Under the Low Cost Sites Scheme, a Local Authority may make housing sites available at low cost to assist persons in housing need to provide their own housing. Applicants must be first time buyers and satisfy an income test. The Local Authority decides the cost of the site. The successful applicants purchase the site at a discounted price and must apply for planning permission.
The building costs may be funded by a mortgage from a bank, building society, or if you are eligible, from a local authority.
Qualifying Criteria
To be eligible for a Low Cost Site you must be:
- A first time buyer and in need of housing and your income satisfies the income test below, or
- A person whose application for local authority housing has been approved by the local authority, or
- A local authority tenant or tenant purchaser who wishes to build a private house and return your present house to the local authority, or
- A member of a co-operative or non-profit housing group of which at least 75% of the members are tenants, tenant purchasers or registered on the Local Authority housing waiting list.
How does the Income Test apply?
Single income household
For a single income household, income must not exceed €40,000 in the previous tax year.
Two income household
For a two-household income, income must not exceed €100,000 in the previous tax year - multiply the gross income (before tax) of the principal (greater) income in the last income tax year by 2.5 and add the gross income of the subsidiary (lesser) earner in the last income tax year. If the result is €100,000 or less, you are eligible.
Low Cost Site Income Test| | Single Income Households | Single Income Households | Two Income Households | Two Income Households |
|---|
| Principle Income | €40,000 | €43,000 | €34,000 | €36,000 |
|---|
| Subsidiary Income | N/A | N/A | €15,000 | €18,000 |
|---|
| Formula | €40,000 x 2.5
= €100,000 | €43,000 x 2.5
= €107,500 | €34,000 x 2.5
+ €15,000
= €100,000 | €36,000 x 2.5
+ €18,000
= €108,000 |
|---|
| Eligible? | Yes | No | Yes | No |
|---|
What is the cost of a site?
The local authority will decide the cost depending on a number of factors, e.g. the location of the site.
How do I fund my building costs?
The cost of building your house may be met through a conventional mortgage from a bank, building society or your local authority.
Other Options which may be of interest
The Low Cost Sites Scheme is specifically intended to be used in conjunction with other housing schemes. The following options are available.
For individuals
- Shared Ownership Scheme
- Affordable Housing Scheme
- Mortgage Allowance Scheme
For voluntary housing bodies
- Voluntary Housing Capital Assistance Scheme
- Voluntary Housing Rental Subsidy Scheme
Can I resell my house?
You may sell your house at any time. However, where a site was originally provided under the Low Cost Sites Scheme by the Local Authority at a discount from market value you must refund to the Local Authority a percentage of the proceeds from the sale of your property. The percentage of the proceeds to be repaid will be equal to the percentage discount originally received from the Local Authority. A full refund must be paid if you sell in the first ten years of occupancy. A reduction of 10% per annum is given for each full year of occupancy between 10 and 20 years. After 20 years of full occupancy no refund would be due to the Local Authority on the resale of the property.
How to Apply
Please print out and complete the Low Cost Site Application Form below and return to Housing Department, Roscommon County Council, Courthouse, Roscommon, or alternatively contact 09066 37237/236 for an application form.
Low Cost Site Application Form.pdf (size 210.4 KB)