The Vacant Property Refurbishment Grant, supported by the Department of Housing, Local Government, and Heritage through the Croí Cónaithe (Towns) Fund, offers substantial financial assistance.As part of the Government’s Housing for All plan, the grant provides up to €50,000 for renovating vacant properties and extends to €70,000 for derelict properties. These amounts are inclusive of VAT, and the application process is facilitated by local authorities.
Eligibility Criteria
Eligibility for the grant is open to property owners across Ireland. To qualify, applicants must:
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- Proof of ownership or the intention to purchase the property
- Reside in the property as your principal primary private residence or, where intended to use the property for renting, register it with the Residential Tenancies Board (RTB) and make it available for rent
- When converting a non-residential property into a residential one, hold approved planning permission
- Offer proof that the property has remained vacant for at least two years and was constructed prior to 2008
- Provide tax clearance from Revenue and ensure any applicable Local Property Tax must also have been paid
It is not available to registered companies or developers however, a private individual can be eligible to receive the grant for two properties: a principal private residence and an investment property intended for renting.
The grant covers a wide range of eligible renovation work, with maximum grant amounts for each type of work determined by a cost assessment conducted by your local authority. Funding limits are fixed, but if you reside on an off-shore island, you can receive up to 20% above the standard funding limits, currently up to €84,000 for renovating derelict buildings or up to €60,000 for vacant properties.
For owners of traditional farmhouses, there’s an additional incentive of up to €7,500 through the Conservation Advice Grant Scheme. This grant encourages the preservation of Ireland’s traditional architectural heritage.
Types of work covered by the grant include partial demolition work, substructure works, superstructure works, external and internal completions, and more.
Application Process:
The application process is a structured series of steps. Applicants should initiate the process by submitting a completed application form and supporting documents to their local authority. These documents include proof of property vacancy, evidence of property ownership or intent to purchase, relevant planning permissions, quotes for renovation work, agreements for repayments, and declarations of property standards if renting out.
The local authority will then assess the application, arrange for an expert to inspect the property and estimate renovation costs. If approved, applicants will receive a ‘letter of approval’ indicating the grant amount or a ‘letter of approval in principle’ if the property has not yet been purchased. The renovation work must be completed within 13 months.
During the renovation process, you’ll need to provide contractor and payment information and have the completed work inspected by the local authority. A charge will be signed to secure the grant and ensure compliance with the condition of residing in or renting out the property for a minimum of 5 years.
Consequences of not residing in or renting the property
It’s crucial to note the consequences of not residing in or renting the property. If you decide to sell or rent the property within ten years of receiving the grant, you will be obligated to reimburse the local authority based on the duration for which you have lived in or rented out the property.
Conclusion
The Vacant Property Refurbishment Grant is a valuable initiative that not only supports property owners but also contributes to community development and the alleviation of housing shortages in Ireland. The grant amounts are a significant financial boost, especially considering the escalating costs associated with property renovation.
How we can help
If you have any queries or concerns, or would like to discuss the above in further detail, please feel free to contact Rachel Nangle in our Commercial Real Estate Department (rnangle@bhsm.ie / +353 (0)1 440 8342).
This article is for general information purposes. Legal advice must be obtained for individual circumstances. Whilst every effort has been made to ensure the accuracy of this article, no liability is accepted by the author for any inaccuracies.