Billy Kelleher (Cork North Central, Fianna Fail)
Link to this: Individually | In context

Question 8: To ask the Minister for the Environment; Community and Local Government the steps being taken by him to maximise the social dividend from the National Asset Management Agency properties and their prospects for tackling the social housing waiting list; and if he will make a statement on the matter. [30376/11]

Phil Hogan (Carlow-Kilkenny, Fine Gael)
Link to this: Individually | In context

On 16 June 2011, I launched the Government's new housing policy statement which will serve as a framework for a sequence of legislative and policy initiatives in the short to medium term. Based on a number of fundamental principles and goals that will form the foundation of a substantial reform programme, the new framework for housing policy responds to current and emerging conditions in the housing sector and takes account of the dramatic cycle of rapid growth and sudden collapse in the residential property market. The centrepiece of the approach is to chart a way forward for housing policy in Ireland by placing greater emphasis on choice, equity across housing tenures and delivering quality outcomes for the resources invested.

There is clear potential, across a range of housing programmes, for the Government's policy objective of sourcing and providing suitable residential units for use as social housing to be aligned with the commercial objectives of the National Asset Management Agency, NAMA. My Department and I have been engaging directly with NAMA to discuss options for bringing unsold suitable residential stock controlled by it into productive use for social housing purposes. The first scheme of this nature, with property held by NAMA being purchased by an approved housing body through loan finance from the Housing Finance Agency, HFA, was launched in July 2011. Other proposals are currently being examined. I again met the chairman and CEO of NAMA to encourage them further to become involved in leasing options as well as the sale of units.

Niall Collins (Limerick, Fianna Fail)
Link to this: Individually | In context

We are all aware that the housing list is growing year on year, with an associated cost for the rent supplement scheme to the Exchequer. The Minister mentioned that he met Mr. Brendan McDonagh, whom I listened to recently when he spoke at a conference. I do not want to misrepresent what he said but he indicated that the State would be offered first refusal on NAMA properties in commercial terms. That is my understanding but is that shared by the Minister? It certainly was not the wider understanding of the people and the view is that NAMA is handling many of these properties, many of which are vacant and close to being finished out at a small cost. Where do we stand with NAMA and will it have to operate on strictly commercial terms with the State with regard to social housing?

Phil Hogan (Carlow-Kilkenny, Fine Gael)
Link to this: Individually | In context

The Deputy knows that from legislation NAMA is required to have a commercial mandate for all activities. Notwithstanding this, I was very pleased with the meeting a week ago with the chairman and CEO of NAMA, when we outlined our requirements with regard to compliance with our business plan. Social housing lists are foremost in our minds in this respect. Many single families could be easily housed in some of the apartments in the major urban areas.

With regard to housing issues, my Department outlined very clearly to NAMA the importance of securing a social dividend from the overall NAMA process. There is also the reorientation of housing policy away from reliance on local authority new builds and acquisition to a more flexible delivery option, including leasing and rental accommodation schemes. There is an increasingly prominent role for approved housing bodies in overall social housing delivery. NAMA has been in touch with the Housing and Sustainable Communities Agency in the past few days to identify properties and see where we can make progress on leasing options.

Dessie Ellis (Dublin North West, Sinn Fein)
Link to this: Individually | In context

I have heard the Minister's comments on his plans for any properties we get from NAMA in this regard but many people expect much from the NAMA properties. Addressing the social housing issue is a priority for me and my constituents. The social end to which the Minister referred goes to voluntary housing rather than social housing, which is one of the problems I have with the Minister's comments. With NAMA we could address many of the homelessness problems and try to reach our target date of 2013 for the elimination of long-term homelessness. Some of these properties could be used in that regard.

There is a way to deal with NAMA and we can enter into five-year contracts on properties, letting the local authorities handle the issue and buy them out over a period. We can get people on the housing lists into properties, which will provide money for the local authorities. We would also eliminate much of the €500 million per year we spend on rental subsidies. There would be much advantage if we used these properties for social housing.

Phil Hogan (Carlow-Kilkenny, Fine Gael)
Link to this: Individually | In context

I agree with Deputy Ellis and hope I did not give the impression that we are exclusively dealing with voluntary bodies. It is just one option for voluntary bodies to engage with NAMA and we engage directly with NAMA, with 8,000 to 10,000 apartment units available in major urban centres. Properly finished - not much money is required for this - they would be available for people on the social housing list. How we can use the money more effectively is a constant issue in the formulation of policy in the Department, as it will ultimately allow people to buy their homes. We will facilitate this. Voluntary housing associations may not be totally happy with the Government decision to allow people buy out their homes that way. I agree with Deputy Ellis and the Government is pursuing the sentiments he expressed.