An Affordable Housing Scheme (AHS) is a program where the Local Authority assists members of the public to purchase a housing unit by purchasing a percentage of the house they wish to buy. The percentage of equity bought by the Local Authority will vary depending on the purchasing power of the applicant, housing density of the development, market conditions and other factors. Each application will be assessed on a case by case basis.
Clare County Council Affordable Housing SchemeClare County Councils Affordable Housing Scheme is currently at a stage where expressions of interest are being sought to ascertain the public’s interest in availing of such a scheme. Data collected in this survey will be used as part of an application to the Department of Housing, Local Government and Heritage to run such a scheme in Ennis and Shannon. Areas outside of Ennis and Shannon do not comply with the requirements as set out by the Department of Housing, Local Government and Heritage for inclusion.
How does the scheme work?
- The scheme applies to new-build houses and apartments where the developer has agreed for the housing units to be included.
- The support provided by the local authority takes the form of an equity share on the home.
- To participate in the scheme, applicants will be required to maximise their mortgage drawdown capacity (4 times a household income, from a participating bank, according to the Central Bank’s macro-prudential rules).
- Applicants may be able to avail of the Local Authority Home Loan.
- Applicants may be able to avail of the Help to Buy Scheme.
- The maximum financial support available on each home will be established by the local authority delivering the homes.
- The purchaser can redeem (buy-out) this equity share at a time of their choosing but there will be no requirement to do so.
- If the purchaser chooses not to redeem the equity share while living in the home, the local authority can do so when the property is sold or transferred, or after the death of the owner.
- The equity share required will not be less than 5% and not greater than 25% of the market value of the dwelling.
Who is the scheme for?
- Households which, using their combined deposit and their approved maximum mortgage, cannot afford the home at its open market value.
- The scheme is targeted at first-time buyers with the greatest affordability challenges.
- Provision is also made for:
- Divorced or separated individuals who do not retain an interest in a home previously owned with their former spouse/Civil Partner
- A limited category of second-time buyers (those who purchased previously but whose home is now demonstrably too small for their household needs)
- Applicants who previously purchased a dwelling but who sold it or became divested of it as part of insolvency/bankruptcy proceedings.
- Affordable Purchase Dwelling Arrangements Income Assessment Policy [PDF, 66KB]
- Have a minimum deposit of 10% of the purchase price of the property.
- Currently have a legal right to reside and work in the State and be able to demonstrate that they are habitually resident in Ireland.
When and how can affordable housing applications be made?
This process is an expression of interest for affordable housing to review the need for affordable housing in Clare. The Council will publish a notice on social media and our website, at least 3 months before the houses are available for sale, giving details of how to make an application for affordable housing, types and locations of properties available, income limits and minimum/maximum sale prices
What is the market value of the properties?
The market value of an affordable home is the price for which the affordable home might reasonably be expected to achieve on the open market. The initial market valuation of the home to calculate the equity share is carried out by the Council.
What deposit is needed?
Financial institutions require that a minimum 10% deposit must be raised by purchasers. The Help to Buy Scheme operated by the Revenue Commissioners can help with the deposit needed to purchase these affordable homes. For more information visit the Revenue website.
Page last reviewed: 24/01/23Back to top
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