Fees not for councillors

THE setting of fees charged to applicants for the tenant purchase incremental scheme and for a housing purchase loan is a matter for the executive and not councillors, members of Louth County Council were told at their monthly meeting.

Cllr Marianne Butler had tabled a motion that the council would no longer charge the €25 fee for those applying for the tenant purchase incremental scheme and the €50 fee for a housing purchase loan from January next.

She pointed out that they were in the middle of a housing crisis and believed that there ‘would be war’ if the banks charged people €50 to apply for a loan.

People applying for the loan from the council already had to be refused by two banks and get all their documents together before going to the local authority, she noted.

‘ These are people on low incomes and it’s all about giving them confidence to apply for this loan,’ she argued. ‘It’s an opportunity for us to say we are open for business. By abolishing these fees we are not going to overheat the housing market. It’s the right thing to do.’

Cllr Maria Doyle wanted to know how many applicants there were for each scheme per annum and suggested that they simply charge successful applicants.

Director of Service Mr Joe McGuinness said that the matter of fees was an executive function. He pointed out that the council has to deal with people making frivolous applications and the fees act as a deterrent.

They had been 13 applications for incremental purchases so far this year and around 60 to 70 applications for housing loans per year.

‘I’m absolutely shocked,’ replied Cllr Doyle. She said she couldn’t understand how they could strike a rate or set parking charges and yet it was not within their power to decide on this. And she couldn’t fathom anyone making a frivolous application in terms of a housing loan. She also felt it was the unsuccessful applicants who would most need the money back,

Chairperson Cllr Paul Bell suggested that the issue go to the Housing Strategic Policy Group for further discussion,

He agreed that the fee was needed as a way of discouraging frivolous applications,

Cllr Butler felt that the amount involved in abolishing the fees would be tiny in the context of the council’s overall budget, especially in a time of housing crisis.