S.I. No. 40/1977 - Housing Authorities (Loans For Acquisition Or Construction of Houses) (Amendment) Regulations, 1977.

S.I. No. 40 of 1977.

HOUSING AUTHORITIES (LOANS FOR ACQUISITION OR CONSTRUCTION OF HOUSES) (AMENDMENT) REGULATIONS, 1977.

The Minister for Local Government, in exercise of the powers vested in him by sections 5 and 39 of the Housing Act, 1966 (No. 21 of 1966), with the consent of the Minister for Finance, hereby makes the following regulations:—

1. In these Regulations, " the Principal Regulations " means the Housing Authorities (Loans for Acquisition or Construction of Houses) Regulations, 1972 ( S.I. No. 29 of 1972 ) as amended by the Housing Authorities (Loans for Acquisition or Construction of Houses) (Amendment) Regulations, 1973 ( S.I. No. 250 of 1973 ).

2. (1) These Regulations may be cited as the Housing Authorities (Loans for Acquisition or Constitution of Houses) (Amendment) Regulations, 1977.

(2) These Regulations and the Principal Regulations may be cited together as the Housing Authorities (Loans for Acquisition or Construction of Houses) Regulations, 1972 to 1977.

3. Notwithstanding the provisions of article 3 (1) (g) of the Principal Regulations a loan not exceeding £7,500 or 98% of the value of the house (excluding from that value the amount of any grant under any enactment) whichever is the less may be made in the case of a house to be occupied by—

(a) a tenant of a dwelling provided by a housing authority who has satisfied the housing authority making the loan that, on the making of the loan, he will surrender his tenancy to the housing authority which provided the dwelling,

(b) a person who had been the tenant of a dwelling provided by a housing authority and who purchased such dwelling under an approved purchase scheme under the Housing Act, 1966 or his successor in title, where such person or his successor in title has satisfied the housing authority making the loan that, on the making of the loan, he will convey his interest in such dwelling to the housing authority which provided the dwelling,

(c) a person—

(i) who, not later than one year prior to the application for the loan, had applied to a housing authority for a tenancy in a dwelling provided by the housing authority, and

(ii) whose family at the time of the application for a tenancy comprised that person and at least two persons, and

(iii) who had satisfied that authority that he was in need of rehousing by reason of the dangerous, structurally unfit or overcrowed conditions of his existing dwelling and because his financial circumstances were such that he could not reasonably be expected to secure adequate dwelling accommodation from his own resources, and

(iv) whose family is still in need of rehousing.

4. (1) Where the amount of a loan to which article 3 of these Regulations applies is not less than £5,600 the amount of the interest payable in respect of the loan may be reduced in the first year by a sum of £234, in the second year by a sum of £208 and in each succeeding year, up to and including the ninth year, by the amount of the reduction in the previous year diminished by £26 per year.

(2) Where the amount of a loan to which article 3 of these Regulations applies is less than £5,600 the amount of the interest payable in respect of the loan may be reduced, in the first year, by a sum which bears the same relation to the amount of the loan that £234 bears to £5,600 and in each succeeding year up to and including the ninth year by that sum diminished by one-ninth annually.

(3) Where the amount of a loan to which article 3 of these Regulations applies is not less than £5,600 and where the housing authority so decides, the amount of the interest payable in respect of the loan may be further reduced in the first nine years by amounts not exceeding those specified in sub-article (1).

(4) Where the amount of a loan to which article 3 of these Regulations applies is less than £5,600 and where the housing authority so decides, the amount of the interest payable in respect of the loan may be further reduced in the first nine years by amounts not exceeding those specified in sub-article (2).

5. Where in relation to a loan to which article 3 of these Regulations applies, the repayments are reduced in the manner set out in article 4 of these Regulations, it shall be a condition of the instrument securing the loan that the borrower will, in addition to repaying the capital sum outstanding, pay to the housing authority in the event of redemption of the loan or a transfer of his interest in the house to a person other than his spouse, son or daughter—

(a) during the period of nine years after the making of the loan, a sum equivalent to the difference between the total amount that would have been payable up to the date of redemption or transfer if the repayments had not been reduced and the amount payable by reason of the reduction.

(b) during the tenth year after the making of the loan, four-fifths of the difference between the total amount which would have been payable during the nine year period if the repayments had not been reduced and the amount paid in that period by reason of the reduction,

(c) during the eleventh year after the making of the loan, three-fifths of the difference between the total amount which would have been payable during the nine year period if the repayments had not been reduced and the amount paid in that period by reason of the reduction,

(d) during the twelfth year after the making of the loan, two-fifths of the difference between the total amount which would have been payable during the nine year period if the repayments had not been reduced and the amount paid in that period by reason of the reduction,

(e) during the thirteenth year after the making of the loan, one-fifth of the difference between the total amount which would have been payable during the nine year period if the repayments had not been reduced and the amount paid in that period by reason of the reduction.

6. Article 3 (2) of the Principal Regulations is hereby revoked.

GIVEN under the Official Seal of the Minister for Local Government this 16th day of February, 1977.

JAMES TULLY,

Minister for Local Government.

The Minister for Finance hereby consents to the foregoing Regulations.

Dated this 16th day of February, 1977.

RICHIE RYAN,

Minister for Finance.

EXPLANATORY NOTE.

These Regulations amend the Housing Authorities (Loans for Acquisition or Construction of Houses) Regulations, 1972 and 1973 ( S.I. No. 29 of 1972 and 250 of 1973).

The Regulations provide for the making of a loan not exceeding £7,500 or 98% of the cost of a house to—

(a) the tenant or tenant purchaser of a local authority house who, on receiving the loan will surrender his tenancy or interest, and

(b) a family of not less than three persons who had applied to, and been accepted by, a housing authority at least one year before making application for the loan as being in need of rehousing because of dangerous, unfit or overcrowded conditions of their existing accommodation and because their financial circumstances were such that they would not have been able to provide proper dwelling accommodation from their own resources.

The Regulations also provide for reductions in the annual repayments during the first nine years of the loan and for repayment of all or part of the total amount by which the repayments were reduced, in the event of a redemption of the loan or a transfer of interest within thirteen years of the making of the loan.