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Funding social and affordable housing

There are a number of ways that community housing is funded in New Zealand:

Income Related Rent Subsidy (IRRS)

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If a tenant qualifies for income-related rent the Government pays the difference between the tenant’s rent and market rent. For a community housing organisation to receive the IRRS subsidy you would need to be eligible and registered with the Community Housing Regulatory Authority (CHRA). You would then enter into a contract with the Ministry of Social Development for the tenancy services you intend to provide and receive the income-related rent subsidy for. More information is available at housing.msd.govt.nz.

Opening of the Accessible Properties complex in Linwood, Christchurch November 2015. Cutting the ribbon is Roger Bridge, chair of the Rata Foundation who contributed a capital funding grant for the housing development, as well as tenant Lena and her children, Jade and Jasmine.

Te Puni Kōkiri

te puni kokiriBuilding.repairs.pngThe Māori Housing Network was established within Te Puni Kōkiri to help Māori individuals, whānau and roopu with practical support and financial assistance for a range of housing activities. In the 2015-16 financial year the Network will invest $14.491 million into improving Māori housing. Read more about the network’s investment strategy at tpk.govt.nz

Government housing stock transfers

The Government intends to transfer ownership of some Housing New Zealand houses in Tauranga and Invercargill to registered Community Housing Providers (CHPs). This is part of the Government’s social housing reforms where Government are making use of crown housing and land assets to fund social housing reform intentions. The community housing sector has been asked to take part in this process.

View our Inform Section to read the community housing sector response to this or Visit hnzc.co.nz for further information.

Ministry of Social Development Purchasing strategy December 2016

Government, through the Ministry of Social Development (MSD) have established a number of policy initiatives to address emergency and social housing shortfalls and the recent MSD purchasing strategy, 13 December 2016, can be found here. A statement from this strategy shows:

“Over the past year the Government has invested another $144 million to help community housing providers increase the supply of social housing places. MSD is looking for more than 6,400 new places over the next four years. As a result we’ve seen more community housing providers come on board. Last year we had 26 registered providers and this year we have 41. As at the end of September (2016) they were supporting over 3,100 kiwi households.