My Department continues to work closely with NAMA, the Housing Agency, local authorities and Approved Housing Bodies in relation to the delivery of social housing.
To date, NAMA has identified over 4,653 residential properties controlled by its debtors and receivers under this initiative as being potentially available for social housing. Of this figure, 1,607 units were in areas where the local authority had no demand or where properties were not considered suitable for social housing by the local authority for sustainable communities’ reasons, such as unsuitable tenure mix. A further 1,095 units originally identified as available were subsequently discovered by NAMA to be unavailable as the units had already been sold or leased by their debtor in accordance with their strategy for repaying their debt, or became unavailable when the loans associated with these properties were sold and NAMA no longer held an interest. Of the total properties originally identified, 1,951 properties are available, have a confirmed demand and are considered suitable for social housing.
Of the 1,951 available and confirmed demand properties, 684 have been delivered for Social Housing use at the end of Q1 2014. This figure includes 518 complete and operational units and 166 units where contracts have been signed and final completion works were under way at that point. A further 451 properties are considered as being active transactions whereby terms are agreed or active negotiation is on-going by all parties concerned or where a detailed appraisal (i.e. determining the most likely delivery mechanism) is being carried out. An additional 702 properties are to be further appraised - signalling likely delivery in 2015 and 2016.
While it is noted and accepted that delivery was slow within the early stages of collaboration, it is important to note that the process engaged in was novel to all parties concerned and with this came the added complexity of getting agreement from multiple parties operating within an environment subject to a range of legal and financial constraints. Within this context significant progress has been made in respect of delivery and in particular with the introduction of the National Asset Residential Property Services Limited (NARPSL) special purpose vehicle (SPV) of NAMA. The pace of delivery has increased and the process is now operating well as evidenced by the units delivered to date.
The process of reviewing units previously deemed unsuitable is on-going. NAMA have been requested to identify the units that are still available and Local Authorities, particularly those in high demand areas, are reviewing the list of NAMA properties to see if innovative solutions can be found in order to bring units into use that were previously not considered suitable for sustainable communities reasons. My Department and NAMA are also working together to find ways to retain, contractually or otherwise, the units currently identified as having a confirmed demand to avoid their potential loss through portfolio sale. Along with the on-going review of existing properties by local authorities, a greater focus on building out of incomplete units will be required in order to maximise delivery through this process.
My Department and NAMA have set a delivery target of 500 units in 2014, an ambitious target which we are confident will be met and which will bring overall delivery of units from this initiative to 1 ,100 by year end.