Dáil Éireann Debate, Tuesday - 24 July 2018
380. Deputy Richard Boyd Barrett asked the Minister for Finance the details of all its empty properties and land banks that have not yet been sold with regard to NAMA's assets; the negotiations that have taken place to acquire these homes for social and or affordable housing; and if he will make a statement on the matter. [35043/18]
Amharc ar fhreagraI am advised that NAMA’s loans are secured by an estimated 1,729 hectares of residential development land in Ireland which is under the control of its debtors and receivers. Where development of these sites is commercially viable, NAMA is providing funding for the delivery of housing on these sites. I am advised that in excess of 7,800 units have been completed to date and that another 20,900 units are potentially deliverable from sites that are under construction or where planning has been granted, lodged or about to be lodged. Sites with a delivery capacity of another 15,000 units are at the pre-planning or feasibility stages - these sites are either not commercially viable at current sales prices and/or have specific infrastructural requirements such as roads, water or sewerage that will need to be addressed by local authorities and other State bodies before a planning application can be lodged.
All sites are subject to Part V planning requirements whereby 10% of the properties must be provided to local authorities for social and affordable housing. Based on this statutory requirement, it is estimated that up to 780 units have been deliverable from NAMA-funded developments under Part V since 2014. For certain developments, the Part V requirements may have been fulfilled through alternative arrangements at the request of the local authorities concerned.
I am advised that NAMA holds security over an estimated 200 residential units which are currently and temporarily vacant. The majority of these units are at the sale agreed stage, or are on the market for sale, or are between tenancies and are all expected to be in use shortly.
Where NAMA identifies vacant and available residential units in its secured portfolio, it endeavours to facilitate their provision for social housing use. In this regard, since 2014, NAMA has identified 6,984 residential properties as being potentially suitable for social housing and demand has been confirmed by local authorities for 2,717 of these units. NAMA facilitates delivery of units by way of direct sale by its debtor or receiver to local authorities or Approved Housing Bodies, or by way of purchase and lease back through NARPS, its social housing vehicle. Additionally, NAMA provides funding for the remediation of such properties. To date, NAMA has delivered 2,474 houses and apartments for use as social housing and invested in excess of €350 million in remediating, completing and purchasing properties for social housing use.
It is important to note that NAMA’s debtors have the right to maximise the sales value of properties securing their loans so as to enable them to maximise their debt repayments. NAMA cannot require a debtor to take action which would reduce his/her repayment capacity, such as the sale of property at less than its market value.
