As of this week, grants of up to €50,000 will become available to owner-occupiers and first-time buyers to refurbish derelict and vacant homes in towns & villages around the country. The government has created the €50 million fund to “support” people to live in towns and villages in Ireland by providing this grant to refurbish vacant properties.
Croí Cónaithe
The new Croí Cónaithe (Towns) Fund will provide grants of up to €30,000 for the refurbishment of vacant properties for occupation as a principal private residence. However, where the refurbishment costs are expected to exceed the standard grant of up to €30,000, a further maximum top-up grant amount of up to €20,000 will be available where the property is confirmed by the applicant to be derelict (i.e., structurally unsound, and dangerous).
Eligibility
There are over 500 towns and villages in Ireland with a population of over 400 people. It is intended that the Croí Cónaithe (Towns) Fund will apply in all such towns, and also to some smaller villages, which may not be defined as villages for the purposes of the CSO Census mapping but with sufficient provision of services and amenities.
So who exactly can qualify for this grant?
While it is aimed at helping first-time buyers in a very difficult market, it also includes those who qualify under the ‘Fresh Start’ principle. The Fresh Start principle includes previous homeowners who have experienced divorce or separation, or insolvency or bankruptcy, and who no longer have a legal interest in the previous property.
Indeed the scheme goes even further to help cover those with special needs or requirements for their home. This includes, disabled people or older people who are moving from their current home, which they are selling or have sold and want to live in a town or village setting;
Those people looking to move from an urban setting to a village or small town can also apply.
Conditions
While many are covered by the scheme, there are conditions that have to be met. These include only availing of the scheme once, you must live in the property as your main residence once completed, tax clearance from Revenue including any LPT charges outstanding and you must agree to the ‘Clawback’ conditions set out in the agreement.
Clawback Conditions
It is expected that the applicant(s) would normally live in the qualifying residential property for a period of at least five years from the date of payment of the subsidy. If at any time they sell the property within ten years, they must reimburse the State an element of the full value of the subsidy, as follows:
- Up to 5 Years (100% of grant repaid)
- Over 5 and Equal to or less than 10 years ( 75% of grant repaid)
- Over 10 Years ( No repayment due)
It is important to remember that in the event of a fall in the value of the property, the full monetary amount, subject to the percentage clawback above, will still be repayable to the local authority.
What is eligible?
In order for a property to qualify, it must have been vacant for two or more years and built before 1993. Utility bills can be used to verify vacancy when requested.
Properties that have not been used for residential purposes in the past, but could be refurbished/converted to do so will also qualify for the grant. In order to qualify for the extra €20,000 top up grant, you will have to obtain an independent report for an engineer or a quantity surveyor. Alternatively, the derelict property must feature on the Derelict Sites Register. This brings the total grant available for a derelict property up to a maximum of €50,000.
What works are covered?
Almost all areas of refurbishment are covered by the scheme and will be subject to a reasonable cost assessment by the local authority. A list of works that are covered is below:
- Substructure works, including works to foundations, rising walls, floor slabs, damp-proofing and underpinning
- Structural works to superstructure, including walls, party walls, chimneys, suspended timber floors, structural timbers
- Works to internal walls, stairs, and landings, and internal wall completions including doors, windows, and applied finishes
- External walls completions including doors, windows, sills, and applied finishes
- Roof completions, including flashings, fascias, soffits, gutters, downpipes
- Building services including plumbing, heating, ventilation, electrical services,telecommunications
- Painting and decoration required because of works carried out
- Extension within the ambit of exempt development under planning regulations, as part of a wider refurbishment
- Necessary external works and site development works carried out within the curtilage of the site
- Professional services associated with works
How to apply?
Local authorities will administer and manage the fund on behalf of the Department of Housing, Local Government, and Heritage. They will also inspect your property once you have completed refurbishment works in line with your application. Submit your application to your local authority and provide supporting documentation. More information can be found at the following link: GOV.ie
