Nama lined up for ‘redesign’ as Varadkar vows to tackle housing crisis
NAMA is to be redesigned as a semi-State developer and finance agency under the latest plans aimed at tackling the housing crisis.
The Government is investigating how to “re-purpose” the agency in a bid to help builders who are struggling to fund new projects.
The body, which was established at the height of the economic crash to manage distressed assets, expects to make a €3bn profit before it winds up in 2020.
However, Taoiseach Leo Varadkar now says it could “step in where the private sector has failed”.
The announcement was made in an off-script remark during his opening address at the Fine Gael Parliamentary Party think-in in Tipperary. Sources told the Irish Independ
ent the Departments of Finance and Housing are in discussions about how to change Nama’s remit – but it will be after October’s budget before any firm decisions are reached.
“Builders need money – and Nama has it,” said one Government source when asked what is being considered.
Sources said that the body would be able to access further funds that could be used to boost construction without affecting the Government’s budget.
Already Nama is aiming to facilitate up to 20,000 units by the end of 2020.
It has already delivered some 5,300 units. The agency has now disposed of the vast bulk of its assets. But it still has 11 unfinished housing estates on its books. Five of these are in Cork, three in Wicklow and one each in Dublin, Galway and Donegal.
The idea of instructing Nama to become more actively involved in the construction market has previously been proposed by the Labour Party.
Fianna Fáil’s Barry Cowen told the Irish Independent that it also supported the new approach from the Government and said that it was “better late than never”.
“It should have been done long before now. They can go off-balance sheet and provide money for investment,” he added.
Lease
Mr Cowen (inset below) suggested that one initiative should be a ‘build and lease back’ scheme involving local authorities. Addressing Fine Gael TDs and senators, Mr Varadkar promised the Government would get on top of the housing crisis. “In 2012, some people said we would never get on top of the jobs crisis, as unemployment hit 15pc, but we did,” he said. “We will bring the same determination and focus to solving the housing crisis.” He indicated that Housing Minister Eoghan Murphy would shortly announce changes to planning regulations “so we can make it more affordable to build apartments in our towns and cities and more affordable for people to buy them”.