Since the announcement in December 2011 that NAMA would commit to providing up to 2,000 units for social housing by the end of 2012, my Department, the Housing Agency and NAMA have been working together with housing authorities and approved housing bodies towards achieving this target.
To date over 2,000 units have been examined with a view to determining their sustainability for social housing having regard to local demand, the nature of the accommodation and sustainable community principles.
Of the original number, 697 have been deemed unsuitable by housing authorities; however in some of these cases, a smaller number of units from the development concerned may be considered for leasing purposes.
A further 344 have been withdrawn, usually by property owners, as circumstances have changed. In some cases the properties concerned have been let on the open market or sold and are no longer available as vacant units.
At present demand has been confirmed for over 1,000 available units and these are currently being processed. Discussion and negotiation has commenced in respect of nearly 700 properties involving approved housing bodies, local authorities, the property owners, financial institutions, receivers and other relevant parties. Inspection of properties, which takes place in all cases, is part of this process.
The units being advanced through NAMA will in general be provided through the Social Housing Leasing Initiative under the standard terms and conditions that apply. It is not possible at this stage to estimate the cost of leasing these properties. Lease costs are determined by negotiation using a standard discounted market price which may vary to reflect the circumstances of a particular case and the terms of the contractual agreement. I can say that the current average annual cost of units leased from the private or voluntary sector under the leasing scheme generally is approximately €7,400.
There are no units operational at this stage and it is not expected that units will be tenanted until the second half of the year. NAMA continues to identify units for inclusion in the programme.
