Frequently Asked Questions

This page provides information on eligibility criteria, the application process, property details and shared equity requirements for a pilot affordable purchase housing scheme at Kilcarbery Grange, Dublin 22.

Where are the Affordable Homes located?

South Dublin County Council, “the Council”, has an arrangement in place with a developer for the sale of sixteen affordable homes at Kilcarbery Grange to eligible affordable housing applicants nominated by the Council.  These homes are located on Rowan Walk and Hawthorn Walk within the Kilcarbery Grange development.  See http://kilcarberygrange.ie/siteplan/

Further details of the overall development are available at www.kilcarberygrange.ie

Who is eligible to apply?

As this is a pilot affordable housing scheme before the introduction of a formal Affordable Housing Scheme, the Council has determined the eligibility criteria for this pilot scheme.  Accordingly, applicants wishing to be considered for Affordable Housing at Kilcarbery Grange must:

• Be a first-time buyer and not own or have a legal interest in a dwelling
• Have a gross total annual household income of €73,362 or less
• Be in a three or more-person household that intends the affordable home to be that household’s normal place of residence.
• Have the right to reside indefinitely in Ireland. Citizens of a member state of the EU/European Economic Area can apply if they are living and working in Ireland. Non-Irish/EU/EEA citizens must have indefinite leave to remain in the State.

50% of the affordable homes for sale will be reserved for applicants who are currently resident in the administrative county of South Dublin for a minimum of twelve months.

When and how can affordable housing applications be made?

Applications will be accepted through an online application system only. The system will allow for input of all relevant data and successful applicants will subsequently be requested to upload all required supporting documentation.  Applicants must firstly “Register as a new client” on the Council’s Housing Online (HOL) system (see https://www.sdcc.ie/en/services/housing/housing-online/ for more details).  Please note that the deadline for applications for this scheme has now closed.

In the online application process, applicants will have to:

• confirm that they are a First-Time Buyer
• provide details (name, date of birth, PPSN) for all members of their household
• declare the total gross annual income for their household
• confirm mortgage approval, deposit (which can include support from the Help to Buy scheme) and savings.

Supporting documentation will be required for application details before an applicant is approved for the purchase of an affordable home.  All application details and data submitted will only be retained for this scheme and will not be carried forward for any future affordable housing scheme(s).

Applicants who submit multiple applications and/or include any false or misleading information on their application will be disqualified from this process.

How will successful applicants be decided?

For this pilot scheme, all applicants who are eligible and submit a valid application will be entered into a computerised draw to select an order of priority for successful applicants to be given the opportunity to purchase one of the properties, subject to at least 50% of such eligible applicants being currently resident in the administrative county of South Dublin for a minimum of 12 months.

Selected applicants will be required to fully verify their application details and offered the opportunity to purchase a property in sequence until all properties have been sold.

The developer is not involved in the administration or the selection process for this affordable housing scheme.

What type of properties are available for purchase?

In this pilot affordable housing scheme, 16 homes are being made available for purchase as follows:

• Eight no. type L2 homes: 3-bedroom lower duplex (ground and first floor) mid/end terrace (c. 107 sq.m./c. 1,151 sq.ft.), named “The Elderberry”, see floor plans here.
• Eight no. type L3 homes: 3-bedroom upper duplex (second and third floor) mid/end terrace homes (c. 122 sq.m./c. 1,313 sq.ft.), named “The Buttercup”, see floor plans here

When will the properties be available?

The development at Kilcarbery Grange, Dublin 22 is currently under construction.  The affordable homes will be delivered in the first phase of the development and are currently expected to be completed in June 2022.

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.  For subsequent valuations of the property, a valuation mechanism will be set out in the Affordable Dwelling Purchase Arrangement.  A valuation will be required when a redemption payment is being made by the purchaser.

Over time, if the value of the affordable home increases, the amount owed on the value of the equity share will increase in line with the prevailing market value.

The market value of the properties is:

• Type L2 (3-bedroom lower duplex homes): €307,000
• Type L3 (3-bedroom upper duplex homes): €317,000

What is the affordable purchase price of these properties?

The affordable purchase price for the properties will be discounted on the market value and based on the specific purchasing capacity of eligible applicants.  The Council will provide an “Affordable Dwelling Contribution” to reduce the purchase price payable now by successful applicants.

