COMHAIRLE CONTAE ÁTHA CLIATH THEAS
SOUTH DUBLIN COUNTY COUNCIL
MEETING OF SPECIAL MEETING OF COUNTY COUNCIL
Tuesday, July 13, 2021
MOTION NO. 9
MOTION: Councillor P. Gogarty
That the Chief Executive reports on the availability of interest-free/Islamic financing models supported by SDCC in terms of its own incremental tenant purchase schemes and Rebuilding Ireland Home Loan schemes; and, if facilitating same for residents of our county requires Departmental approval, to write to the Minister for Housing asking for such schemes to be facilitated at the earliest opportunity, with all due diligence applied.
REPORT:
The Incremental Tenant Purchase Scheme 2016 is the only scheme in place for a tenant to purchase a Council owned property. This Scheme requires applicants to purchase the property outright by way of a loan from a bank or building society governed by the Central Bank of Ireland or through a House Purchase Loan, (now the Rebuilding Ireland Home Loan) from the Council. Additionally, all loans of €500 or more issued in the State, whether interest free or otherwise, must comply with the terms of the Credit Reporting Act, 2013 including inclusion of details of such loans on the Central Credit Register.
Under Section 25(1) of the Housing (Miscellaneous Provisions) Act 2014 the sale of a dwelling by the Council is discretionary. Such discretion requires transparency together with consistency in accordance with the terms of the Act and any regulations issued thereunder.
The Council, at its meeting on 14th March 2016, resolved to exclude cash buyers from the Incremental Tenant Purchase Scheme 2016. This was subsequently amended on 8th June 2020 following a recommendation by the Housing SPC, whereby it was provided that an assessment of source of funds in such cases would be undertaken with a view to permitting bona fide cash buyers, (for example by reason of inheritance, windfall, or personal injury award etc.). The Housing Department must undertake due diligence in verifying how such funds may originate and be satisfied as to their true source and compliance with all relevant legislative, taxation and any other requirements through appropriate documentary or other evidence as required.
Accordingly, any application under the Incremental Tenant Purchase Scheme 2016 where the proposed funding of the purchase of the property is not from a loan from a financial lending institution must provide satisfactory evidence of the source of such funds for consideration by the Council in determining the application.