S.I. No. 148/1996:

HOUSING REGULATIONS, 1980 (AMENDMENT) REGULATIONS, 1996

HOUSING REGULATIONS, 1980 (AMENDMENT) REGULATIONS, 1996

In exercise of the powers conferred on the Minister for the Environment 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 11 of the Housing (Miscellaneous Provisions) Act, 1992 , which powers are delegated to me by the Environment (Delegation of Ministerial Functions) Order, 1995 ( S.I. No. 3 of 1995 ), I, Liz McManus, Minister of State at the Department of the Environment, hereby make the following Regulations:--

1. These Regulations may be cited as the Housing Regulations, 1980 (Amendment) Regulations, 1996.

2. In these Regulations--

"the Regulations of 1980" means the Housing Regulations, 1980 ( S.I. No. 296 of 1980 );

"the Regulations of 1982" means the Housing Regulations, 1980 (Amendment) Regulations, 1982 ( S.I. No. 177 of 1982 );

"the Regulations of 1985" means the Housing Regulations, 1980 (Amendment) Regulations, 1985 ( S.I. No. 223 of 1985 );

"the Regulations of 1986" means the Housing Regulations, 1980 (Amendment) Regulations, 1986 ( S.I. No. 386 of 1986 );

"the Regulations of 1992" means the Housing Regulations, 1980 (Amendment) Regulations, 1992 ( S.I. No. 30 of 1992 ).

3. Article 31 of the Regulations of 1980 (as substituted by the Regulations of 1982 and amended by the Regulations of 1992) is hereby amended by the substitution for the Table to that article of the following Table:

"

TABLE

"

4. Article 31A of the Regulations of 1980 (as inserted by the Regulations of 1982 and amended by the Regulations of 1985) is hereby amended by the substitution for sub-article (2) of the following sub-article:

"(2) Sub-article (1) shall not apply in the case of a person:

(a) whose--

(i) existing accommodation is unfit for human habitation, is overcrowded or is otherwise materially unsuitable having regard to the housing needs or health requirements of the occupants, or

(ii) marriage has been dissolved or annulled by order of a court of competent jurisdiction, or who is separated from his or her spouse under an order of such court or by a deed of separation,

and who satisfies the housing authority making the loan that he or she is in need of housing and that failure to make the loan would cause undue hardship, or

(b) who is in occupation of a house which was provided or which is or was owned by a housing authority and that person satisfies the housing authority making the loan that, on the making of the loan, he or she will, without compensation, provide them or another housing authority with vacant possession of the house by surrendering the tenancy or by conveying the house to the authority."

5. The Regulations of 1980 are hereby amended by the insertion of the following article after article 32:

"32A (1) In the case of a loan--

(a) for the construction of a house the foundations of which were completed on or after the 1st day of May, 1995, or

(b) for the acquisition of a house the contract for the acquisition of which was made on or after the 1st day of May, 1995,

a loan shall not be made unless the application of the income eligibility formula by the housing authority results in an amount not in excess of £35,000.

(2) Sub-article (1) shall not apply in the case of a loan to a person who-

(a) is in occupation of a house which was provided or which is or was owned by a housing authority and that person satisfies the housing authority making the loan that, on the making of the loan, he or she will, without compensation, provide them or another housing authority with vacant possession of the house by surrendering the tenancy or by conveying the house to the authority,

(b) has been included in the most recent assessment made by a housing authority under section 9 of the Housing Act, 1988 (No. 28 of 1988) or has been accepted by a housing authority, after the making of such assessment, for inclusion in the next such assessment, or

(c) is a tenant, for a period of not less than one year, of a house provided by a body approved of under section 6 of the Housing (Miscellaneous Provisions) Act, 1992 and in respect of which a subsidy towards the rent is paid by a housing authority under section 7 of the said Act and who satisfies the authority making the loan, that, on the making of the loan, he or she will, without compensation, provide the approved body with vacant possession of the house by surrendering the tenancy to the body.

(3) Article 32 of the Regulations of 1980 (as substituted by the Regulations of 1982 and amended by the Regulations of 1986) and article 4 of the Regulations of 1992 shall not apply to a loan to which sub-article (1) refers.

(4) In this article "income eligibility formula" means the formula--

where in the income tax year immediately preceding the date of the application for the loan--

"A" is the larger of the incomes of the borrower and, if any, that of the borrower's spouse or any person cohabiting as husband or wife, as the case may be, with the borrower or any joint borrower or borrowers; and

"B" is the income, if any, of such spouse, person cohabiting or joint borrower or borrowers, as the case may be.".

6. Article 51 of the Regulations of 1980 (as substituted by the Regulations of 1985 and amended by the Regulations of 1992) is hereby amended by the substitution for the Table to that article of the following Table:

"

TABLE

".

