Dáil debates

Thursday, 8 March 2012

Priority Questions

Social and Affordable Housing

4:00 pm

Photo of Michael KittMichael Kitt (Galway East, Fianna Fail)
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Question 4: To ask the Minister for the Environment; Community and Local Government his plans in relation to absorbing 2,000 residential units for social housing from the National Assets Management Agency; if additional revenue will be given to local authorities to fund the leases with NAMA properties; the ongoing contact he has with NAMA over use and future use of their properties; if any future plans exist to procure NAMA properties to address the social housing waiting list; and if he will make a statement on the matter. [13412/12]

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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In December 2011 NAMA identified more than 2,000 properties as being potentially available for social housing. While most of these are located in the greater Dublin region and in Cork, properties are identified in a total of 15 local authority areas throughout the country. A steering group was then established to monitor progress, identify and address any obstacles that arise in particular cases and deal with any general policy implementation issues. My Department, NAMA and the housing agency are represented on the group and it will serve as an ongoing point of contact between NAMA and the bodies responsible for the delivery of social housing.

At present, a number of projects have been identified as being suitable for social housing, and these are being advanced for inclusion in the leasing scheme. These projects are at various stages of development, from early discussions with developers on the type and number of units required, to negotiations on price, inspections, contract negotiations, completion works and fittings.

Once a developer or receiver and the housing authority are interested, the basis for a contract will be created which can be negotiated between the parties. This contract can take the form of a lease only or, where an approved housing body is involved, there is the potential to acquire units which are then made available to housing authorities under a payment and availability agreement. A systematic process is being used and I expect that housing units will start to be delivered under this arrangement by the middle of this year.

Funding is available for both housing authorities and approved housing bodies under the social housing leasing initiative to meet the cost of leasing these units. Funding is also available under the capital advance leasing facility to assist approved housing bodies which want to purchase units for social housing purposes from NAMA.

The social housing leasing initiative, facilitated in this case by NAMA, will make an important contribution towards meeting the demand for social housing support.

5:00 pm

Photo of Michael KittMichael Kitt (Galway East, Fianna Fail)
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I thank the Minister for the information. I understand 100,000 people were on social housing list in recent times which is double the figure of four years ago. If, as the Minister states, there is an oversupply of housing, and I saw figures of 80,000 to 100,000, will these houses be leased?

Is the Minister in contact with the National Asset Management Agency with a view to using the agency to tackle the housing waiting list in a creative manner? If so, when will NAMA act on this issue?

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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Arising from the intervention of me and the former Minister of State, Deputy Penrose, with the National Asset Management Agency, we were in a position to secure agreement on the provision by the agency of 2,000 units of accommodation. This is a major boost towards the social dividend we expected from NAMA and will assist those on the housing waiting lists, which are, I regret, growing. The Department is examining initiatives of this nature to ensure families are moved into houses as quickly as possible. We are also engaging with local authorities in respect of the 2,000 units. We also want to ensure the National Asset Management Agency spends the moneys needed to make the properties fit for purpose in order that people can enjoy their new homes without the householder or local authority having to do work on them. Every effort is being made to ensure the units we identified in 2011 through this process will be expedited under the leasing scheme. I believe, however, that home ownership is ultimately the best way for people to have a stake in their home and ensure they have pride in their home. After a period, if the property market improves, I hope we will revisit the matter and be in a position to offer people an opportunity to purchase some of these homes in due course.

Photo of Michael KittMichael Kitt (Galway East, Fianna Fail)
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While I welcome the Minister's response, local authorities will require some funding to address housing waiting lists. Will the Minister examine options for providing additional revenue to fund the leases of National Asset Management Agency properties? What will be the role of voluntary housing agencies and local authorities in this regard?

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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It will not be possible for local authorities to engage in the traditional approach of direct building. The amount available for construction, direct purchase or to assist voluntary housing bodies in acquiring housing has declined from €1.5 billion to €353 million over the past four years. This is a substantial reduction and I do not know where we would obtain capital resources to go down that road again in the years ahead. Leasing and rental accommodation schemes have been to the fore in trying to resolve problems for people by providing private rented accommodation.

There is an opportunity to lease a substantial number of accommodation units from the National Asset Management Agency to assist those who are on the social housing waiting lists. I hope we will have the co-operation and goodwill of the local authority system to expedite the units and make them available to people on the social housing lists as quickly as possible.