Housing Association buy apartments from NAMA

A very weird report on RTE TV News just now about the Cluid Housing Association buying apartments in Sandyford from NAMA. Not a lot in print about it yet, but here’s some…

examiner.ie/breakingnews/ire … z1TJ70DCbt

RTE report this as:


98FM report that:

98fm.com/2011/category-news- … al-scheme/

The RTE TV News at 1 said that CLUID paid an average of €177,000 per unit.

My questions:

Where is the “social dividend” RTE mention?
Where did the €177,000 figure come from?
Why are they renting more than half of these to private renters?
How is this a “new approach” to social housing?
How can a public body get access to NAMA deals but private individuals can’t?

Whats the problem ? The charity has had its funding cut . So it buys apartments cheaply from NAMA and gives them to people on the housing list which takes pressure off the government . Everybody is a winner if you ignore the fact that NAMA and the government are the same thing . The charity due its funding is also the government so best to ignore that as well .

Its just a long way around not having fire sales .

Presumably to avoid creating ghettos. It is generally regarded as the most successful housing model - based on the German post-war system and used in Mitteleuropa in general.

Presumably getting housing associations more involved - and getting the state to step back.
Creating a broader spectrum of interests in housing - not just amateur private landlords and the state.

I didn’t say I had a problem with it EK. Just the questions at the bottom of my post.

Not to be smart about it Larry , but you should have a problem with it . The government is buying the apartments off itself but with the added expense of NAMA and a charity .

How can a charity rent out apartments privately ? Going to look bad if a private renter does not pay the rent and the charity has to evict them . Maybe they will employ somebody else to do the dirty work ?? How many people and organisations are now involved ?

Common denominator in all of this is the taxpayer .

A Mad scheme under the guise of a Charity. A scheme within a scheme and being stood over by the government. Charity begins at home. A Tax payers write off as a charity. We are all in the charity business now. I have always wondered how the african missions got away with being a charity status. There are too many unregistered charities in Ireland.

You are mistaking a not-for-profit organisation with a smashie’n’nicey charitee…

Um, who else is going to buy them?

housing associations are charitable organisations in name only folks. Their activities are 100% funded by government grants and they are regulated by the 1992 Housing Act. Once they register with the Department of the Environment they recieve grant aid to buy or build dwellings which must be let as social housing - ie to people from the local authority waiting list who are charged an income related rent, not a market rent. This is an example of the government buying NAMA properties because there is no other market. The first of many I think

Hold on a second, let me get my head around this.

Developers borrow money from Anglo to build apartments. Anglo goes up in smoke, taxpayers take over the debts
The developer has his loans transferred to NAMA. NAMA is funded by the taxpayer
NAMA sells the apartments to a housing association. The housing association is funded by the taxpayer

Am I missing something?

Sort of. The housing association is funded by renters with the private renters subsidising the housing list renters to a small degree and the state doing a bit more. The state provides finance to the housing association through the HFA. Think of it as a REIT…

I would expect that at least some of the eventual rents to be paid by some form of rent allowance/unemployment benefit - funded by guess who.

Why are they paying €177,000 for apartments that nobody wants?

Why do Cluid have access to seeing NAMA’s available stock but I don’t?

Why are more than half these properties - 34/58 - being rented privately?

How is there any “social dividend” here if the HA are paying above market price for these properties?

Housing Associations are obliged to allocate 75% of their housing to applicants on the relevant LA waiting list. My understanding is that this figure is much closer to 100% in reality. Apartments are generally not considered by LAs in my limited experience for families with more than one child or two parent families so a significant demographic who have been on the waiting list for years will have a backlog somewhat cleared - single homeless and single parent families with one older child

Nonetheless it is an unnecessarily complex merry go round of central funding on the face of it.

I hear the development is Beacon South Quarter

Taxpayer overpays for NAMA properties to disguise how taxpayer overpaid for developers loans coming out of failed banks, SHOCKER

Also heard that Beacon South Quarter is the development in question

Any estimate on how much of the rest of BSQ was mothballed? (How many other units there could be there?).

From here: viewtopic.php?f=4&t=9924&start=120

johnnyskeleton linked to a 1-bed for sale for 525k… 177k is a 66% drop, assuming that is the price for 1-beds (which I doubt, I assume it is the average price for a mix of 1 and 2).

edit: From the start of the same thread viewtopic.php?p=84820#p84820
1-bed 325k
2-bed from 365k
(May 2008)

Interesting that this comes out as they are preparing property tax. Have seen estimates of between 6000 and 16000 NAMA owned apartments in Dublin. Didn’t the articles in the IT say that housing charities are exempt from the new tax ?

That property tax is going to dent the extend and pretend strategy.

This is pissing me off. I would like to rent one of those apartments and if there was any kind of a free market I’d be able to get a two bed for €600 per month. The levels of market manipulation in this country is insane.

In what other European capital city can you rent a decent 2 bed for 600 per month ?

I agree they are trying to manipulate the market. Not sure its really working.