Ministers confirm commitment to social housing   28 Jan 2015

Hon Bill English
Minister Responsible for Housing New Zealand

Hon Paula Bennett
Minister for Social Housing

28 January 2015

Ministers confirm commitment to social housing

The Government’s commitment to helping New Zealanders in need by providing more social housing is at the heart of its social housing reform programme, Ministers Bill English and Paula Bennett say.

Prime Minister John Key today confirmed increased funding for social houses, where tenants receive an income-related rent subsidy from the Government.

“The social housing reform programme will ensure that more people who need housing support can access it from a wider range of providers,” Housing New Zealand Minister Bill English says. “This will include some who offer other social services to help meet tenants’ needs.”

Social Housing Minister Paula Bennett says the reforms are consistent with the Government’s determination to improve the circumstances of New Zealanders who need the most help.

“This programme is part of the Government’s wider approach to delivering better services to New Zealanders who rely on them – and to do this more effectively on behalf of the taxpayers who pay for them.”

The Government’s five objectives for social housing reform, and today’s main announcements are:

1) Ensure that people who need housing support from the Government can get it.
The Government will increase funding for social house subsidies from about 62,000 places currently to around 65,000 places by 2017/18 at an estimated cost of another $40 million a year.

As part of that overall increase, an initial 300 income-related rent subsidies will shortly be offered to community housing providers in Auckland.

A $500,000 cash injection will be available for emergency housing, alongside a wider review of funding. The Government will create an Auckland emergency housing database.

2) Help social housing tenants to independence, where appropriate.
An additional 3,000 tenancy reviews in the next couple of years will focus on market or near-market renters. This will take the number of planned reviews to almost 5,000 over the next two years.

Financial assistance – for example, through letting fees or bond payments - may be offered to some people on the social housing register who may not need to be in the social housing system. The Government will also boost intensive case management for work-ready beneficiaries who are on the register.

3) Ensure that properties used for social housing are the right size and configuration, and are in the right places.
The Government will initiate a strategic review of Housing New Zealand, including its asset management plans.

It will also accelerate Housing New Zealand’s programme of building the type of new homes that are wanted and in the places they are needed, while disposing of houses that are no longer required.

4) Increase affordable housing supply, particularly in Auckland.
Housing New Zealand will accelerate redevelopment of its land to free up more land for private, affordable housing, and to rejuvenate state housing neighbourhoods and suburbs with a wider mix of housing types.

5) Encourage more diverse ownership of social housing
Engagement and consultation will begin soon, including with community housing providers and iwi with a view to selling between 1,000 and 2,000 Housing New Zealand properties over the coming year for use as social housing run by approved community housing providers. These providers may buy properties on their own, or they may go into partnership with other organisations lending them money, contributing equity or providing other services.

Properties sold as social houses will have to stay in social housing unless the Government agrees otherwise. In addition, a requirement of any sale will be that existing tenants continue to be housed for the duration of their need.

The Government must be satisfied that transactions are fair for taxpayers and result in better outcomes for tenants and local communities.

The Government is committed to maintaining at least 60,000 properties in Housing New Zealand’s portfolio by 2017.

“This won’t reduce the number of social housing places available – indeed these will increase by 3,000 by 2017/18,” Mrs Bennett says. “It just means more tenancies will be managed by registered community housing providers rather than Housing New Zealand.

“Good housing is an important factor in family health and well-being and the range of measures we have announced today will enable the social housing sector to do a better job of providing the right housing, in the right place for people in need of help.”

Mr English says that if New Zealand is to succeed in solving some of its longstanding social challenges, the Government needs to be open to working with community groups, non-government agencies and the private sector.

“The Government doesn’t have a monopoly on good ideas, advice and expertise. But we do have the resources to create better, fairer and more diverse responses to social needs, and that is what we are doing,” he says.

“Our motivation is to improve the circumstances of New Zealanders who most need the Government’s help, while also driving better value for taxpayers’ dollars and I am confident that the changes announced today will help do that.”

Mr English says the whole package is consistent with five bottom lines the Government has set for its social housing reform. They are:
• Housing New Zealand and community housing providers will collectively provide more social housing places than there are now – particularly in Auckland and Christchurch.
• Housing New Zealand will continue to be by far the largest owner of social housing and by 2017 will provide at least 60,000 properties.
• Properties will be sold only if this results in better services for tenants and fair and reasonable value for taxpayers.
• Tenants in properties that are sold will continue to be housed for the duration of their need.
• The Government will spend more on income-related rent subsidies and ensure that Housing New Zealand has enough capital to build new social housing and to develop its existing properties.

Information on the Social Housing Reform Programme is available at: www.socialhousing.govt.nz

For more information:
• Social housing - Qs and As
• Social housing by the numbers

ENDS

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