Briefing to incoming Minister Housing and Urban Development

A number of briefing papers were prepared. This briefing paper was prepared by : the Ministry of Social Development (MSD), which is the lead state/social housing agency, the Ministry of Business, Innovation and Employment (MBIE), Housing New Zealand Corporation (HNZC – a Crown agent), Te Puni Kōkiri and the Treasury

Key statements made in the Housing and Urban Development – state and social housing briefing paper include:

• The broader housing market is creating significant challenges for state/social housing – we would like to discuss with you how to respond to growing demand

“Demand for state/social housing is increasing rapidly, driven significantly (but not only) by declining housing affordability and a shortage of affordable housing for private rental or ownership. The number of eligible households waiting to be placed in state/social housing rose by 27 percent between September 2016 and September 2017, and by 72 percent between September 2015 and September 2017.”

• Your approach to increasing (and modernising) state/social housing will have an impact on the cost of new supply and the speed at which it can be secured.

“MSD has an existing target for new supply (6,400 by 2020), but would appreciate the opportunity to discuss with you whether this should be revised in light of increasing demand and your priorities…. Officials would like to discuss your views on an appropriate level of supply and whether you would like to seek a greater level of supply from HNZC than currently proposed, as well as other options for new supply, including partnerships with community housing providers, local government and iwi. We would also like to discuss with you your manifesto commitment to increase the availability of houses to New Zealanders through KiwiBuild.”

• Demand for emergency and transitional housing has considerably exceeded expectations and raises questions about social sector roles

This is a useful paper to view the current figures and legislative environment impacting on social housing in New Zealand. Read more here.

Additional briefings include:

– MBIE briefing to Minister of Housing and Urban Development

– Multi-agency briefing Delivering Your Housing Plan

– MBIE Briefing to Minister of Building and Construction

– Housing New Zealand briefing to the Minister Housing and Urban Development

The Minister, Phil Twyford, commented on these briefings to Radio New Zealand.

The Herald reported on the release of these briefings

• The Government says it has “inherited a mess” after newly released figures on the country’s housing crisis put the national shortfall at more than 70,000 homes.

• State housing agencies said the new Government’s plan to increase its social housing supply by 1000 a year could impact the cost and speed at which it happens.

• A new report to the Housing Minister showed a total of $21.6m was spent on emergency housing grants in the six months to September this year – driven by higher demand than expected.

• Housing New Zealand has identified a need for a long term sustainable financial strategy as it grapples with an increased need for social housing.

In the state housing agency’s briefing to the new Housing Minister Phil Twyford released today it said rents alone were not sufficient to cover its operating costs “let alone costs of land, and building”.