Nama “on track” to deliver 20,000 homes before revised deadline
The National Asset Management Agency (Nama) is “on track” to deliver 20,000 homes by the end of 2021, the Dáil spending watchdog said.
Nama previously told the Public Accounts Committee (PAC) that he would miss the target of delivering the homes by the end of 2020, blaming the impact of the Covid-19 restrictions on construction work.
Managing director Brendan McDonagh also told PAC last October that some home builders were able to pay off debts and leave Nama, which reduced the agency’s capacity.
He also referred to issues beyond Nama’s control, such as the provision of water and road infrastructure, when asked about developments of housing with building permits where construction had failed. not yet taken place.
Nama told the government in 2015 that he could potentially bring 20,000 units to the Irish building stock between 2016 and 2020.
A PAC report released in December said TDs noted Nama’s explanation of construction delays due to Covid-19 and other factors, and said the agency must ensure that the target of 20,000 units is reached by the end of 2021.
The PAC received a copy of a circular from the Ministry of Public Expenditure and Reform to senior officials addressing the issues raised in the committee’s report.
It indicates that the government has been informed that Nama remains “on track to meet its target of delivering 20,000 units by the end of 2021”.
This would be “subject to current Covid-related restrictions on construction and commercial viability.”
Nama is said to have delivered 19,000 units by the end of 2020.
This breaks down into 12,450 new residential units which were directly financed or facilitated by Nama and 6,550 which were delivered “on previously secured land in Nama for which Nama financed a building permit, allowing works, legal fees. or detention ”.
Separately, the letter addresses the findings of the PAC report on the sale of the Nantes Project loan portfolio.
The PAC concluded that the sale directly resulted in a loss of around 10 million euros for the taxpayer.
He also found that “this, together with the lack of a competitive sales process, resulted in a total potential loss for the taxpayer of around € 29 million”.
The letter from the Public Expenditure and Reform Department states that Nama indicated that “although they accept that there was a miscalculation in setting the repayment target for the portfolio, they do not think that the error had a negative impact on the end result of the sale “.
He adds: “Nama indicated that he had generated 210 million euros in cash from the connection with the debtor and that it was the best achievable business result at that time and that it resulted in an overall profit. for the taxpayer of 68 million euros. “
He describes how Nama said he “developed robust internal controls to try to ensure that no further miscalculations could occur in the future.”