The Taoiseach met with representatives of the former residents of Priory Hall this evening to discuss the Resolution Framework which has now been agreed, arising from a process initiated by the Minister for the Environment, Community & Local Government, Phil Hogan TD.
After the meeting, the Taoiseach announced that Dr Martin McAleese has agreed to oversee implementation of the Framework, so as to ensure it is fully implemented and that all of the Priory Hall homeowners are fully involved and fairly treated.
Dr McAleese will chair an oversight board, including representatives of the Priory Hall residents, the Irish Banking Federation, Dublin City Council and relevant Government Departments and agencies.
Their first task will be to prepare and agree a timetable and roadmap for implementing the Framework.
The Taoiseach said:
“I believe that the agreed Framework is a fair solution to this unique and exceptional situation which will give the residents a chance to get on with their lives.
The residents of Priory Hall are victims of one of the worst excesses of the Celtic Tiger era, and this solution recognises the exceptional circumstances they find themselves in.
As part of the Framework, Dublin City Council will ensure that Priory Hall is refurbished into a high quality safe location.
I would like to thank the residents for the constructive manner in which they have engaged with the resolution process established by Minister Hogan three weeks ago.
I believe we now have a good outcome, and I am determined to ensure that it is implemented effectively and quickly.”
ENDS
Note For Editors
Key elements of the agreed framework are as follows:
- ownership of owner occupier homes in Priory Hall will be transferred to Dublin City Council, as well as obligations to repay the loan to the lender under the mortgage; this liability will be limited only to repayment of an amount to the lender equivalent to the realised value secured by DCC on the sale of the apartment following refurbishment, to a maximum of the mortgage outstanding at time of transfer
- the credit rating of the residents of Priory Hall apartments, in respect of the mortgage loans on those properties, will be restored to the position it would have been in prior to evacuation of the complex
- owner occupiers of Priory Hall apartments will have a twelve month period in which to complete purchase of a home
- Dublin City Council will continue to provide rented accommodation to owner occupiers for the twelve month period
- the owner occupiers will be offered a new mortgage for a property by the same bank provided it is affordable relative to their current and expected future income; where necessary, on a case-by-case basis, and subject to affordability, up to 100% mortgages will be provided
- the banks will put a designated senior liaison official in place to deal with Priory Hall owner occupiers and will ensure that decisions on mortgage applications from owners can be referred to appropriate senior level in the their bank if necessary
- the oversight process for implementation of the framework will provide a mechanism to ensure that the process is fair in delivering mortgages for owner occupiers which are affordable while meeting their housing needs
- Dublin City Council will identify solutions, on a case-by-case basis for those with Shared Ownership mortgages
- the banks will make a contribution to the legal fees of owner occupiers in Priory Hall arising from the transactions to deliver these solutions
- those owner occupiers not capable of sustaining a newly originated mortgage sufficient to service their housing need, or who had no mortgage, will be offered a solution by the State drawing on the mortgage-to-rent model which will provide them with suitable homes leased on their behalf; this solution will be identified on a case-by-case basis through the process to implement this Framework
- owners of Buy-to-Let (BTL) properties will be given the option of a moratorium on the mortgage for the duration of the refurbishment of Priory Hall, with repayments to re-commence when refurbishment of Priory Hall has been completed; BTL mortgage accounts will be refunded any interest paid or accrued since evacuation of the Priory Hall
- Dublin City Council will fund and oversee the refurbishment of the Priory Hall complex with support from the Government
- the refurbished complex will, as with the original development, involve a combination of private, social and other forms of housing; the target timeline for completion of works, which will be immediately initiated on foot of this agreement, is two years