More funding to grow volume of social housing

An appropriation of $40 million dollars for 2011/12 will be used to grow the volume of social, affordable and niche housing provided by the third sector, says Housing Minister Phil Heatley.

“We know that the third sector is willing and able to step up and deliver housing. There have been numerous examples of joint-funded ventures with third sector groups like the Salvation Army, Vision West, Habitat for Humanity and Te Taiwhenua O Heretaunga to name but a very few, where up to three dollars worth of housing has been delivered for every dollar of Government funding invested,” says Mr Heatley.

To facilitate third-sector funding and maximise the amount of housing delivered, a new semi-autonomous Social Housing Unit (SHU) will be established in July 2011.

“One of the key recommendations of the Housing Shareholders Advisory Group (HSAG) was to remove the provision of third-sector funding from Housing New Zealand (HNZ) and give it to an independent dedicated Unit,” says Mr Heatley.

SHU will work with third sector providers, including iwi, that are largely self-sustaining and have the ability to draw on a range of external capabilities and sources of finance. It will provide funding, land or surplus state housing stock, or a combination of these, to support these groups to develop a mature social housing sector.

“The emphasis will be on significantly increasing the volume of social housing. However the new fund will cater for a range of providers including niche providers. As indicated in the budget statement an additional $5million is being held as part of the $45 million in contingency to progress the Government’s aims for the transformation of Tamaki,” Mr Heatley said.

”We want HNZ to now make the provision of housing for those in most need its top priority. Removing the responsibility for third sector funding from HNZ will allow it to focus on creating a fairer system, allowing more tenants in high need to be housed more quickly, in homes that are the right size and in the right location.

“The introduction of reviewable tenancies for new state tenants on 1 July signals an end to the concept of a ‘state home for life.’ Going forward tenants will have a state home for the duration of their need. Regular reviews will provide HNZ with a much clearer idea of tenants’ ongoing needs. Those who are able will be supported along a housing continuum towards the ultimate aim of achieving private rental or home ownership“, says Mr Heatley.

“If tenants substantially improve their circumstances and exit state housing the demand for alternative and intermediate affordable housing will grow and this is where we need the third sector to step up. They are ready, willing and capable,” he said.

Initially the SHU will sit under and be supported by the Department of Building and Housing, but its Executive will have direct reporting responsibilities to Ministers.

A Ministerial Advisory Panel (MAP) consisting of three or four members will oversee the establishment of the Unit. The role of this group will be to advise Ministers on the progress of the Unit and progress with social housing growth and reform.