Dáil Éireann Debate, Tuesday - 2 November 2021
244. Deputy Neasa Hourigan asked the Minister for Finance his plans to amend the National Asset Management Agency Act 2009 to allow NAMA to build affordable housing on its land holdings instead of the need to maximise commercial returns; and if he will make a statement on the matter. [52055/21]
Amharc ar fhreagra245. Deputy Neasa Hourigan asked the Minister for Finance his plans to amend the National Asset Management Agency Act 2009 to restrict the sale of existing and new build property at an affordable price to individual home buyers and social housing providers; and if he will make a statement on the matter. [52056/21]
Amharc ar fhreagraI propose to take Questions Nos. 244 and 245 together.
As the Deputy will be aware, NAMA does not generally own properties, rather NAMA acquired loans for which the properties act as security. Secured properties remain in the ownership and control of their registered owners, or appointed receivers in the event of enforcement.
NAMA cannot restrict the sales of properties to specific purchasers below market value, as suggested by the Deputy, as this may have the effect of breaching its statutory commercial obligations under section 10 of the NAMA Act. In addition, 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. Therefore, NAMA cannot require a debtor to take action which would reduce his/her repayment capacity, such as selling a property for less than market value. Notwithstanding this, I am advised that the majority of NAMA-funded newly built residential units are sold to individual purchasers, many of them first-time-buyers.
Within the context of its overriding commercial mandate, I can advise the Deputy that NAMA has already made a significant contribution to social housing, including establishing a special vehicle (NARPS) to expedite delivery, which has leased 1,370 units to Local Authorities and Approved Housing Bodies. To date, NAMA has delivered over 2,640 homes for social housing. These figures exclude social housing delivered on NAMA-funded residential developments in compliance with Part V planning obligations.
NAMA was established as an independent commercial body with a very specific legal and commercial mandate, which was approved by the European Commission in 2010. It is important that NAMA’s role is preserved and that it completes its work in line with its original mandate; to achieve the best possible return to the State by protecting, enhancing where possible, and ultimately realising the value of assets it has acquired. NAMA has made considerable progress toward the achievement of its objectives and a key part of NAMA's remaining mandate will be to continue to make a significant contribution to the supply of housing within the State where it is in a position to do so. Accordingly, at this late stage in NAMA’s lifecycle, it is not my intention to amend its legislation.
