Ruth Coppinger (Dublin West, Solidarity)
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121. To ask the Minister for Finance his plans for national asset residential property services, NARPS, units leased under the social housing current expenditure programme, SHCEP, after NAMA ceases; his plans for private investors; and if he will make a statement on the matter. [17036/17]

Michael Noonan (Limerick City, Fine Gael)
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The Deputy will be aware that NAMA has made a significant contribution, on a commercial basis to the delivery of social housing, through working closely with the Department of Housing, Planning, Community & Local Government and the Housing Agency.

To end 2016, NAMA offered 6,941 vacant houses and apartments owned by debtors and receivers to the Housing Agency, who liaised with the local authorities to determine demand for these properties. Of these, local authorities confirmed demand for 2,748 of these properties.  Of these, 2,378 properties have been delivered or contracted for delivery to local authorities and approved housing bodies for use as social housing.  It is important to note that NAMA has no role in identifying the suitability of these properties for social housing and has no involvement in the selection of occupants for these properties.

To facilitate the delivery of these residential properties, NAMA established a special purpose vehicle, National Asset Residential Property Services ("NARPS").  The establishment of NARPS has streamlined social housing delivery to local authorities and approved housing bodies both by significantly reducing the up-front capital costs for local authorities in the delivery of these properties for use as social housing and by providing NAMA, the owner of NARPS, with an attractive commercial income stream.

NARPS purchases properties directly from NAMA debtors and receivers, at market value.  NARPS then onward leases these properties to local authorities and approved housing bodies on long term (20 year 9 months) leases, which include an option for the local authorities or approved housing bodies to purchase the unit at market value towards the end of the lease term.

Of the 2,378 houses and apartments delivered for social housing to end of last year, 1,019 of these were delivered through NARPS and a further 337 properties are contracted for acquisition by NARPS.  In 2016, 85% of all units delivered for social housing by NAMA were delivery through NARPS.  The NARPs portfolio comprises properties primarily located in Dublin (43%) and Cork (23%) and comprises 61% apartments and 39% houses. 

As I discussed in my response to parliamentary questions 72 and 73 on 10 December 2015, NAMA has a number of potential options regarding its strategy for NARPS in the context of its overarching mandate.  Decisions relating to this strategy are a matter for the NAMA Board and I am advised that such matters are actively considered in the context of NAMA's ongoing activities. To my knowledge - and I am assured I and my officials will remain informed - while such issues are actively considered, there are no immediate plans to dispose of NARPS.  Furthermore, while under active and ongoing consideration, there are no definitive plans regarding assets which may remain in NAMA when NAMA ceases, not least because the definitive composition of such assets cannot yet be known with certainty.

NARPS is a subsidiary of NAMA and I assume that NAMA will have the opportunity to dispose of its interest in NARPS as part of its ongoing deleveraging.  However, it is important to note that regardless of the disposal option that is ultimately determined by the NAMA board, it is envisaged that the existing contractual agreements and long term leases between NARPS and the local authorities and approved housing bodies will remain in place and the rights of each party under those contracts will not be adversely affected.