Vote Housing and Urban Development - Social Services and Community Sector - Estimates 2021/22

Vote Housing and Urban Development#

Overview of the Vote#

The Minister of Housing is responsible for appropriations in Vote Housing and Urban Development for the 2021/22 financial year covering the following:

• a total of just over $1,382 million to secure the purchase and provision of public housing and associated support services
• a total of $1,069 million for increasing housing supply through the provision of infrastructure investment as part of the Housing Acceleration Fund
• a total of just under $869 million for acquisition, construction and provision of land and dwellings
• a total of $360 million to provide for expenses incurred as part of the sale of land and dwellings
• a total of just under $272 million to deliver transitional housing places and associated support services
• a total of $129 million to support construction sector activity, and increase housing supply
• a total of just over $122 million to First Home Grants for people who meet the required eligibility criteria
• a total of just under $122 million to assist with access to home ownership with interest-free loans through the Progressive Home Ownership scheme and associated support services
• a total of just over $75 million for the delivery of services by Kainga Ora - Homes and Communities that contribute to housing and urban development activity
• a total of just over $67 million to increase the capacity and capability of Maori Housing Providers, and increase the Housing Supply provided by Maori service providers
• a total of just over $64 million to increase investment into housing and infrastructure projects to enable urban development, regeneration and housing outcomes
• a total of $46 million to provide for costs incurred for the facilitation, acquisition and development of land and residential properties through Kainga Ora
• a total of just over $43 million to provide advice to support decision making by Ministers on government policy matters relating to housing and urban development, and Ministerial servicing and performance monitoring
• a total of just under $24 million to maintain the supply of tenanted Community Group Housing properties
• a total of just under $22 million for managing and regulating housing and housing support providers
• a total of $10 million for expenses incurred as a result of deferred settlement agreements in land sales
• a total of just over $7 million to the delivery and evaluation of locally-driven initiatives to respond to and prevent homelessness
• a total of just under $7 million for activities associated with the facilitation of the purchase and redevelopment of land for housing purposes
• a total of $2.5 million for departmental capital expenditure by the Ministry of Housing and Urban Development
• a total of $789,000 for payments made to Kainga Ora - Homes and Communities and other mortgage providers to compensate for the difference between the cost of funds and the rate at which funds are lent, and provide write-offs for loans
• a total of $500,000 to support third party providers of social and/or affordable housing services, and
• a total of $8,000 for the administration and management of Crown owned properties held under the Housing Act 1955.

Details of these appropriations are set out in Parts 2-4.

Details of Appropriations and Capital Injections#

Annual Appropriations and Forecast Permanent Appropriations#

Multi-Year Appropriations#

Multi-Year Multi-Category Appropriations#

Total Annual Appropriations and Forecast Permanent Appropriations and Multi-Year Appropriations#

Capital Injection Authorisations#

Supporting Information#

Part 1 - Vote as a Whole#

1.1 - New Policy Initiatives#

1.2 - Trends in the Vote#

Summary of Financial Activity

Note - where restructuring of the vote has occurred then, to the extent practicable, prior years information has been restated as if the restructuring had occurred before the beginning of the period covered. In this instance Total Appropriations for the Budgeted and Estimated Actual year may not equal Total Annual Appropriations and Forecast Permanent Appropriations and Multi-Year Appropriations in the Details of Appropriations and Capital Injections.

Adjustments to the Summary of Financial Activity Table Due to Vote Restructuring

There had been no restructuring adjustments to prior year information reported in last year's Summary of Financial Activity table.

1.3 - Analysis of Significant Trends#

Operating Expenditure

The fluctuating trend for Operating Expenditure is mainly driven by:

• the implementation of the Housing Acceleration Fund from 2021/22; and
• the introduction of Kainga Ora Sustainable Funding for two years of $63 million in 2021/22 and $71 million in 2022/23.

