Seán Fleming (Laois-Offaly, Fianna Fail)
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33. To ask the Minister for Finance his views on whether the National Asset Management Agency is providing adequate support for the provision of social housing; and if he will make a statement on the matter. [4676/15]

Michael Noonan (Limerick City, Fine Gael)
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NAMA has made significant numbers of housing units available through the Housing Agency to local authorities and approved housing bodies for social housing.  As the Deputy is aware, NAMA was established primarily in order 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, as such, 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 5,753 houses and apartments available to local authorities and approved housing bodies for social housing and has invested over €20m to date in delivering homes for social housing in those cases 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.  Local authorities, through the auspices of the Housing Agency, have confirmed demand for 2,214 of the properties made available by NAMA.  The remaining properties made available by NAMA were ultimately deemed unsuitable by local authorities based on criteria such as their location and on wider planning and housing policy considerations or they were sold or rented by their owners or appointed receivers during the time taken by local authorities to assess and confirm their suitability.

Of the 2,214 properties for which demand has been confirmed, 1,068 have already been delivered for social housing through a combination of purchase and long-term leasing arrangements.  NAMA expects that the other units for which demand has been confirmed will be delivered in 2015 on the basis that local authorities and approved housing bodies contract to purchase or lease the properties.

For the Deputy's information, 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 to carry out other work in order to resolve compliance issues in relation to planning conditions, regulatory standards and multi-unit Development requirements.  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 social housing under this initiative.  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 a very 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.