NTMA says social housing measures will have real impact

Measures taken by the National Treasury Management Agency to alleviate Ireland's social housing shortage without affecting the State's finances should have real impact, according to its chief executive.

The Government’s Action Plan for Housing and Homeless, launched on Tuesday, said the NTMA is examining the feasibility of setting up a funding vehicle along with the private sector to invest in social housing in a way that does not impact the Government’s balance sheet.

"Specifically, the NTMA was asked to examine the off-balance sheet possibilities [in delivering] residential and social housing," NTMA boss Conor O'Kelly told the Dáil's Public Accounts Committee on Thursday.

Local authorities

The vehicle would buy properties that local authorities can't currently afford and lease them over 20 to 25 years, he said. It would replicate a National Asset Management Agency subsidiary called Nama Asset Residential Property Services, which was set up in 2012 and has bought hundreds of properties from its debtors and leased and sold them on for social housing purposes.

“This fund could bring in capital from the [Ireland’s] Strategic Investment Fund and potentially external capital,” O’Kelly said. ISIF is run by the NTMA.

The Government report estimates that the special purpose vehicle could provide about 5,000 units over five years for social housing purposes.

Separately, the plan also includes the possibility of ISIF working on funding the development of infrastructure to “unlock” large development sites.

“We’re talking to developers and local authorities,” said Mr O’Kelly. “We can bring in co-investors and keep it off balance sheet.”