Capital Expenditure

The fluctuating trend for Capital Expenditure is mainly driven by the implementation of the Housing Acceleration Fund from 20221/22.

Part 2 - Details of Departmental Appropriations#

2.3 - Departmental Capital Expenditure and Capital Injections#

Ministry of Housing and Urban Development - Capital Expenditure PLA (M37) (A22)

Scope of Appropriation

Capital Expenditure

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the implementation of the Ministry of Housing and Urban Development's capital expenditure plan.

How Performance will be Assessed and End of Year Reporting Requirements

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Ministry of Housing and Urban Development in its annual report.

Reasons for Change in Appropriation

The decrease in this appropriation of $2.600 million for 2021/22 reflects the major completion of consolidation of office accommodation for the Ministry.

Capital Injections and Movements in Departmental Net Assets

Ministry of Housing and Urban Development

Part 3 - Details of Non-Departmental Appropriations#

3.1 - Non-Departmental Output Expenses#

He Kuku Ki Te Kainga - Increasing Maori Housing Supply (M37) (A22)

Scope of Appropriation

Expenses

What is Intended to be Achieved with this Appropriation

This appropriation is intended to increase the Housing Supply provided by Maori service providers.

How Performance will be Assessed and End of Year Reporting Requirements

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Ministry of Housing and Urban Development in its annual report.

Current and Past Policy Initiatives

Service Providers

Reasons for Change in Appropriation

The increase in this appropriation for 2021/22 is due to new funding for investing in Maori Housing through the delivery of new housing and repairs to existing housing stock.

This is offset by a decrease in one-off funding in 2021/22 used as part of the Homelessness Action Plan to prevent and reduce homelessness.

He Taupae - Building Maori housing capability across the Maori housing continuum (M37) (A22)

Scope of Appropriation

Expenses

What is Intended to be Achieved with this Appropriation

This appropriation is intended to increase the capability of Maori housing providers to deliver targeted Maori housing solutions across the housing continuum.

End of Year Performance Reporting

Service Providers

Current and Past Policy Initiatives

Reasons for Change in Appropriation

The increase in this appropriation for 2021/22 is due to new funding for investing in Maori Housing through the delivery of new housing and repairs to existing housing stock.

He Taupua - Increasing Maori Housing Provider Capability (M37) (A22)

Scope of Appropriation

Expenses

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve an increase in the capacity of Maori Housing Providers to contribute to homelessness prevention.

How Performance will be Assessed and End of Year Reporting Requirements

Current and Past Policy Initiatives

Service Providers

Reasons for Change in Appropriation

The increase in this appropriation for 2021/22 is due to new funding for investing in Maori Housing through the delivery of new housing and repairs to existing housing stock.

This is offset by a decrease in one-off funding in 2021/22 used as part of the Homelessness Action Plan to prevent and reduce homelessness.

Infrastructure Investment to Progress Urban Development (M37) (A22)

Scope of Appropriation and Expenses

What is Intended to be Achieved with this Appropriation

This appropriation is intended to increase investment into housing and infrastructure projects to enable urban development, regeneration and housing outcomes.

How Performance will be Assessed and End of Year Reporting Requirements

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Minister of Housing in the Vote Housing and Urban Development Non-Departmental Appropriations report.

Current and Past Policy Initiatives

Service Providers

Kainga Ora - Homes and Communities is the sole service provider for 2020/21. Additional service providers will be added during the 2021/22 year.

Reasons for Change in Appropriation

The increase in this appropriation for 2021/22 is due to the progression in the delivery of shovel-ready projects.

Kainga Ora - Homes and Communities (M37) (A22)

Scope of Appropriation

Expenses

What is Intended to be Achieved with this Appropriation

This appropriation is intended to facilitate the delivery of services by Kainga Ora - Homes and Communities that contribute to housing and urban development activity.

How Performance will be Assessed and End of Year Reporting Requirements

End of Year Performance Reporting

Performance information for this appropriation will be reported by Kainga Ora in its annual report.

