Local Authority Affordable Purchase Scheme
What is the Local Authority Affordable Purchase Scheme?
Under the Affordable Housing Fund, Kilkenny County Council will make homes available at a reduced price for eligible applicants who are seeking to purchase a newly built home but need additional funds to bridge the gap between their mortgage and deposit to cover the full price of the home.
In return, Kilkenny County Council will take a percentage Equity Share in the Affordable Home. Purchasers will enter into an Affordable Dwelling Purchase Agreement with Kilkenny County Council.
The purchaser can redeem or ‘buy out’ this Equity Share at a time of their choosing but there is no obligation to do so. If the purchaser chooses not to redeem the Equity Share while living in the home, the Council can do so when the property is sold, transferred or after the death of the owner.
It is proposed to deliver these homes on Council owned land and through agreements with Private Developers.
Who is the Scheme for?
The scheme is aimed at households who cannot afford a home at its open market value using their combined deposit, their approved maximum mortgage and savings.
The scheme is open to the following persons:
- A First-Time Buyer, who is defined as a person who:
- Has not previously purchased or built a dwelling in the Republic of Ireland or elsewhere for his/her/their occupation, and
- Does not own or is not beneficially entitled to an estate, or has interest in any dwelling in the Republic of Ireland or elsewhere, and
- Has a right to reside in the Republic of Ireland.
- A person may also be eligible if they satisfy the Fresh Start Principle guidelines as follows:
- has previously purchased or built a residential property, but is now divorced or separated and has divested him or herself of any interest in that property
- has undergone personal insolvency or bankruptcy arrangement or proceedings or other legal process, will be eligible to apply.
- Applicants that previously owned, were beneficially entitled to, or have an interest in a dwelling in the state and that this dwelling, because of its size, is not suited to the current accommodation needs of the applicant’s household i.e., house overcrowded, may be eligible to apply.
Applicants must be:
- Over 18 years of age
- The home must be used as the home buyer’s Principal Private Residence.
How does the Scheme work?
- The scheme applies to specific new-build homes.
- The property must be used as your primary residence.
- The support provided by the local authority takes the form of a percentage 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 from the local authority on each home will be established by the local authority delivering the homes.
- The minimum equity share required will not be less than 5% of the market value of the dwelling.
- The purchaser can redeem (buy-out) the 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 or after 40 years.
What are the eligibility criteria?
To be eligible for a property under the Local Authority Affordable Purchase Scheme, the following criteria apply:
- The combined gross household income of all of the persons making the application, is below a certain level. This is calculated by multiplying the gross household income by 4. This must be less than 85.5% of the market value of the Affordable Home. The applicant’s gross household income plus deposit plus excess savings must not exceed 95% of the market value of the home.
- None of the persons making the application has previously purchased or built a dwelling in the state for his or her occupation. (Exceptions apply – See Kilkenny County Council Information Booklet).
- None of the persons making the application owns, or is beneficially entitled to an estate or interest in, any dwelling in the State or elsewhere.
- Each of the persons making the application has a right to reside in the State indefinitely.
Please refer to Kilkenny County Council Information Booklet for further detail.
Scheme of Priority
As well as the listed eligibility criteria, a Scheme of Priority for Affordable Dwelling Purchase Arrangements was approved by the Elected Members of Kilkenny County Council on February 20th 2023.
The purpose of the Scheme of Priority is to outline the rules Kilkenny County Council uses to decide which applicants will be offered dwellings. The Scheme of Priority will apply in the event where there are more eligible applicants than Affordable Homes available.
View Kilkenny County Council’s Scheme of Priority
When and How do I apply?
There will be an individual application process for each Affordable Purchase Scheme.
Please note: there is no general application form or waiting list
When Affordable Homes are made available for purchase, they will be advertised in the following places:
- Kilkenny County Council’s website
- Kilkenny County Council’s Social Media pages and
- In a Local newspaper
The advertisement will include details about the scheme including the houses available for sale, types and locations of properties available, income limits and minimum / maximum sale price along with how and when to apply.
Applications will be accepted through an online application portal only. On the day the application portal opens, the applicant/s will first need to register on the portal and then can proceed to complete the online application form and submit the requested documentation.
Please be aware that applications will be prioritised on a first come first served basis.
A link to the application portal along with a list of the required documentation will be available on Kilkenny County Council’s website. A video guide of how to complete an application will also be available in advance. The system will allow for input of all relevant data and applicants will be required to upload supporting documentation.
Applicants should ensure that they have gathered together all the necessary supporting documentation in advance of the application date as date and time of receipt of complete applications with all the required documentation will be one of the criteria on which eligible applications will be prioritised under the Council’s Scheme of Priority.
A detailed list of all supporting documentation required as part of an application under the LA Affordable Purchase Scheme is outlined in the Kilkenny County Council Information Booklet.
Where are the Affordable Homes located?
Information on property location, property types, size and price will be advertised on Kilkenny County Council’s website, Social Media pages and on a Local newspaper as each Affordable Housing Scheme is announced in advance of the open date for applications.
More information on Affordable Housing
All queries on Affordable Housing can be sent to: email@example.com