Dara Calleary (Mayo, Fianna Fail)
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67. To ask the Minister for Finance the amount of funding provided under the capital plan for the NAMA 4,500 new residential units in the Dublin area; the amount spent to date; the number of homes completed; the number of homes to be provided from 2017 onwards; the cost of these; and if he will make a statement on the matter. [18786/17]

Michael Noonan (Limerick City, Fine Gael)
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NAMA's commercial funding activities with respect to housing delivery are referenced in the Infrastructure and Capital Investment Plan (2016-2021) under "Non Exchequer Investment".  In other words, such funding has not been provided under the Capital Plan nor through direct Exchequer expenditure. Rather, it is provided by NAMA in line with its commercial mandate under Section 10 of the NAMA Act. NAMA's commercial activities, including asset management plans to facilitate housing on sites securing its loans, are decisions for the independent NAMA Board and are funded entirely from NAMA's own resources.

As outlined in the Infrastructure and Capital Investment Plan (2016-2021), NAMA planned to fund the delivery of 4,500 new homes in the three years to end-2016. This target was exceeded and some 4,700 units have been delivered by end-2016 by NAMA debtors and receivers and funded by NAMA.

In October 2015 NAMA committed to facilitate and to fund the delivery of up to 20,000 units, assuming commercial viability, on sites securing its loans in the period October 2015 to end-2020. In this regard, NAMA is funding and construction has begun, or will begin this year, on sites which will ultimately deliver another 2,148 units. An additional 7,300 units have received planning permission and planning applications have been lodged, or are anticipated to be lodged within the year, for another 10,000 units.

I am advised that NAMA originally allowed for €5.6 billion in funding, with peak funding of up to €1.8 billion, for its residential funding programme if required. However, NAMA do not anticipate reaching such funding levels given the proceeds from the sale of completed projects are being recycled to fund new commercially viable residential projects.

It is also very important to understand that NAMA is not itself a developer.  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.  Furthermore, NAMA only extends funding to willing NAMA debtors and receivers on commercial arms-length terms where there is an expectation that such funding will enhance NAMA's recovery on the loan. NAMA requires that the projected return resulting from the provision of additional funding must be the value maximising strategy for the asset and this is fully in accordance with Section 10 of the NAMA Act.  This means NAMA will facilitate the funding of development of only those sites that are commercially viable and where site development will deliver a better recovery than the sale of the undeveloped site. Where NAMA provides funding to facilitate development by its debtors or receivers, it is provided at appropriate market rates of interest on the expectation that it will be repaid in full.

For additional information on NAMA's residential delivery I would refer the Deputy to NAMA's 2016 Year End Review, available via the NAMA website: www.nama.ie/fileadmin/user_upload/NAMA_-_End_of_year_Review_2016.pdf.  NAMA will also publish its 2016 Annual Report and Accounts in June, which will provide further details on its activity to date and future plans.