Dessie Ellis (Dublin North West, Sinn Fein)
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282. To ask the Minister for Finance his plans for the delivery of 20,000 units for commercial sale by NAMA; and if any of these units will be made available for social housing or designated for affordable rent. [37633/15]

Michael Noonan (Limerick City, Fine Gael)
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There are currently clear distortions in the housing market as it attempts to find an equilibrium between supply and demand following the large value swings of the crisis and as to now a lagging supply response is being dampened by expectations of continued future price increases. In this regard, I announced as part of Budget 2016, plans for NAMA to fund the delivery of 20,000 residential units by 2020 on a commercial basis.

The flexibility afforded by Section 11(2) of the NAMA Act allows NAMA to take account of distortions in the market for development land in achievement of its objectives. However, it is important to point out to the Deputy that this plan is a wholly commercial initiative which will go some way to addressing the current supply shortage, particularly in Dublin.  The initiative is fully in line with the Agency's primary objective to achieve maximum recovery on its assets and to maximise the return to Irish taxpayers through its funding for individual development projects.

I am advised that the NAMA Board has carried out a preliminary, high-level analysis of development sites controlled by its debtors and receivers with a view to identifying the scope for residential delivery over the five-year period to the end of 2020. Based on this preliminary analysis, NAMA advise that sites capable of delivering 14,000 units are commercially viable to develop based on current sales prices, current planning and current completion costs. I am further advised that sites capable of delivering at least another 6,000 units are commercially marginal to develop at current sales prices but may become commercially viable through intensive asset management and planning work by NAMA. The provision of requisite infrastructure by the local authorities, Irish Water and Transport Infrastructure Ireland will also contribute to the commercial viability of some sites. NAMA is currently carrying out a detailed, site-by-site, bottom-up review of the residential sites controlled by its debtors and receivers with a view to refining the potential delivery programme. 

The delivery of this plan is estimated to require total funding from NAMA of €4.5 billion with a peak funding requirement of €2.5 billion.  This funding is expected to be fully recovered and is expected to enhance the overall recovery on NAMA's loans.  This funding will be drawn entirely from NAMA's own resources.

It is also very important to understand that NAMA is not building houses itself.  NAMA is not becoming a developer or a builder. Rather, NAMA is ensuring the delivery of these units through continued work with its existing debtors to agree development plans, secure/alter planning permission and funding the delivery of these residential units on a commercial basis.  All NAMA funding is on a commercial basis.

NAMA have produced a useful infographic which provides an overview of the key details of the proposal. This can be found on the NAMA website via the following link:

As regards social housing, NAMA funded developments are subject to the same planning and regulatory requirements as all other developments and this includes policy relating to social housing delivery as set out in Local Authority Housing Strategies in line with Part V of the Planning and Development Act (as amended). Therefore residential developments funded by NAMA will include Social Housing where required under said Part V.