Concern at €12,000 'rise' in cost of affordable housing

Successful applicants for an affordable housing scheme in the Co Galway village of Tynagh have sought a meeting with the local…

Successful applicants for an affordable housing scheme in the Co Galway village of Tynagh have sought a meeting with the local authority this week over an alleged €12,000 rise in the quoted price.

Minister of State for Housing and Urban Renewal Noel Ahern was confronted by several concerned applicants during the formal opening of the scheme, involving 11 affordable and four social housing units, in Tynagh late last week.

Fine Gael senator Ulick Burke said that a number of the applicants did get a "genuine shock" over the final price of €152,000 for the three-bed homes, which was €12,000 more than the quoted price of €140,000. The scheme was still very good value, and was a credit to the local authority, he said.

Helen Donoghue, a student nurse and one of the applicants, said that the original quoted figure was €120,000 when the foundations were being laid some two years ago. "I am from the area, was delighted to be able to get the opportunity to apply, and the houses really are lovely," she said.

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"However, at the viewing day three weeks ago, we were informed that the price would be €140,000. We accepted this as the figure we would all be working on, though we got nothing in writing. Then late last week, we got a phone call, and a letter, to say that the cost was now €152,000 due to extra charges." Her repayments over 25 years would now be €795 a month on this basis.

A spokesman for Galway County Council said that the houses opened by the Minister of State - in Tynagh, Eyrecourt and Tuam - were sold at cost and this was finalised only last week.

"We always hoped for a cost somewhere between €145,000 and €155,000, but we never know 'till just before we release the houses. We can't sell them at a loss, and the subsidy from the Department of Environment can vary, based on site conditions and housing density," the spokesman said.

Qualifying applicants were dealt with on a "first come, first served" basis, and were not asked to pay the deposit "up front", the spokesman added. The applicants will be asked to pay a deposit next week before receiving keys.

Senator Burke said that Galway County Council had a good record in relation to its commitments under the affordable and social housing scheme, and he was confident that this week's meeting with the Tynagh applicants would find a "satisfactory solution".