A price tag of nearly €760,000 for four apartments in Rahoon – set to be bought by a housing association – has been branded “too expensive”.
The Carraig Dubh Housing Association – part of Ability West in Blackrock – has already had a loan approved by the Department of the Environment, Community and Local Government to purchase the two-bed apartments at Rockfield Park in Rahoon in an effort to address the housing crisis.
At a meeting of Galway City Council, councillors were asked to approve a request to for a loan to buy the apartments.
But Cllr Michael Crowe (FF) – a former estate agent – said he couldn’t give his approval to their sale on the grounds that the asking price was too high.
He said he appreciated that the Council wasn’t buying them and would not be losing any money at all, as they were being funded by the Department at the end of the day.
“But someone is paying for it – the taxpayer. On the information I have before me, I believe the asking price is too high and I want more information. The price is excessive for where they are.
“ I don’t doubt the bone fides of anyone here and I understand that we are the banking authority only in this case, but we still have to get value for money. I don’t know what system was used to evaluate them, but I won’t be supporting this on the information I have in front of me,” he told the meeting.
Tom Connell, Director of Services for Housing, explained that these properties were being bought on the open market.
Both the Cluid Housing Association and Carraig Dubh had already been approved by the Department to buy the Rahoon units as well as properties at Prospect Hill, Manor Court, Bohermore and in Drisín, Knocknacarra.
Cllr Cathal Ó Conchúir (SF) said that the properties would have undergone a vigorous inspection and would have a good BER rating for them to be approved by the Department for the purpose of being rented as social housing.
Councillors approved four properties for the Capital Assistance Scheme, but deferred a decision on the Rahoon apartments following Cllr Crowe’s proposal (seconded by Cllr Niall McNelis) to do so.
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