Affordable Homes

Affordable Homes

Homes for sale under the Local Authority Affordable Purchase Scheme will be available at a reduced price for buyers who are seeking to purchase a newly built home but need to bridge the gap between their mortgage and deposit to cover the full price of the home.

It should be noted that the Minimum Sale Price set by South Dublin County Council is already a reduction from the Open Market Value of the home. Those interested in purchasing a home under the Affordable Scheme must be able to demonstrate that they can afford to pay the Minimum Sale Price set.

There are currently no schemes open for Applications. There will be future opportunities for affordable housing in the SDCC area which will be advertised on our website and social media channels as they become available.

All queries on Affordable Housing can be sent to: affordablehousing@sdublincoco.ie

What is the Local Authority Affordable Purchase Scheme (LAAPS)?
Eligibility
Purchase Price
How to apply
Scheme of Priority for Affordable Dwelling Purchase Arrangements
Affordable Dwelling Purchase Arrangement
Further Information

What is the Local Authority Affordable Purchase Scheme (LAAPS)?

The Local Authority Affordable Purchase Scheme (LAAPS) provides purchasers with an equity facility. This means that purchasers will enter into an Affordable Dwelling Purchase Agreement (ADPA) with South Dublin County Council and will receive funds from South Dublin County Council in return for the Council taking a percentage ownership in the property purchased. This means that if you buy a home at a 20% reduction on the open market value, the local authority will have a 20% equity share in your home. 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.

The LAAPS is aimed at households using their combined deposit and their approved maximum mortgage but who cannot afford the home at its open market value.

Please see the attached step by step guide which gives an overview of the process to purchase an Affordable Home.

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Eligibility

You are eligible for the Local Authority Affordable Purchase Scheme if you satisfy the following criteria:

You are over 18 years of age.
You are a First Time Buyer or meet the exceptions under the Fresh Start Principle, or own a dwelling which, because of its size, is not suited to the current accommodation needs of the applicant’s household.
You have not previously purchased or built a home in the Republic of Ireland or elsewhere. Exceptions apply to Fresh Start principle applicants.
Each person included in the application must have the right to reside indefinitely in the State.
Your home must be your principal place of residence i.e. you must purchase the home to live in it.
You must need at least a 5% equity stake from the local authority.
You have a minimum deposit of 10% of the purchase price.

It is recommended that applicants have their mortgage approval in principle prior to applying for an affordable home or at least be in a position to apply for a mortgage.

Further information on income that is assessable, including rules around overtime, bonuses and commission, can be viewed here in the Income Assessment Policy Document.

**Please note: If applying as a joint application, both applicants do not need to have the same Buyer Status. One applicant can be a first-time buyer and the other can qualify under the Fresh Start Principle, however both must also meet all the other eligibility criteria.

How do I prove my right to reside indefinitely in the State?

For non-EU/EEA applicants:

Please submit a copy of your Irish Resident Permit (IRP or GNIB Stamp 4) card, indicating which permissions you have.
Single/joint applications where both applicant(s) are Non-EEA/EU, applicants must be legally resident in Ireland for a period of 5 years; or have leave to remain extending to potentially permit 5 years reckonable residence; or have indefinite leave to remain in the State.
An application from a non-EEA/EU national, who is a spouse or civil partner of the EU /EEA national, may be considered as part of a joint application for that household, provided they have a valid residence card or permanent residence card with a valid Stamp 4EUFam.

UK citizens will be regarded as being legally resides in Ireland. (This accords with the Common Travel Area requirements).

As well as the above eligibility criteria, a Scheme of Priority for households deemed eligible will apply to the scheme in the instance where there are more applicants than properties. The Scheme of Priority can be read by clicking here.

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Purchase Price

The affordable purchase price will be calculated by South Dublin County Council based on the “purchasing power” of eligible applicants. This calculation considers applicants maximum mortgage capacity and the minimum price set for the home by the Council. The Applicant’s purchasing power must not exceed 95% of the market value of the property. The purchasing power of applicants will be calculated as the combined total of:

Maximum mortgage capacity, i.e., four times gross household income, plus,
A minimum deposit of 10% of the affordable purchase price, which can include support from the Help to Buy scheme, plus,
Relevant savings, i.e., any savings in excess of the combined sum of the required deposit amount plus €30,000*.

*If you have savings above a certain amount, you may not qualify for the scheme. You can have the funds to cover the deposit on the home and an additional €30,000. Anything above this is added to your purchasing power. If this purchasing power goes above 95% of the market value of the home, you are not eligible for the scheme.

Applicants must be able to demonstrate that they can fund the purchase of an affordable home between the minimum and maximum purchase prices. If an applicant’s purchasing power is below the minimum purchase price, they are not ineligible for the scheme however they will need to confirm that they have additional funds such as a gift that will increase their purchasing power to the minimum purchase price.

Applicants with purchasing power assessed as over the maximum purchase price of the affordable units available will be ineligible for the scheme.

Mortgage Approval in Principle

It is strongly recommended that applicants have their Mortgage Approval in Principle (MAIP) in place prior to applying for an Affordable Purchase Home. An applicant will be required to input the amount they are approved for (this can be determined by your mortgage provider, mortgage calculator, or on the Mortgage Approval in Principle letter) and provide evidence of same.

Purchasers can use the Local Authority Home Loan or a mortgage from the below listed financial institutions who have entered a ‘Priorities Agreement’ with South Dublin County Council, to finance their purchase.

