A review of the defective blocks scheme taking place after 29th June has been described as a ‘critical’ point for homeowners.
Deputy Joe McHugh last night urged the Department of Housing to implement a 10% increase to the maximum grant cap.
The cap, which is currently at €420,000, leaves the average homeowner €100,000 short, Donegal Deputy Joe McHugh told the Dáil last night.
“This scheme is creating substantial shortfalls for over 50% of applicants. It is not a 100% scheme and should not be labelled as a 100% scheme,” Deputy McHugh told Minister of State Malcolm Noonan.
Acknowledging that a shortfall will still remain for half of the applicants, Deputy McHugh said there must be light at the end of the tunnel.
“There has been trauma for ten years,” he said. “There is anguish. Families are struggling. People want to see light at the end of the tunnel.”
Deputy McHugh added a call for two actions: the transfer of eligibility for pensioners who cannot hand their houses down to their children; and penalty-free downsizing.
“These two policies would not cost the state 1 cent,” he said. “I was not listened to, but I still have them on my agenda and I am looking for them to be addressed even at the eleventh hour of this Government.”
Minister of State Malcolm Noonan said the date of 29 June that triggers the review under section 11 of the Act is an important timeline.
In March, the Society of Chartered Surveyors Ireland provided updated cost reports on the demolition and reconstruction of defective homes to the Department of Housing
Once the expert group reviews the cost data, it will provide advice to the Minister for his consideration as to whether both the grant rates and scheme cap should be increased, and if so by what amount.
“That date in June is critical. I think that reconvening the group will be a positive step forward for people affected,” said Minister of State Malcolm Noonan, adding: “This is a good scheme. The Government and the Department want to ensure that it works for families and that the injustice they have suffered for too long is addressed in a meaningful way by the Government. We give our commitment to that.”
