Ruth Coppinger (Dublin West, Socialist Party)
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298. To ask the Minister for Finance if his plans to re-purpose the National Asset Management Agency as a social and affordable housing agency will include any provision for social housing over and above the 10% of developments of over nine units mandated under the Urban Regeneration and Housing Bill and the 2,000 units previously announced by the agency; and if he will make a statement on the matter. [33421/15]

Michael Noonan (Limerick City, Fine Gael)
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I have no intention to repurpose NAMA or its objectives, as the Deputy is suggesting. NAMA has a well-established overriding commercial mandate to recoup the best return for the Irish taxpayer and this has not changed. However, that does not mean that NAMA does not carry out objectives, such as facilitating the delivery of residential and social housing, which are entirely consistent with its existing purpose and objectives.

At the outset, it is important to note that NAMA does not build houses itself, rather it works with its existing debtors to agree development plans, secure/alter planning permission and fund the debtor's delivery of units.  Through these efforts NAMA are helping to increase the value of the security supporting the loans of its debtors and so improving NAMA's ultimate recovery on these loans.

In this regard, NAMA continues to work closely with the Minister for the Environment, Community and Local Government and the Minister of State for Housing and Planning in relation to the delivery of residential housing, including social housing, and all parties are committed to the maximum possible delivery of residential units. 

As at mid-September 2015, I am advised that NAMA had identified over 6,500 residential properties as potentially suitable for social housing.  I am further advised that demand has been confirmed by local authorities for over 2,500 properties, of which 1,518 have been delivered for social housing use. NAMA also expects the end 2015 target of 2,000 social housing units will be achieved.

The 6,500 residential properties made available by NAMA for social housing represents the totality of vacant residential properties within NAMA's portfolio that were potentially suitable for social housing.  The 4,000 residential properties not taken up for social housing have been either sold or rented in the private housing market and in that way have contributed to increased market supply. 

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. 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.

All applicants for residential development, irrespective of who the funder is, must comply with the relevant planning and housing policy, including Part V policy relating to the provision of social housing which the Deputy referenced. As Minister for Finance, I do not have role in relation to the application of the Part V policy in respect of any individual development.

NAMA has indicated that Part V units within new residential developments funded by it could be delivered through its social housing SPV, NARPS.  This would mean that the upfront capital cost of constructing such units would be borne by NAMA.  This may reduce the funding burden otherwise placed on financially constrained local authorities.  These units then could be leased under long term leasing arrangements for social housing.

Furthermore, NAMA is also playing a key role in providing support to the wider residential market by boosting supply. With exposure to less than one-third of Dublin's residential development land, NAMA funding delivered 40% of the 3,259 new housing units in Dublin in 2014 and in the first half of 2015 funded the delivery of 50% of new output in Dublin.

As a member of the Dublin Housing Task Force, NAMA has identified all the Tier 1 lands (i.e. sites with potential to deliver more than 20 units) on its books with residential planning already in place.  These, along with all other non-NAMA Tier 1 sites in the Dublin area, have been published via an interactive map on the Department of Environment, Community, and Local Government website. This action has brought greater transparency to the Dublin market by publically providing detailed information on sites with development potential.

In April 2014, as part of its contribution to address emerging residential supply shortages in the Greater Dublin area, NAMA established a dedicated Residential Delivery team to coordinate and drive the delivery of this commitment and assess the potential for delivery of additional units thereafter.

I am further advised that NAMA also has security over 156 or 17% of the 992 unfinished housing estates in the country down from 268 of 1,258 at end 2013. This substantial reduction in the number of unfinished housing estates within the NAMA portfolio reflects the impact of funding to debtors and receivers to undertake remedial works in line with Site Resolution Plans agreed with local authorities. NAMA also inform me that the Agency has advanced funding in excess of €5m for site resolution works on unfinished housing estates in which it has an interest as a secured lender.

With all of the above in mind, it is clear that NAMA is making a significant contribution to social and residential housing and a re-purposing of the Agency is not required in order for this to continue.