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Government funding for new housing projects

Hon Phil Heatley
Minister of Housing

16 May 2012

Government funding for new housing projects

People in need will get the most benefit from Government funding for new housing projects, to be developed by non-government providers.

Housing Minister Phil Heatley today announced the successful applicants to the $25.3 million Social Housing Unit (SHU) Growth Fund.

The aim of the Growth Fund is to increase the supply of social and affordable housing through non-government providers developing and providing housing at scale.

Sixteen of the new projects are in Auckland and will result in 153 extra homes in the city.

“These worthwhile new projects will make a lasting contribution to Auckland city’s social housing pool,” Mr Heatley said.

"The successful organisations have demonstrated credentials and plans for ongoing growth of social housing provision. Over time they will complement state housing provision by providing a pathway to greater housing independence and in some cases home ownership," the Minister said.

The SHU, which administers the fund, was set up last year as a key part of a series of recent Government initiatives to transform social housing delivery. It aims to meet the growing need for social and affordable housing by allocating funding and forming partnerships with non-government providers that deliver social and affordable housing.

The largest allocation of $8.86 million goes to the New Zealand Housing Foundation, to build 68 new affordable homes which will provide 205 bedrooms. They will be built in West Auckland (15), Takanini (15), Mt Albert (14), New Lynn (22) and Kaikohe in Northland (2).

The target market for these houses will be low-income households where people are working full-time but haven’t enough income to save for and buy a home without some form of assistance.

A new housing project in the centre of Mangere, South Auckland, has received SHF funding of $4.33 million. The Airedale Property Trust is to build the first stage of 22 homes comprised of 14 three-bedroom homes, three four-bedroom homes and five five-bedroom homes.

This development targets Pacific families who are currently living in crowded, unstable or unsuitable accommodation. As well, Lifewise (the Social and Community services arm of the Methodist Mission Northern) will work with the Tongan Parish to establish a supportive neighbourhood environment for people living in this development.

Clusters of 31 one- and two-bedroom units will be constructed as a result of $3.89 million funding for Community of Refuge Trust, a community housing organisation that provides affordable accommodation for people with social needs. It will build clusters of units in Mt Roskill (5), Glen Innes (6), New Lynn (15) and Royal Oak (5).

An allocation of $8.25 million has also gone to Accessible Properties NZ Ltd, a wholly owned subsidiary of IHC, for 60 new houses throughout the country that will provide accommodation for people with intellectual disabilities.

These houses will be built in South Auckland (15), West Auckland (12), Hamilton (10), North Shore (7), Wellington (7), Christchurch (4) and Tauranga (5).

The SHU had a total of $37.35 million to distribute in the current financial year. Funding distribution for the Niche, and Māori and Rural segments, was announced last week.

ENDS

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