S.I. No. 914/2005 - Housing (Mortgage Subsidy) Regulations 2005

S.I. No. 914 of 2005


The Minister for the Environment, Heritage and Local Government in exercise of the powers conferred on him by section 5 of the Housing Act 1966 (No. 21 of 1966), as amended by section 24 of the Housing (Miscellaneous Provisions) Act 1992 (No 18 of 1992) and by section 7 of the Housing (Miscellaneous Provisions) Act 2002 (No 9 of 2002), with the consent of the Minister for Finance, hereby makes the following Regulations:

1.       These Regulations may be cited as the Housing (Mortgage Subsidy Regulations 2005.

2.       (1) In these Regulations, any reference to an article is a reference to an article of these Regulations and any reference to a sub-article is a reference to a sub-article of the article in which the reference occurs.

(2)      In these Regulations -

“affordable house” has the meaning given to it in section 5 of the Housing (Miscellaneous Provisions) Act 2002 ;

“house” has the meaning given to it in section 2 of the Housing (Miscellaneous Provisions) Act 2002 ;

“household income” means the total gross annual income from all sources of the purchaser and his or her spouse or partner;

“housing authority” has the meaning given to it in section 23 of the Housing (Miscellaneous Provisions) Act 1992 as amended by section 16 of the Housing (Miscellaneous Provisions) Act 2002 ;

“Minister” means the Minister for the Environment Heritage and Local Government;

“mortgage subsidy” means a subsidy payable under section 7 of the Housing (Miscellaneous Provisions) Act 2002 ;

“purchaser” means the person or persons to whom an affordable house is sold;

“tax reference number” means

(a)      in the case of a person paying income tax under PAYE, the Personal Public Service Number (PPSN) stated on any determination of tax credits issued to that person by an inspector of taxes, or

(b)      in the case of a self-employed person or a company, the reference number stated on any return of income form or notice of assessment issued to that person or company by an inspector of taxes.

3.       A function which under these Regulations is to be discharged by a housing authority shall be discharged: -

(1) where the house provided is situated in a county by the relevant county council except where the house is situated in the boroughs of Drogheda, Sligo or Wexford or in the towns of Athlone or Dundalk;

(2)  where the house provided is situated in a city or in the boroughs of Drogheda, Sligo or Wexford, by the council of such city or borough; and

(3)  where the house provided is situated in the town of Athlone or Dundalk, by the appropriate town council.

4.       (1) A mortgage subsidy may be payable by a housing authority towards the loan charges incurred by a person to whom a housing authority makes a loan on or after 1 January 2006 for the purchase of an affordable house where household income in the preceding tax year was €28,000 or less.

(2) The amount of mortgage subsidy payable is dependent on household income as set out in the following table -


Household Income

Annual Mortgage Subsidy Payable

13,000 and under


13,001 to 15,500


15,501 to 18,000


18,001 to 20,500


20,501 to 23,000


23,001 to 25,500


25,501 to 28,000





5.       (1) A purchaser, once approved for mortgage subsidy in a particular income band, will not be moved to a lower mortgage subsidy until the totai of all subsequent increases in household income amount to three times the amount of the consequent reduction in mortgage subsidy.

(2) From 1 January 2006 -

(a)      where household income in respect of a purchaser already approved for mortgage subsidy moves to and remains in the range €28,001 to €29,000 a reduced mortgage subsidy of €500 per annum will be payable, and

(b)      where household income increases above €29,000 no mortgage subsidy will be payable.

6.       A mortgage subsidy shall not be paid unless -

(1)     the house provided is, in the opinion of the housing authority suitable for the needs of the purchaser and of those persons who might reasonably be expected to reside in the house;

(2)     the purchaser furnishes to the housing authority his or her tax reference number and details of his or her tax district together with a statement that, to the best of his or her knowledge, his or her tax affairs are in order;

(3)     on completion of the house provided or, where the purchaser has the house built on a site, on completion of its construction the purchaser occupies the house as his or her normal place of residence;

(4)      household income is €28,000 or less in the year preceding the year when the affordable house is sold; and

(5)      the purchaser applies to the housing authority for the mortgage subsidy.

7.       (1) A mortgage subsidy shall cease to be payable in the event of -

(a)      the purchaser ceasing to occupy the house provided as his or her normal place of residence; or

(b)      the housing authority applying to a court for an order for the possession of the house.

(2) Notwithstanding sub-article (1)(b), where a mortgage subsidy has ceased to be payable in accordance with that sub-article it may again become payable if the application to the court for possession of the house is not proceeded with or an order for possession granted by the court is not executed, upon the Minister being satisfied that the purchaser has reached an agreement with the housing authority in relation to the matter on which the application for possession was grounded and payment may be made of any portion of the mortgage subsidy that would have been payable, had the said application not been made, in respect of the period from the date of making the application.

8.       A mortgage subsidy may be recouped by the Minister to a housing authority in half yearly instalments (or by such other periodic payments as the Minister may determine), and the housing authority shall, upon the receipt of any such instalment (or other periodic payment), credit it as if it were a payment by the purchaser towards the mortgage repayments due.

Dated this 30th day of December 2005.




Minister for the Environment, Heritage and Local Government.

The Minister for Finance consents to the foregoing Regulations.


GIVEN under the Official Seal of the Minister for Finance.


Dated this 30th day of December 2005.





Minister for Finance.

Explanatory Note

(This note is not part of the Instrument and does not purport to be a legal interpretation.)

These regulations provide for: -

I.   Payment of a mortgage subsidy under the affordable housing scheme; and

II.  Details of income bands and mortgage subsidy amounts payable.