National Asset Management Agency

Dáil Éireann Debate, Tuesday - 3 July 2012

Tuesday, 3 July 2012

Questions (188)

Pearse Doherty

Question:

193 Deputy Pearse Doherty asked the Minister for Finance , following the announcement by the National Asset Management Agency of its intention to demolish a block containing 12 apartments in Longford, if he will provide details of the type of apartments involved and the condition of the property, as well as the condition of the property; when NAMA acquired the underlying loans on the property; the steps taken by NAMA to protect and maintain the property, including the amount of money spent on the property; the sales and marketing activity undertaken by NAMA to dispose of the property; if NAMA considered a sales contract which would oblige the buyer to put the property in a sellable rentable condition; if he will explain the reason the property was not made available for auction; the costs NAMA expects to spend on the property in future, including an accounting for the demolition costs; if he will provide details of NAMA’s efforts to make use of the property for social housing in the context of the waiting list of 335 families in Longford. [31909/12]

Written answers

Minister for Finance (Deputy Michael Noonan)

I am advised by NAMA that it acquired loans secured on this property in December 2010; that the property, comprising two-bedroom duplex units and three-bedroom apartments, was poorly constructed, had been subject to continuous vandalism and anti-social behaviour, including the removal of all fixtures and fittings; and had become a significant source of concern for neighbouring residents. I am further advised by NAMA that the property is located on a flood plain and in the middle of an industrial estate. As a result of its condition and location, NAMA advises that the investment required to bring the property to a habitable state and to the point that it could be sold, in the unlikely event that a willing buyer exists, would be such as to make the investment uneconomical and that it is questionable whether structurally such works could in fact be undertaken. In any event, NAMA advises that Longford County Council, in detailing the Category 4 remediation works to be taken as part of the agreed site resolution plan in respect of this development, set out a requirement that the apartment block be demolished.

NAMA has advised me that to undertake the necessary remediation on this development, including the proposed demolition of this block, it had first to take enforcement proceedings over the property, which was a protracted process involving the reinstatement of an Isle of Man holding company. NAMA further advises that it has expended no monies to date on the apartment block other than monies incurred in the general remediation and upkeep of the overall development in which it is located; and that it has made a provision of €150,000 for all demolition and remediation works relating to the block.

NAMA advises that decisions relating to the provision of social housing are a matter for the relevant housing authorities; that it has identified over 3,000 residential units as being available and potentially suitable for social housing and that the onus is now on housing authorities to determine the suitability of these units for the provision of social housing within their functional areas.