Donegal County Councillor Donal ‘Mandy’ Kelly has welcomed wider access to the Local Authority Home Loan.
The scheme, which supports first-time, has been expanded to include both the purchase and renovation of vacant or derelict properties as well as new and second-hand homes.
This means that first-time buyers and fresh start applicants can receive a loan to fund both purchase and renovation works on homes eligible under the existing Vacant Property Refurbishment Grant.
Cllr Kelly says this is another lifeline for people seeking to renovate vacant properties but were constrained by the limits of the Vacant Property Refurbishment Grant, where applicants have to pay for the refurbishment works up front and claim the grant afterwards.
“This is something I had been pushing for since the grant first opened,” Cllr Kelly said.
“There were a lot of cases where people have been approved for the grant but are struggling to get the banks or the credit union to lend them the money.
“I have been pushing hard for a step down basis, where the architect signs off on three steps and the government grant is paid out in three steps. Although this is not exactly what I was looking for, I have been pushing hard for the local authority to take it onboard as well. It will give another lifeline to the property owners. Especially young families, it will give them a better opportunity and an easier start and it will help us, in the housing crisis that we have, to bring vacant and derelict buildings back into use.
Cllr Kelly added: “I want to thank the colleagues at government level for taking these concerns on board and acting on it.”
With a Local Authority Home Loan, buyers can borrow up to 90% of the market value of a residential property. In Donegal, the maximum market value of the property that can be purchased or self-built is €275,000.
The Vacant Property Refurbishment Grant offers grants of up to €50,000. If the refurbishment costs exceed the standard grant of up to €50,000, a top-up grant amount of up to €20,000 is available.
