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Housing programme to be renegotiated

Auckland City Council
Media release

14 December 2007

Housing programme to be renegotiated

The Auckland City Council will renegotiate the scope of an assisted home ownership programme with the New Zealand Housing Foundation (NZHF), a charitable trust.

The chairperson of the council’s Community Services Committee, Councillor Paul Goldsmith, said that the council’s vote follows an amicable settlement reached between the new council and trustees of NZHF to negotiate a scaled back programme.

The previous council resolved to spend $9 million in a programme with the NZHF to subsidise up to around 100 houses in Auckland city.

In October, council lawyers advised that a change to NZHF’s trust arrangements meant that council could withdraw from the project. NZHF disputed that assessment.

“The new council sees the provision of housing as a central government responsibility, not the responsibility of ratepayers,” says Mr Goldsmith. “Given the intense pressures on the council budget, other important projects that are the core responsibility of Auckland City Council must take precedence.”

“The Foundation’s work is valued in the community and the council has no criticism of the NZHF.

“All parties are pleased to have reached, in principle, a dignified and practical agreement to renegotiate the scope of the project.

Auckland City Council will allocate the targeted rate already collected for affordable housing towards a programme to be agreed with the New Zealand Housing Foundation.

Ends


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