Jan O'Sullivan (Limerick City, Labour)

The housing agency is working with NAMA to determine the social housing demand for individual properties identified by NAMA. In that context, the agency is contacting the relevant local authorities to consider existing demand in terms of numbers, types and locations of properties required to meet social housing needs in the relevant authorities. The agency will provide a co-ordinated response to NAMA with a view to securing as many of the properties as are suitable as quickly as possible.

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 in that scheme. A local authority will have the option of leasing the properties directly from the relevant borrower or receiver. Alternatively, an approved housing body may secure the properties through direct leasing or, in some cases, by purchasing using private or HFA finance and leasing them back to the State.

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. The current average annual cost of units leased from the private or voluntary sector under the leasing scheme generally is approximately €7,400.

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