Not-for-profits put people’s needs first

Jan 31, 2019 | News

APNZL supports the view that government investment in public housing is best achieved through not-for-profit organisations putting people’s needs first.

“The Government’s decision to allow private developers access to Community Housing supports is a misguided use of tax payer’s money and a disservice to existing not-for-profit Community Housing Providers,” says Accessible Properties Chief Executive Greg Orchard.

“By allowing for-profit developers to register as Community Housing Providers the New Zealand Taxpayer is now directly subsidising these organisations at the expense of building and sustaining a robust not-for-profit Community Housing sector.”

For-profit private developers are required to make financial returns for their equity investors. This will mean Taxpayer Subsidies flow into the pockets of private individuals with those funds permanently lost to the Community Housing sector.

“As a Community Housing charity any surplus we make is reinvested into providing more and better houses and other social services that support people in need,” says Greg.

“Importantly our work is about more than just providing bricks and mortar. We go beyond the role of landlord, investing long-term in social supports for our tenants and their communities.

“Money that goes to Community Housing Providers currently stays in the system and is recirculated for the benefit of people in need – it’s not about having to get a return on investment.”

IHC and Accessible Properties have increased the number of houses we provide from 850 to 2500 in the past six years.

“We have shown that through the building of equity, by retaining and reinvesting surpluses, together with the recirculation of historic investment, existing not-for-profit providers can significantly grow the sector.

“Instead of complicating the market by introducing for-profit developers, the Government should re-introduce upfront capital grants for Community Housing Providers so more families can be housed sooner,” says Greg.

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