Rebuilding Ireland home loan funding
Deputy Munster said approved applicants in Louth were waiting for central funding before loans could be issued. The Minister for Housing said local authorities should continue honouring approvals because funding remained in the initial tranche, though a second tranche would be needed as demand was high.
The Rebuilding Ireland home loan scheme falls under the programme for Government. A response I received from Louth County Council about a loan states:
The loan has been approved at credit committee but Louth County Council are awaiting funding and [the applicant] will be contacted when funding is released by central government. We are not in a position to release funds at the moment as we have not received our allocation.
There are at least 17 other applicants left in that same limbo in County Louth alone. One of those applicants has been served with a notice to quit from their landlord and is facing into homelessness next month. If the Government continues to withhold the funding for these home loan schemes, it will force some people into homelessness. If the interest rate changes, those home loan contracts will have to be redrawn, causing further delay. The Taoiseach and Minister should forget the announcements, spin and PR stunts.
Comment on this
When will the Government release the funding for these home loan schemes so that people who want to purchase their home and have been turned down by the banks have the opportunity to purchase their home under the Rebuilding Ireland home loan scheme?
Comment on this
I thank the Deputy for the question. The local authorities are not waiting for an announcement because we told them to continue to honour every loan that they approved.
Comment on this
Let him answer the question on when he will release the funding.
Comment on this
Will the Ceann Comhairle let me answer the question please? Only €140 million has been drawn down from the initial tranche of €200 million of funding that was provided under the Rebuilding Ireland home loan. We have contacted every local authority and said that every approval that has been given will be honoured. We have told them not to wait for an announcement from central government because there is still funding in the initial tranche, but a second tranche is needed because this scheme has proven to be so successful. Every local authority is meant to be issuing and approving all loans until the point of drawdown. I cannot tell the Deputy why Louth County Council has decided to make this decision about these applications but it is not because it is waiting for any information from us. We have told it that we will honour every loan that is approved.