Discounts ranging from a minimum of 10% of the market value to a maximum of 20% of market value will be available depending on successful applicants’ income, deposit (which can include support from the Help to Buy scheme) and savings, with price ranges as follows:

Applicant “purchasing power” will determine the price that they pay for the affordable home.  Indicative pricing based on sample income and deposit levels relative to the minimum and maximum affordable purchase prices for the two available property types are shown below as a guide for potential applicants:

The purchasing power shown above will equal the affordable purchase price for eligible and successful applicants.

Households with lower total incomes than those stated above, but with additional savings, may be eligible to purchase an affordable home in this scheme. In such cases, the level of savings that they can contribute may impact the level of equity stake for their purchase.

How is purchasing capacity calculated?

The purchasing capacity of applicants will be calculated as the combined total of:

• Maximum mortgage capacity, i.e., 3.5 times gross household income, plus,
• A minimum deposit of 10% of the affordable purchase price, plus,
• Relevant savings, i.e., any savings in excess of the combined sum of the required deposit amount plus €30,000.

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.  Please see Revenue.ie for more details.

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?

This “Affordable Dwelling Contribution” will be expressed as a percentage to calculate the “Affordable Dwelling Equity”, or equity share, that the Council will retain in the home.  For this pilot scheme, the “Affordable Dwelling Contribution” will be between 10% and 20% of the market value of the homes.

Indicative sample “Affordable Dwelling Equity” calculations are included below for guidance:

When can the “Affordable Dwelling Equity” be repaid?

It is a condition of this scheme that the Council will register a charge on the property equal to the “Affordable Dwelling Equity”, or equity share, representing the percentage discount below market value that the home is purchased for.  The “Affordable Dwelling Equity” will in general become repayable upon the subsequent sale of the property or after thirty years.  The total amount repayable in respect of the “Affordable Dwelling Equity” to remove the Council’s shared equity interest from the property will depend on the future market value of the home and the timing of the repayment(s).

The Council’s equity share in the property must be repaid in full, but the timing of repayment(s) is flexible.  From five years after their purchase. purchasers can decide when to make redemption repayments on the equity share, subject to a minimum repayment amount of €10,000, or the equity share can be repaid when the purchaser subsequently decides to sell the property.  The Council will keep a record of all redemption payments made by the purchaser, revising the affordable dwelling equity percentage accordingly.  When the full equity share is repaid, the Council will discharge it in the Registry of Deeds/Land Registry.

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:

1. The expiry period of 30 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)
2. Where the purchaser(s) commit an act of bankruptcy or are adjudicated bankrupt.
3. A mortgagee, incumbrancer or receiver gains possession of the affordable dwelling.
4. The dwelling is damaged by fire or demolished so as to materially affect its market value.
5. The dwelling is abandoned or is no longer the principal primary residence of the purchaser(s)
6. The property is home is sold.
7. 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.

What is an Affordable Dwelling Purchase Arrangement?

The Affordable Dwelling Purchase Arrangement 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 into an Affordable Dwelling Purchase Arrangement with South Dublin County Council.  This will be prior to or at the same time as the 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 into 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.

Do applicants need to have mortgage approval in place?

Yes.  For this pilot scheme, applicants are required to have mortgage approval because the homes are currently under construction and are due for completion by June 2022.

Purchasers can use the Local Authority Home Loan or a mortgage from any private lending institution, such as a bank or building society, to finance their purchase. Where a purchaser is not availing of the Local Authority Home Loan through the Council to purchase the home, a separate ‘Priorities Agreement’ between the Council and the bank providing the mortgage to the purchaser will be necessary.   This agreement between the Council and the bank will not impact on the purchaser but will record that the Council will retain an equity share in the property and will provide that the bank’s interest will take priority.

Successful applicants will need to provide a Mortgage Approval in Principle letter from their proposed lender to be considered.

Can persons who are not a first-time buyer apply?

No, for this pilot scheme, only first-time buyers are being considered.

What documentation may the Council request to verify an application?

Some, or all, of the following documentation may be required from successful applicants as part of the verification of their application details:

• Proof of income (e.g., current salary certificate for PAYE employees; Accountants Report/Audited Accounts/Current Tax Balancing Statement/Current Preliminary Revenue Tax Payment Receipt for self-employed persons)
• Evidence of first-time buyers’ status, i.e., confirmation of eligibility for Help to Buy.
• Mortgage loan approval letter
• Proof of residency e.g., clearly dated utility bills, rental agreements or other correspondence, demonstrating the length of current residency of a minimum of twelve months in the South Dublin administrative area for relevant applicants.