I propose to take Questions Nos. 203 to 205, inclusive, together.
The National Asset Management Agency (NAMA) continues to play an important role in the delivery of social housing. To the end of September 2015, a total of 1,600 NAMA residential properties had been delivered for social housing use, comprising 1,241 completed properties and a further 359 that have been contracted and where completion work is on-going. A further 486 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 is being carried out. An additional 440 properties are to be further appraised. Overall, I expect that in excess of 2,000 units will be secured for social housing purposes from this engagement with NAMA.
In addition, NAMA is funding the construction of new residential properties to help meet demand in the major urban centres. The overall programme will be funded from NAMA’s own resources and will lead to the development of an estimated 20,000 units by 2020, mainly in the Greater Dublin area where the current residential supply shortage is most acute. Residential developments funded by NAMA are subject to the same planning and regulatory requirements as all other developments and this includes policy relating to Part V of the Planning and Development Act 2000. As such, I expect 10% of the output of this investment by NAMA, or about 2,000 units, to become available for social housing.
NAMA sourced units are brought into social housing use through existing delivery mechanisms including the Social Housing Investment Programme, the Capital Acquisition Scheme and the Social Housing Current Expenditure Programme (SHCEP). The mechanism utilised is, and will continue to be considered, taking issues such as value for money, the availability of Capital Funding and project specific details into account.
NAMA’s Special Purpose Vehicle - the ‘National Asset Residential Property Services’ (NARPS) – was established in 2013 to facilitate the sale or lease of NAMA debtor or receiver residential properties for social housing purposes. In line with a commitment in the Social Housing Strategy, its remit has been expanded to allow it to fund the purchase of Part V units which become available through NAMA’s residential delivery programme. In this way, NAMA will continue to facilitate the provision of high quality units for social housing purposes in mixed tenure, sustainable communities and thus complement the extensive social housing construction programmes of local authorities also currently underway.
At the end of September 2015, 858 or 48% of the social housing units delivered by NAMA were by way of long term leasing funded by the SHCEP. I expect by year end, this will be well in excess of 50%. The current average monthly cost of operational NAMA units leased by Approved Housing Bodies or local authorities, and funded by SHCEP, is €770 per unit per month. Monthly leasing arrangements under the SHCEP achieve significant discounts on market rents and are subject to regular rent reviews. In the case of NAMA related properties, average discounts achieved are in the region of 17% for houses and 12% for apartments. In addition, under these arrangements, rents are fixed for the first six years.
In the case of properties purchased, my Department does not distinguish the financing of NAMA sourced units from other sources of social housing supply. In every case, prices paid are determined by the independently determined market value.
Information on NAMA social housing programme is available on the website of the Housing Agency at www.housing.ie/NAMA.
