister for the Environment, Heritage and Local Government and the Minister of the Department of Finance.