Case Study_Monte Cecilia_FINAL
Flexible purchasing
The answers to the following questions are here:
How are CHO’s and Housing New Zealand agreements are similar and different. Is the intent to create a level playing field?
Is this the end of IRRS? Will all rent subsidy be handled through tailored agreements?
Go here for MSD’s purchasing intentions document:
What gives a tenant certainty that the contracting agency (CHO or HNZC) will be able to continue to use the benchmark of 25% of tenant income in all new tailored agreements?
Will the ‘tailored agreements’ allow for up-front subsidy payments that can be used toward building new units?
How long can contracts be for (we understand 10-25 years is the range, but how does a CHO know what they are eligible for?)
Can the ‘tailored agreement’ with the CHO include payments for tenancy management, wrap-around service coordination, payment above the median market rent?
If so, then what is the transparent formula or protocol that a CHO can follow to apply the rules?
How is inflation addressed through the tailored agreement? Is there an annual adjustment based on changes in market rents? Are there choices for how future year cost increases are dealt with?
If there is a shock to the system that changes a cost beyond the inflation-related increases (eg interest rates, earthquake insurance changes, substantial rates rises, etc), how will the tailored agreement address those?
Is it planned to have a published set of tailored agreement provisions, which provides certainty and transparency, or is each agreement up for negotiation?
If it is planned to have a published set of provisions, what process is being used to develop it.
How can we be of service in establishing the parameters for the “Ministerial Direction” on the purchasing terms?
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