Modern Housing for Low Income Families

Housing New Zealand will ask private developers to help it provide new modern housing for low income families to replace one of its most unpopular blocks of old state housing in Auckland.

The Minister responsible for Housing New Zealand and Housing Corporation Murray McCully says it is critical that the Government provide safe, comfortable and adequate housing for people on low incomes.

"That's why we are looking to replace the 30-year-old properties in Glendowie at Madelaine Avenue and Esperance Road which have small rooms, poor insulation, unsatisfactory kitchens and suffer a high rate of vandalism.

"Low income families have voted with their feet in recent years to live in other Housing New Zealand properties because the 169 homes in the Glendowie block don?t suit their modern needs," said Mr McCully.

"Housing New Zealand has been helping families find better accommodation for several months, and very few of the Glendowie properties arenow tenanted.

Mr McCully said Housing New Zealand planned to put the 169 homes upfor sale and re-development as a block.

"The company will seek expressions of interest from developers to re-develop the block. A condition of development proposals is thatthe company be offered the opportunity to buy or long term leasenew properties to maintain a Housing New Zealand presence in the area," he said.

"Some of the proceeds of the sale would go towards funding the leasing arrangement, while most of the balance would go towards providing more suitable additional housing for low income tenants, in areas of greater demand in the region.

"Never again should the Government take ownership of whole blocksfor public housing initiatives, but instead should seek a smaller presence.

"I have been assured by Housing New Zealand that it has better accommodation to offer the remaining households, but that their properties will not be sold from underneath them while they look at their options," he said.

Mr McCully said the sale of the Glendowie properties was consistent with Housing New Zealand's reconfiguration programme of breathing new life into communities by disposing of vacant properties in areas of low or no demand and acquiring properties for areas of high demand in Auckland,and throughout New Zealand.