16 July 2015
NAMA made 6,391 units available for social housing but only 1,198 ( less than 20%) have been taken up by local authorities in a four year period.
€25m of public money has so far been been spent by NAMA to bring substandard residential units up to Local Authority standards.
In the Dáil on 30th June 2015, Gabrielle McFadden T.D. (Fine Gael) queried the number of units identified by NAMA for social housing, and the take-up by Local Authorities for the period 2012 to date. NAMA took over control of these housing units from failed housing developers in the crash. She also asked if enough efforts were being made to accelerate this and address the current housing crisis.
For full exchange click here: Dáil 30th June 2015 30th June 2015
The Minister for Finance, Michael Noonan, in his reply noted that there were only 1,200 units for this four year period (2012 to Q1 2015), and that significant works were required to bring speculatively built units up to social housing standards. The number quoted by the minister represents less than 20% of the NAMA units identified as available:
“in the vast majority of cases, the properties for which demand has been confirmed require substantial completion or remediation work and the resolution of compliance issues in relation to planning conditions, and regulatory standards, title issues and Multi-Unit Development Act compliance including transfer of common areas and insolvent management companies. It is NAMA’s policy and practice that all properties are completed to a high standard, in compliance with all relevant planning and building regulations. In this context, NAMA has to date provided over €25m for completion works to facilitate the delivery of properties for social housing.”
A breakdown of the total number of units, from 2012 to Q1 2015, is as follows (source: Dáil):
Year : Number
- 2012 : 229
- 2013 : 367
- 2014 : 472
- 2015 : 130 (Q1)
Total : 1198 (to Q1 2015)
The following County Councils had no delivery of NAMA social housing units in this period: Wicklow , Tipperary, Sligo, Roscommon, Mayo, Longford, Leitrim, Laois, Donegal and Cavan. Cork City & County had just 132 units delivered in four years.
Despite the widely heralded plans by current Minister of the Environment Alan Kelly last November to dramatically increase social housing output and provision, the supply levels out of NAMA are inconsequential.
What are the reasons for this? Is it that in some cases the location is not appropriate? Or simply is it that the standard of construction of NAMA speculative residential units is poor? Dáil figures indicate that units offered by NAMA require considerable work, on average over €20,000 per unit, to bring them up to acceptable standards.
Other posts of interest: