Local Authority Affordable Purchase Scheme

Click here to read our guide on “Preparing to Apply for Local Authority Affordable Purchase Scheme.”

A list of the documents you will require during the application process is available here.

The Local Authority Affordable Purchase Scheme or L.A.A.P.S. helps people on moderate incomes to buy new homes at reduced prices.

Through this affordable housing scheme, Laois County Council will take a percentage equity share (share of the ownership) in the home.

The scheme is open to First Time Buyers and Fresh Start applicants only.

It is aimed at applicants who cannot afford a new build home at its open market value using their combined deposit and their approved maximum mortgage.

The affordable purchase price will be calculated by Laois County Council based on the “ purchasing power ” of eligible applicants. This calculation considers an eligible applicant’s maximum mortgage capacity and savings, and the minimum price set for the home by the Council.

The below table shows an example of varying applicant incomes and how they determine the affordable purchase price and the Council’s equity share of an affordable home with a market value of €300,000.

Please note the below is an example and not based on any specific scheme being offered by Laois County Council. Purchase prices will differ scheme to scheme.

You can see that the higher an applicant’s income is, the more they will contribute to the price and the less of an equity share the Council will take. The Council will work this out for you as each house price will differ.

To be eligible for an affordable housing scheme, in general you must meet the following criteria:

• • You must not have previously owned a home that you bought or built to live in. Exceptions apply for a Fresh Start Applicant.
  • Each person included in the application must have the right to reside indefinitely in the State.
  • Your income must be below a certain level. This is calculated by multiplying your gross household income by 4. This figure is known as your  “ purchasing power ”  and it must be less than 85.5% of the market value of the affordable home. For example, for an affordable home with a market value of €300,000, the maximum gross household income eligible to apply for the affordable home would be calculated as follows:

• • • Please refer to the Affordable Purchase Dwelling Arrangements Income Assessment Policy for information on assessable income.
    • You cannot have more accumulated savings than the money required to cover the deposit for the home and an additional €30,000. Anything above this is added to your purchasing power. If your purchasing power plus your “extra” savings goes above 95% of the market value of the affordable home, you are not eligible for the scheme.
    • You are in a position to apply for a mortgage (you will be required to maximise your mortgage drawdown capacity).

While it is not a requirement, it is strongly recommended that you have Mortgage Approval in Principle prior to applying to purchase an affordable home, or at least be in a position to apply for a mortgage.

Or

If you are unable to obtain a mortgage, you are in a position to apply for a Local Authority Home Loan.

• • • You have sufficient savings to cover the minimum deposit of 10% of the purchase price of the affordable home.

First Time Buyer applicants can apply for the Help to Buy Scheme which is operated by the Revenue Commissioners to assist them with their deposit.

In addition to the above eligibility criteria, a Scheme of Priority for Affordable Purchase Arrangements applies. It outlines the process applied where the number of eligible applicants exceeds the number of affordable homes available for purchase in the any Local Authority Affordable Purchase Scheme.

For the 30% of dwellings, Laois County Council will prioritise as follows:

Then whether or not an applicant has been living in County Laois for  a minimum period of 1 year, and then first come first served.

In relation to remaining 70% of the homes, priority as to which type of home is deemed to adequately cater to the accommodation needs of a household, will be made on the following basis:

And then first come first served.

There will be an individual application for each affordable housing scheme. There is no rolling application form or waiting list.

When affordable homes are made available for purchase, they will be advertised in the following places:

• • 1. Laois County Council’s website
    2. Laois County Council’s Social Media pages and
    3. In a local/national newspaper

The advertisement will include details about the scheme including how and when to apply. Applications will be accepted through an online application portal only. On the day the application portal opens, you can proceed to complete the online application form and upload the requested documentation.

Please be aware that applications will be prioritised on a first come first served basis.

We strongly recommend that you have mortgage approval in principle in place.

A link to the application portal along with a list of the required documentation will be available on Laois County Council’s website when an affordable housing scheme becomes available and is open for applications.

Your application will be assessed, and it will be determined whether you qualify to purchase an affordable home or not.

When all applications have been assessed and eligibility has been determined, Laois County Council will contact all applicants to advise whether they have been successful and whether they will be receiving an offer or not, depending on the number of properties available.

As part of the Affordable Dwelling Purchase Arrangement, Laois County Council will retain an “Equity Share” in your affordable home.

The Equity Share, represented as a percentage value of the home, is the difference between the purchase price and the open market value.

For example, if you purchase an affordable home and the price you pay for the home is 15% less than the open market value of the affordable home, Laois County Council will take a 15% equity share in your home.

If you choose not to redeem the equity share while living in the home, Laois County Council may do so when the property is sold, transferred, after your death, or after a 40 year period.

Any queries on affordable housing can be sent to affordablepurchase@laoiscoco.ie

Scheme of Priorities for Local Authority Affordable Purchase Scheme

Affordable-Purchase-Dwelling-Arrangements-Income-Assessment-Policy-LCC

Laois County County Council Exception to Income Limit

Glossary-of-Terms

Fresh-Start-Principle

Affordable Purchase Scheme Privacy Statement