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Community housing gets $40 million boost

Hon Phil Heatley

Minister of Housing

28 May 2009

Community housing gets $40 million boost

Budget 2009 will provide an extra $40 million for housing services over the next four years, Housing Minister Phil Heatley says.

Most of the additional money – $20 million in capital funding – will go to Housing New Zealand’s Housing Innovation Fund.

“This funding fulfils the Government’s pre-election commitment to boost the resources available to the community and voluntary sector for affordable housing,” Mr Heatley says.

“Resources will be targeted at providers who have a proven track record of helping people into affordable rental accommodation and home ownership. This will ensure that in this time of need, we get the most homes for the money available through the Housing Innovation Fund.

“Notably, $5 million of this new funding is for phasing in Maori development projects, to complement the work under the Rural Housing Programme.

“I will be reviewing how to get further value from the fund before making future financial commitments to it. However, the boost we have given the fund in this Budget underscores the government’s support for the role of community and voluntary sector in housing,” Mr Heatley says.

Budget 2009 provides $12 million over the next two financial years in operating funding for Housing New Zealand’s Rural Housing Programme.

“Government funding for the Rural Housing Programme expired a year ago, leaving Housing New Zealand to fund it internally. Supporting quality, affordable housing in rural areas is a significant issue,” Mr Heatley says.

Budget 2009 provides another $6.4 million in operating funding in 2009/10 for the Residential Tenancies Services.

ENDS

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