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$24 million housing investment a step in the right direction


6 September 2016

$24 million investment in Auckland housing step in right direction

Community Housing Aotearoa says the Government’s move to invest $24.4m into more affordable housing in Auckland is providing a good starting foundation.

The Government is giving an extra $24.4 million to community housing providers to increase the supply of social housing in Auckland.

“It’s great to see Government taking the housing issue seriously and committing to increasing the number of affordable homes available in Auckland through community housing providers. We’ve been asking Government for a capital injection to go along with the rent subsidy – and they’ve heard us, that’s great,” says CHA Chief Executive, Scott Figenshow.

“This will allow community housing providers in Auckland to target areas of need and make sure homes are fit-for-purpose, provide more one-and two-bedroom and larger homes, which will enable better outcomes for individuals and families.

“It’s also great to see that flexibility is built into this grant,’ Scott Figenshow says.

Community housing organisations will be able to either:

1. receive an upfront grant of up to 50 per cent of the value of the development, or;

2. once the development is built, receive a weekly grant of up to 50 per cent of market rent on top of the current rental subsidies the Government provides, or

3. they can receive a combination of both, up to the equivalent level of funding provided by either the upfront funding or weekly subsidy alone.

4. Community housing groups providing social housing in a property leased from the private market can also receive a grant of up to 50 per cent of market rent, on top of the subsidised rent they receive.

Scott Figenshow says increasing the number of homes provided by community housing organisations in Auckland will be better for these communities in the long run.

“They will have social housing that is truly responsive to tenant requests and needs, and which provides more housing options, including social, affordable rental and home ownership options.

“These much needed homes will be retained in local communities with the real opportunity to increase those assets,” he says.

These homes will also be less subject to political change or paralysis, and tenants will be comfortable knowing they are living in homes covered by quality standards with strong regulations.

“It’s great to see we are moving in the right direction,” he says.
[ends]

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