NAMA yesterday issued an end-of-year summary of progress made in 2017, and since its inception, on a number of its key objectives and targets.
According to the report, NAMA has the capacity to fund the delivery of 20,000 residential units by end-2020, if commercially viable. It is estimated that 7,200 units have been delivered between 2014 and end-2017 through NAMA funding. Construction has begun on sites which will deliver a further 2,500 units.
An additional 7,000 units have received planning permission but are not yet under construction. Planning applications have been lodged, or will be submitted during 2018, for another 8,500 units.
Since inception, NAMA has generated over €40.5 billion in cash and, subject to favourable market conditions prevailing, it currently expects to return a surplus of €3 billion to the Exchequer by the time it completes its work in 2020.
Since the start of 2012, NAMA has delivered 2,456 houses and apartments for social housing, excluding houses provided under Part V arrangements. NAMA provides whatever funding is required to make social housing units habitable and has established a special vehicle, NARPS, to purchase suitable units for onward leasing to local authorities and approved housing bodies. To date, NAMA has invested approximately €350 million in remediating, completing and purchasing properties for social housing use.
The report states that NAMA exposure to unfinished housing estates has reduced from a peak of 335 in 2010 to just 8 estates. It is expected that these remaining estates will be resolved during 2018.
In his October 2017 Budget speech, the Minister for Finance announced that the Government had decided to establish a new vehicle, Home Building Finance Ireland (HBFI), to increase the availability of debt funding to commercially viable residential development projects. HBFI will draw on the expertise and skill in residential development funding that resides in NAMA but will be a legally independent entity.
The €750m initial funding for HBFI will come from Ireland Strategic Investment Fund (ISIF). HBFI funding has potential to fund the construction of 6,000 units in the coming years. This will be additional to the output from NAMA’s residential delivery programme. New legislation is currently being drafted and, subject to Oireachtas approval in early 2018, it is expected that HBFI will commence operations in mid-2018.