Michael McGrath (Cork South Central, Fianna Fail)
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37. To ask the Minister for Finance the reason the National Asset Management Agency has not made greater progress in supplying social housing to date; the way this can be addressed; and if he will make a statement on the matter. [37059/14]

Michael Noonan (Limerick City, Fine Gael)
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The Deputy's premise is incorrect as NAMA has made significant numbers of housing units available through the Housing Agency to local authorities and approved housing bodies.  As the Deputy is aware, NAMA was established firstly to acquire property and related loans from five financial institutions so as to remove this systemic risk to the Irish banking system and secondly, to obtain the best achievable financial return to the State from these acquired loans.  It is not part of NAMA's statutory remit to supply housing. However, consistent with its overall commercial objectives, NAMA is making a very significant contribution in facilitating the delivery of social housing.  It has made 5,455 houses and apartments, one third of the completed housing stock held by its debtors and receivers in Ireland, available to local authorities and approved housing bodies for social housing and has invested over €20m to date in delivering homes for social housing where local authorities have confirmed demand.

The Deputy may not appreciate that NAMA has no role in terms of determining the take-up of properties that it has made available for social housing as this is a matter for local authorities.  Of the 5,455 properties made available by NAMA, local authorities have confirmed demand for just over 2,000.  NAMA expects that it will exceed the target of delivering 1,000 of these homes for social housing by the end of the year with the remainder being delivered over the following 12-18 months. 

Once demand is confirmed by local authorities through the Housing Agency and contracts have been entered into by local authorities or approved housing bodies, NAMA immediately makes the properties available.  This often involves significant investment by NAMA to complete building works and significant work to resolve often complex compliance issues in relation to, amongst other things, planning conditions, regulatory standards and Multi-unit Development requirements.  There are no shortcuts in this process.  NAMA is facilitating the delivery of homes for individuals and families through this very welcome initiative.

The Deputy may also be aware that NAMA has established a special purpose vehicle, National Asset Residential Property Services Ltd. (NARPS), to expedite the delivery of housing.  Through NARPS, NAMA acquires houses and apartments from debtors and receivers and directly leases them to approved housing bodies under long-term leasing arrangements.  In conjunction with the establishment of NARPS, NAMA has introduced standardised leasing terms to further streamline the process.   

NARPS has proven to be an effective method of delivery and NAMA recently announced its intention to provide future Part V housing on NAMA-funded residential developments through this mechanism.  This is a very important initiative, which will mean that NAMA will bear the upfront capital cost of delivering Part V housing on estates that it funds and that such housing will be delivered on site in line with Government policy aimed at ensuring greater integration in housing. 

I am confident that NAMA, within the context of its overriding commercial objective, has done everything it can do to facilitate the delivery of social housing to Local Authorities and approved housing bodies through the existing residential stock securing its loans and it has clearly signalled its commitment to doing likewise through its funding for new residential development.