Local Authority Home Loan (via SDCC)
AIB
Haven Mortgages
EBS
PTSB
Bank of Ireland
Community Credit Union

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How To Apply

An individual application will be required for each Affordable Housing scheme; there is no general application form. Please email affordablehousing@sdublincoco.ie if you wish to be added to our mailing list. Applications will be accepted via our online portal. All information about the online application process is being updated and will be available in the coming weeks.

Once the application portal opens, you can proceed to complete the online application form. You will be required to submit the supporting documentation via email if your application is successful.

Please be aware that applications will be prioritised in line with the adopted Scheme of Priority for Affordable Dwelling Purchase Arrangements:

Priority will be given to eligible applicants in the date and time order that their applications were received.
A minimum of 30% of the dwellings will be allocated to eligible applicants who are or have been resident in the administrative area of South Dublin County Council for a minimum period of five (5) years.
Should the number of eligible applicants exceed the number of affordable dwellings available on the scheme, priority will be applied on the following basis:

Dwelling Type Meets accommodation needs of:

Dwelling Type	Meets accommodation needs of
Three bedroom dwelling	2 or more person household
Four bedroom dwelling	3 or more person household

Applicants will be required to submit documentation to verify their eligibility for the scheme and to assess affordability.

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Scheme of Priority for Affordable Dwelling Purchase Arrangements

As well as the listed eligibility criteria, a Scheme of Priority for Affordable Dwelling Purchase Arrangements was approved by the Elected Members of South Dublin County Council on 10th October 2022.

The purpose of the Scheme of Priority for Affordable Dwelling Purchase Arrangements is that it outlines the rules South Dublin 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.

South Dublin County Council’s Scheme of Priority for Affordable Dwelling Purchase Arrangements can be viewed here.

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Affordable Dwelling Purchase Arrangement

What is an Affordable Dwelling Purchase Arrangement?

The Affordable Dwelling Purchase Arrangement (ADPA) is the legal agreement or contract between the Council and the purchaser setting out the terms and conditions under which the Council provides the Affordable Dwelling Contribution.

Each successful applicant will enter an ADPA with South Dublin County Council. This will be done prior to closing of the purchase of their affordable home. The agreement covers the obligations of the purchaser and the Council and makes provision for the registration of the agreement with the Registry of Deeds/Land Registry. The agreement will also set out how and when the homeowner can make redemption payment(s) to reduce the Council’s affordable dwelling equity share as well as the conditions under which the Council may seek redemption of the affordable dwelling equity.

Successful applicants will be required to enter a Contract for Sale with the developer in order to complete the purchase of the affordable home. This Contract of Sale will include all standard conveyancing terms and conditions and the developer with also require confirmation of the purchasers’ Affordable Dwelling Purchase Agreement with the Council.

What is the Affordable Dwelling Contribution?

The Council will provide a contribution known as an “Affordable Dwelling Contribution” that facilitates the purchase of homes by an eligible applicant. The Affordable Dwelling Contribution is the difference between the combined total of the purchaser’s deposit and maximum mortgage capacity (and savings where relevant) and the market value of the home on the date of purchase:

[Market Value] minus [Deposit + Mortgage Capacity + Relevant Savings] = Affordable Dwelling Contribution.

What is the Affordable Dwelling Equity?

The Affordable Dwelling Equity is simply the Affordable Dwelling Contribution expressed as a percentage. It is the stake that South Dublin County Council will take in your home that covers the reduced price. This equity share will be determined by the reduced price of the property and the applicant’s purchasing power. For example, if you buy a home at a 20% discount, South Dublin County Council will have a 20% stake in your home. This does not establish South Dublin County Council as a co-owner of your home. The Equity Share will be written into the Affordable Dwelling Purchase Arrangement (ADPA).

When can the Affordable Dwelling Equity be repaid?

The Affordable Dwelling Contribution (South Dublin County Council’s equity share in your property) can be bought out by you at a time of your choosing but there will be no requirement to do so. The total amount repayable in respect of the Affordable Dwelling Contribution to remove The Council’s equity share from the property will depend on the future open market value of the home and the timing of the repayment(s).

You can decide when to make redemption repayments on South Dublin County Council’s equity share, subject to a minimum repayment amount of €10,000. Certain events can trigger the equity share to be repaid, for example, when you decide to sell your home or in the event of your death.

South Dublin County Council may not seek repayment of our affordable dwelling equity for a 40-year period. After 40 years we may request full repayment of our equity share in your home if it has not previously been paid down through redemption payments. This is referred to as the long stop date.

Can the Council demand repayment of the Affordable Dwelling Equity? (Other Equity Realisation Events)

The Council can demand the repayment of the affordable dwelling equity by serving a Realisation Notice on the homeowner on the occurrence of certain realisation events including:

The expiry period of 40 years without redemption in full of the equity share by the purchaser(s) (which will be the period during which the Council may not realise its equity share other than for breach of other conditions of the agreement).
Where the purchaser(s) die
Where the purchaser(s) commit an act of bankruptcy or are adjudicated a bankrupt.
A mortgagee, incumbrancer or receiver gains possession of the property.
The property is damaged by fire or demolished so as to materially affect its market value.
The property is abandoned or is no longer the principal primary residence of the purchaser(s).
The property is sold by the original purchaser(s).
The purchaser(s) is found to have deliberately misled the Council in respect of any material fact regarding eligibility in making their application.

A Realisation Notice will specify a period (not shorter than three months commencing on the service of the notice) after which the Council will be entitled to realise the affordable dwelling equity. The procedure for this arrangement will be clearly set out in the Affordable Dwelling Purchase Arrangement.

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Further Information

Further details on the Local Authority Affordable Housing Scheme can be found in the documents below:

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