State to rent Nama properties for social housing...
The government plans to rent thousands of vacant houses and apartments from the National Asset Management Agency (Nama) and use them for social housing.
Representatives of the new ‘bad bank’ have held meetings with officials in the Department of the Environment, Heritage and Local Government to explore the possibility of renting out properties that would otherwise lie empty.
Housing minister Michael Finneran said his officials were seeking to ensure a ‘‘social dividend’’ from Nama by renting residential units on long-term leases for social housing purposes.
Finneran said an arrangement could help to deliver ‘‘a return in line with Nama’s mandate’’.
The government is under pressure to demonstrate to the European Commission that Nama will be capable of generating significant ongoing cash flows over its lifetime, and that the new agency will not be excessively generous to participating banks.
While a move to rent properties for social housing would generate income for Nama, it could be controversial, as it would mean that tax revenues were being used to pay rents to the agency.
Finance minister Brian Lenihan told the Dáil last year that Nama would aim to generate a profit and that such an outcome would be achievable in certain circumstances. However, critics argued that the minister’s assumptions were too optimistic and based on forecasts of ongoing income streams and a recovery in property values that were unlikely to be realised.
‘‘From a social housing perspective, I see clear potential for real and meaningful synergies between the work of Nama in ensuring the stability of the financial system, and the role of my department in responding to social housing need," said a statement from Finneran.
He said the provision of social housing by local authorities was moving towards ‘‘more flexible delivery mechanisms’’ that included long term leases and the rental accommodation scheme.
He said the government favoured this approach over the traditional model of building or acquiring homes for social housing purposes.
Research published earlier this month by the National Institute of Regional and Spatial Analysis, which is based at NUI Maynooth, estimated the number of empty houses and apartments at more than 300,000. A large number of those are likely to transfer to Nama.
Report by David Clerkin and Ian Kehoe - Sunday Business Post
The government plans to rent thousands of vacant houses and apartments from the National Asset Management Agency (Nama) and use them for social housing.
Representatives of the new ‘bad bank’ have held meetings with officials in the Department of the Environment, Heritage and Local Government to explore the possibility of renting out properties that would otherwise lie empty.
Housing minister Michael Finneran said his officials were seeking to ensure a ‘‘social dividend’’ from Nama by renting residential units on long-term leases for social housing purposes.
Finneran said an arrangement could help to deliver ‘‘a return in line with Nama’s mandate’’.
The government is under pressure to demonstrate to the European Commission that Nama will be capable of generating significant ongoing cash flows over its lifetime, and that the new agency will not be excessively generous to participating banks.
While a move to rent properties for social housing would generate income for Nama, it could be controversial, as it would mean that tax revenues were being used to pay rents to the agency.
Finance minister Brian Lenihan told the Dáil last year that Nama would aim to generate a profit and that such an outcome would be achievable in certain circumstances. However, critics argued that the minister’s assumptions were too optimistic and based on forecasts of ongoing income streams and a recovery in property values that were unlikely to be realised.
‘‘From a social housing perspective, I see clear potential for real and meaningful synergies between the work of Nama in ensuring the stability of the financial system, and the role of my department in responding to social housing need," said a statement from Finneran.
He said the provision of social housing by local authorities was moving towards ‘‘more flexible delivery mechanisms’’ that included long term leases and the rental accommodation scheme.
He said the government favoured this approach over the traditional model of building or acquiring homes for social housing purposes.
Research published earlier this month by the National Institute of Regional and Spatial Analysis, which is based at NUI Maynooth, estimated the number of empty houses and apartments at more than 300,000. A large number of those are likely to transfer to Nama.
Report by David Clerkin and Ian Kehoe - Sunday Business Post