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Social Housing Reform MCA

The overarching purpose of this appropriation is to improve the variety of social housing in New Zealand and grow the community housing sector, by making HNZC stock available to social housing providers. In particular, this appropriation provides for:

  • policy, operational and transactional work to implementation of the Social Housing Reform Programme through the Government's reform of social housing, and
  • direct sale costs for implementing the Social Housing Reform Programme.

What is intended to be achieved with this appropriation

This appropriation is intended to achieve the development of a variety of social housing in New Zealand and grow the community housing sector by making HNZC stock available to social providers.

What was achieved with this appropriation and each of its categories

The Treasury's work on the Government's Social Housing Reform Programme continued this year. Working closely with MBIE, MSD and HNZC we are looking to improve social housing tenants' outcomes and grow the number and quality of social housing places as well as encourage a greater diversity of providers.

A key component of the Treasury's work is the creation of a market for social housing in which registered community housing providers participate alongside HNZC. The first major milestone in the Treasury's work related to social housing in the Tāmaki region of Auckland with 2,873 properties transferred to the Tamaki Regeneration Company (TRC) in the Auckland suburbs of Glen Innes, Panmure and Point England. TRC established a community housing provider which is now managing these properties and tenancies.

In 2015/16 the Treasury initiated two transfers of social housing from HNZC to community housing providers - one in Tauranga and one in Invercargill.

Subsequent to the only party invited to submit a proposal withdrawing from the Invercargill process, the Government has decided not to proceed with a transfer there at this time. However, it has not ruled out initiating another transaction process there at some point in the future.

The proposed transaction in Tauranga involves 1,124 houses and tenancies. Following an Expression of Interest, three respondents were invited to submit to a Request for Proposal. An evaluation of these proposals has been undertaken and Accessible Properties Limited was announced as the preferred bidder in August 2016. Assuming the final negotiations are successfully completed, Accessible Properties will become the new landlord for Housing New Zealand tenants in Tauranga around April 2017.

Performance measure Target for 2015/16 Performance for 2015/16 Forecast for 2016/17

Social Housing Reform

The Social Housing Reform Programme is developed to allow the progress of transactions in 2015/16. Achieved Achieved Achieved

Implementation of the Social Housing Reform Programme

Develop policies and prepare legal documentation in light of progress with the Social Housing Reform Programme, including initial transactions. Achieved Achieved Achieved

Direct Sale Costs for Implementing the Social Housing Reform Programme

Progress Cabinet-mandated transactions as scheduled for 2015/16. Achieved

Achieved

 

Achieved
2015
Actual
$000
Social Housing Reform MCA 2016
Actual
$000
2016
Main Estimates
$000
2016
Supp. Estimates
$000
2017 Unaudited Forecast
as per BEFU 2016
$000
 

Departmental

       
1,915 Expenses: Implementation of the Social Housing Reform Programme 8,263 4,600 10,925 7,860
 

Funded by:

   
4,500 Revenue  Crown 10,875 4,600 10,875 7,858
- Other revenue 60 - 50 2
 

Non-departmental

       
- Direct sale costs for implementing the Social Housing Reform Programme 4,176 7,900 6,900 3,600

Note:

The Social Housing Reform Programme underspend is owing to the timing for the consultation and commercial proposal stages being extended, delaying the incurrence of subsequent transaction-related costs.

Further information

More information on what has been achieved with this appropriation is provided in the reporting against the following strategic intention:

  • The State sector efficiently and effectively delivers results for New Zealanders.
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