Proposed social housing transfers proceed to next phase

  • Paula Bennett
  • Bill English
Social Housing HNZC

The proposed transfer of approximately 1,500 Housing NZ Corporation houses and tenancies in Tauranga and Invercargill to registered Community Housing Providers will shortly move to the next stage, Ministers Bill English and Paula Bennett say.

As announced by the Prime Minister in January, the Government’s Social Housing Reform Programme includes plans to transfer 1,000 to 2,000 Housing NZ Corporation houses and tenancies to registered Community Housing Providers over the next year.

“The Government will now seek Expressions of Interest for transfers in Tauranga and Invercargill following positive responses to market sounding, which closed on 25 September,” Minister Responsible for Housing New Zealand Corporation Bill English says.

“The EOI stage is the first chance for Community Housing Providers to register their intent to participate in transfers in Invercargill and Tauranga.”

The EOI phase will begin on 20 November and will close in early February next year.

“This is a significant change for the supply and management of social housing in New Zealand,” says Social Housing Minister Paula Bennett.

“This is a good opportunity for the community housing sector to grow, diversify and innovate, and therefore ensure more families in New Zealand benefit from their expertise in both the provision of social housing and their ability to provide more support for those in need.

“We all, together, need to ensure we can implement a transfer process that results in a manageable, regulated, and sustainable industry, while also never losing sight of the overall goal – better looking after vulnerable New Zealanders.

“I know we are on the right track and have confidence we will achieve the best way forward for this ground breaking initiative.”

Background

The Government’s Social Housing Reform Programme is designed to get more people in need into quality social housing - either through Housing NZ Corporation or registered Community Housing Providers. The objectives of the Social Housing Reform Programme are to:

  • Ensure people who need housing support can get it and receive social services that meet their needs.
  • Ensure social housing is the right design and size and is in the right place for people who need it.
  • Help social housing tenants to independence, as appropriate.
  • Encourage and develop more diverse ownership of social housing, with more innovation and responsiveness to tenants and communities.
  • Increase affordable housing supply.

The SHRP will:

  • Increase Government funding for social housing. 
  • Include a transfer of houses and tenancies to registered Community Housing Providers who are eligible to be paid market rent via the IRRS
  • Enable registered Community Housing Providers to provide more social housing in partnership with the Government
  • Over time, integrate housing services better with other support tenants may need, e.g. budgeting, mental health services and moving towards housing independence.

The Government’s bottom lines for the Social Housing Reform Programme are that:

  • Housing NZ Corporation and Community Housing Providers will provide more social housing places than currently exist, particularly in Auckland and Christchurch.
  • Housing NZ Corporation will continue to own the most of the country’s social housing properties and will own at least 60,000 by 2017, down from around 68,000 in 2015.
  • Properties will only be sold if this results in better outcomes for tenants and fair and reasonable value for taxpayers.
  • Tenants in properties being sold will be continue to be housed for the duration of their need – and their rights and interests will be protected, whoever owns their house.

The Government will spend more on Income Related Rent subsidies and ensure Housing NZ Corporation has enough capital to build new social houses plus develop its existing properties.