7. Article 52 of the Regulations of 1980 (as substituted by the Regulations of 1986 and amended by the Regulations of 1992) is hereby amended by the substitution for the Table to that article of the following Table:

"

TABLE

".

8. The Regulations of 1980 are hereby amended by the insertion of the following article after article 53:

"53A (1) In the case of a loan for the carrying out of improvement works to a house where the works were commenced on or after the 1st day of May, 1995, a loan shall not be made unless the application of the income eligibility formula by the housing authority results in an amount not in excess of £35,000.

(2) Article 53 of the Regulations of 1980 (as substituted by the Regulations of 1982 and amended by the Regulations of 1986) and article 4 of the Regulations of 1992 shall not apply to a loan to which sub-article (1) refers.

(3) In this article "income eligibility formula" means the formula--

where in the income tax year immediately preceding the date of the application for the loan --

"A" is the larger of the incomes of the borrower and, if any, that of the borrower's spouse or any person cohabiting as husband or wife, as the case may be, with the borrower or any joint borrower or borrowers; and

"B" is the income, if any, of such spouse, person cohabiting or joint borrower or borrowers, as the case may be.".

9. Articles 31 and 32 of the Regulations of 1980 (as substituted by the Regulations of 1982 and as amended, respectively, by these Regulations and the Regulations of 1986), article 32A of the Regulations of 1980 (as inserted by these Regulations) and article 4 of the Regulations of 1992 shall not apply in the case of a loan made:

( a ) to a tenant in respect of a dwelling sold by a housing authority under section 90 of the Housing Act, 1966 (as substituted by section 26 of the Housing (Miscellaneous Provisions) Act, 1992 ), or

( b ) to a person in respect of the purchase of all or any part of the outstanding interest of a housing authority in a dwelling in respect of which the authority has granted a shared ownership lease.

10. (1) Subject to this article, where, at any time before a loan made under either Part VI and VII of the Regulations of 1980 (as amended) has been repaid, the financial and household circumstances of the borrower are such that, in the opinion of the housing authority, the borrower is unable to comply with a condition subject to which the loan was made requiring repayment of the loan within a specified period, the authority may, subject to such conditions as they see fit, enter into and carry out an agreement or agreements with the borrower to--

( a ) extend such period, and

( b ) adjust the capital debt outstanding on the loan by converting interest or other expenses due in respect of the loan into capital debt, such debt to be repaid together with any balance outstanding on the existing loan as a loan made under the said Part VI or VII, as the case may be.

(2) Where an agreement is entered into under sub-article (1), the terms and conditions of the agreement shall be deemed to be terms and conditions subject to which the loan was made.

(3) The period within which a borrower is required to repay a loan shall not be extended by a period greater than the least period that, in the opinion of the housing authority, is necessary to enable the borrower to repay the loan.

11. Article 55 of the Regulations of 1980 is hereby amended by the addition of the following sub-article after sub-article (2) --

"(3) Where--

( a ) a loan under this Part is made by a housing authority, and

( b ) the borrower is repaying to the authority a loan made under Part VI and the period for repayment of that loan expires at a time which is later than 15 years from the making of the loan referred to in sub-paragraph (a) or the payment of the final instalment thereof,

the housing authority may, notwithstanding sub-article (1), extend the period within which the loan under this Part is to be repaid to such date, as they may determine, not later than the date of expiry of the period by which the loan under Part VI is to be repaid.".

12. Part I of the Second Schedule to the Regulations of 1980 (as amended) is hereby amended by the insertion of:

"County Limerick Foynes"

after "The Great Blasket" and before "County Mayo".

Dated this 28th day of May, 1996.

LIZ MC MANUS

_________________________________________

Minister of State at the Department of the Environment.

The Minister for Finance hereby consents to the foregoing Regulations.

GIVEN under the Official Seal of the Minister for Finance this 28th

day of May, 1996.

RUAIRI QUINN

________________

Minister for Finance.

EXPLANATORY NOTE

These Regulations relate to house purchase and improvement loans made by local authorities and make a number of further amendments to the Housing Regulations, 1980 to provide with effect from 1 May, 1995 for:

• increases in the amounts of local authority house purchase and improvement loans;

• the assessment of income for the purposes of eligibility by a formula which takes into account second incomes;

• certain exemptions from the income eligibility limit.

The Regulations also provide:

• that house purchase loans may be made to certain persons who had previously owned a house, e.g. following marital breakdown;

• for the extension of loan repayment periods and the conversion of arrears into capital debt in cases of hardship;

• a facility for the consolidation of house purchase and improvement loans into a single loan.