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Key topics: HNZC

HNZC in the context of Social Housing Reform

20. HNZC is currently the dominant provider of social housing in New Zealand. The SHRP envisages “a less dominant role for HNZC, where non-government social housing providers enter the market, and/or existing providers expand their operations, and HNZC makes more efficient use of capital” [2]

21. [2]

22. [2]

23. Deciding on the appropriate future for HNZC will involve Ministers balancing a number of competing objectives including:

  • supporting the development of a non-Government social housing sector
  • releasing land for the provision of affordable housing
  • increasing HNZC's efficiency and putting it onto a more financially sustainable footing
  • minimising the impact of changes to social housing on the Crown's accounts (including understanding the implications for the Crown Balance Sheet) and fiscal strategy, and
  • ensuring those with highest housing need are housed.

24. [2] This will need to be recognised in setting the strategy and performance expectations for the entity.

Income-Related Rent Subsidy (IRRS)

25. Under current policy, the Government pays HNZC the Income Related Rent Subsidy (IRRS), which is designed to:

  • ensure that HNZC tenants in need pay no more than 25 percent of their income in rent, and
  • offset the gap between market rentals and the tenant contribution.

26. Non-government social housing providers and their tenants do not get equivalent government support.[4] One medium-term objective of the SHRP is that “financial assistance (to tenants and providers) [is] neutral towards provider ownership.” [2] . One particular model being explored is a contestable funding pool. [2]

27. [2]

Notes

  • [4]Tenants may be eligible for an Accommodation Supplement payment from Work and Income, however this usually results in a lesser level of subsidy relative to state tenants in roughly similar circumstances. Some providers charge less than market rent to make housing affordable but do not receive the top-up subsidy that HNZC receives.
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