Government in $220m housing partnership

The Labour-Progressive government today announced an agreement to ensure affordable housing and enhance the quality of life for around 4000 people.

It has agreed to provide the Wellington City Council with $220m over 10 to 15 years to significantly upgrade Wellington's aging social housing, Housing Minister Chris Carter said.

In return, the council has agreed to reinvest rental income back in to its housing business, fund all other replacement and renewal costs for its housing, improve its tenancy management, and remain in social housing for 30 years at current service levels.

"This unprecedented deal will improve the quality of life of some 4000 tenants, allow the Wellington City Council to retain and improve its social housing stock, and alleviate the considerable fiscal impact on Wellington City ratepayers," Mr Carter said.

Mr Carter said the Wellington City Council administered a critically important portfolio of 2354 social housing units, which were home to about 4000 people, and represented 11.5 percent of all rental housing in Wellington.

"The council's housing is mainly in the central city and largely caters for single people and couples. This neatly complements the almost 9000 state houses for larger families provided by Housing New Zealand around the Wellington region," Mr Carter said.

"Wellington council housing is currently outdated and aging. Units are small, cold, noisy, poorly configured for modern living, and unable to accommodate basic amenities. These issues have been building for decades and significant investment is needed to address them.

"The partnership will mean the government provides much of the capital, but Wellington City Council has agreed to remain a major social housing provider for 30 years. I am delighted they have agreed to this partnership, which supports and sustains families, young and old," Mr Carter said.

"The partnership reflects the fact that the government is committed to ensuring social housing is available in our major cities. It illustrates the strong relationship forged between the government, the Wellington City Council, and the wider local government sector."