Affordable Housing Survey - Clawback !

Drapper

https://survey.spss.ie/mrIWeb/mrIWeb.dll?I.Project=DOEHOUSINGSUPPLY&i.test=1

interesting for all to view and maybe answer........ and relevant on future Affordable Housing to be provided by the state!!!

Electric

This might be of interest too. It was in today's Irish Times

http://www.ireland.com/newspaper/ireland/2008/0425/1209072888019.html

The bit about having no time limit for claw back doesn't sound too good

SkepticOne

I haven't responded to the survey yet, but one thing I think would simplify the process would be to remove the requirement of builders to set aside 'affordable housing' in their estates. Instead why not give those who qualify an 'affordable housing voucher'. Then the qualified person can go ahead and pick out the appropriate house just like any other buyer and get the discount.

An 'affordable house' is not a physical house but rather it is a type of ownership. There is no need for a builder to set aside particular housing in an estate. Since there's no shortage of unsold new build houses around the country, this would largely solve the supply issue.

While the market was on the up, builders opposed affordable homes, but now on the way down, I think they will be only too happy to shift units in this way. After all, how else are they going to get rid of them?

SkepticOne

Electric wrote: »

This might be of interest too. It was in today's Irish Times

http://www.ireland.com/newspaper/ireland/2008/0425/1209072888019.html

The bit about having no time limit for claw back doesn't sound too good

Can you post a bit more of this article?

BC

http://www.ireland.com/newspaper/ireland/2008/0425/1209072888019.html

Government to review affordable housing Act

THE GOVERNMENT is to review the effectiveness of a controversial section of the Planning and Development Act which seeks to increase the supply of affordable homes. TIM O'BRIEN reports.

The review, which is to be announced by Minister of State for Housing Batt O'Keeffe today, will coincide with the publication of a report from the Affordable Homes Partnership on increasing the supply of new homes.

It also follows the announcement by Dublin City Council that it has closed its application lists for affordable housing until the end of the year. The council's housing department said it had been forced to close the list from April 21st and would not reopen it until December 31st because it cannot cope with the volume of applications.

Affordable homes are those which property developers are obliged to release at cost to local authorities under Part V of the Act. They can also be had as part of a shared ownership scheme in which the local authority and homemaker jointly share ownership of the property.

There are also schemes under a 1999 Act which incentivised local authorities to acquire land for affordable home building, either directly by the local authority, or by housing associations.

While the Affordable Homes Partnership report has found the supply of such homes has increased from about 2,000 units in 2004 to 3,600 in 2007, it makes a number of suggestions (see panel) on speeding up the delivery of housing.

Of these, the most controversial is likely to be the removal of the time limit on the claw-back measure.

Under existing schemes a local authority is entitled to a share of the profit if the affordable home it supplies is sold within specified time limits, usually 10 years. After this, the homeowners may keep whatever profit is achievable.

The Minister will begin his review with an appeal for submissions from interested parties and will also be discussing the report with social partners and housing practitioners.

Affordable houses: key points

The Affordable Homes Partnership report suggests the following measures:

• Better strategic management of delivery of new homes

• Improve existing schemes

• The provision of a standard shared equity product across all local authorities

• Removal of time limit on the claw-back mechanism

• Better management of the stock of affordable housing

• Involvement of private sector financial institutions

© 2008 The Irish Times

gurramok

Also at http://www.rte.ie/news/2008/0425/housing.html?rss

rte wrote:

The provision of Affordable Housing should be overhauled so that second-hand properties can be included, according to a new report.

At the moment, people participating in the scheme are limited to buying new houses or apartments.

The study, which was commissioned by the Affordable Homes Partnership, looks at how supply can be improved and increased in the coming years.
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The number of affordable homes increased from a nationwide total of around 1,500 in 2001 to almost 3,500 by 2006.

But ambitious targets to supply 17,000 homes in the three years to 2009 are a long way from being realised.

The report says to achieve this goal, output will have to be accelerated even further in the years ahead.

It says that at the moment there are insufficient incentives to encourage local authorities to bring forward affordable housing or minimise delivery times.

It recommends that the existing Shared Ownership Scheme should be replaced with a scheme based on the provision of an equity loan.

This would open up the second-hand housing market to the Affordable Homes initiative and allow individual purchasers to choose their desired properties, rather than picking from a set list of new developments, as is presently the case.

The report also says the existing 'clawback' system - where home owners repay the local authority a percentage of the initial discount, if they sell their properties within 20 years - should be abolished.

It says the present system acts as a disincentive for people to move, and removal of the limit would mean that existing stock could be retained as affordable properties.

The study says this move would transform the status of affordable housing stock.

It also says there is a role for the private sector in the provision of affordable housing which should be examined.

On foot of the report, the Minister of State with responsibility for Housing, Batt O'Keffe, has invited feedback from social partners, developers, financial institutions and the general public.

Interested parties can comment until the end of next month.

About bleein' time i say. They left one bit out, renaming it the 'Affordable Apartment Scheme'

Choosing 2nd homes will be a killer for developers, its about keeping communities together after all.
Ya know the concept of wanting to live in your own area at an affordable price instead of being forced to goto the likes of Balbriggan for a gaff due to artificial(they only offer new) shortage of housing in your area. 2nd hand will encourage people to stay within their own areas near family instead of feeding the depopulation of their area.

Disincentive for people to move is right, offering 2bed apts presently to single people which only suit short term needs has to come to an end.