Current and Past Policy Initiatives

Reasons for Change in Appropriation

The increase in this appropriation of $41.776 million for 2021/22 is due to new funding of $62.540 million for Kainga Ora to fund a sustainable baseline.

This is offset by the following one-off funding that will end in 2020/21:

• a fiscally neutral transfer of $9.224 million was provided from the KiwiBuild Housing MYA to enable Kainga Ora to establish their Urban Development functions and incur related overhead costs
• a fiscally neutral transfer of $4.890 million was provided from the KiwiBuild Unit appropriation to recognise the transfer of remaining KiwiBuild related funding in this appropriation
• an expense transfer of $3.450 million from the 2019/20 year for investigating and undertaking due diligence of potential new urban development projects
• a fiscally neutral transfer of $2.400 million was provided from the Managing the Housing and Urban Development Portfolio MCA to cover establishment and administration costs to deliver PHO products
• an expense transfer of $550,000 from the 2019/20 year for establishing closer working relationships with Maori, and
• an expense transfer of $250,000 from the 2019/20 year to cover administrative costs relating to the governance of Western Porirua.

KiwiBuild Housing (M37) (A22)

Scope of Appropriation and Expenses

Components of the Appropriation

What is Intended to be Achieved with this Appropriation

This appropriation is intended to facilitate the development of KiwiBuild affordable homes.

How Performance will be Assessed and End of Year Reporting Requirements

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Minister of Housing in the Vote Housing and Urban Development Non-Departmental Appropriations Report.

Current and Past Policy Initiatives

Service Providers

Local Innovations and Partnerships (M37) (A22)

Scope of Appropriation

Expenses

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the delivery and evaluation of locally-driven initiatives to respond to and prevent homelessness.

How Performance will be Assessed and End of Year Reporting Requirements

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Ministry of Housing and Urban Development in its annual report.

Current and Past Policy Initiatives

Service Providers

Reasons for Change in Appropriation

The increase in this appropriation for 2021/22 is due to a change one-off expense transfer from 2020/21 to 2021/22 and 2022/23 financial years to align funding with the eventual cash disbursement to applicants.

Management of Crown Properties held under the Housing Act 1955 (M37) (A22)

Scope of Appropriation

Expenses

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the effective and efficient administration and management of properties held under the Housing Act 1955.

How Performance will be Assessed and End of Year Reporting Requirements

An exemption was granted under s15D(2)(b)(iii) of the Public Finance Act 1989 as the amount of this annual appropriation for a non-departmental output expense is less than $5 million.

Current and Past Policy Initiatives

Service Providers

Kainga Ora - Homes and Communities is the sole service provider.

Conditions on Use of Appropriation

Residential Development Supply (M37) (A22)

Scope of Appropriation and Expenses

What is Intended to be Achieved with this Appropriation

This appropriation is intended to support construction sector activity, capacity and capability and increase housing supply.

How Performance will be Assessed and End of Year Reporting Requirements

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Minister of Housing in the Vote Housing and Urban Development Non-Departmental Appropriations report.

Current and Past Policy Initiatives

Support Services to increase home ownership (M37) (A22)

Scope of Appropriation

Expenses

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the delivery of support services for applications to progressive home ownership schemes.

End of Year Performance Reporting

An exemption was granted under s15D(2)(b)(iii) of the Public Finance Act 1989 as the amount of the annual appropriation for a non-departmental output expense is less than $5 million.

Current and Past Policy Initiatives

Service Providers

Reasons for Change in Appropriation

The decrease in this appropriation for 2021/22 is due to one-off start-up costs in 2020/21 for wraparound support services as part of the Progressive Home Ownership Programme.

3.2 - Non-Departmental Benefits or Related Expenses#

First Home Grants (M37) (A22)

Scope of Appropriation

Expenses

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve improved access to home ownership.

How Performance will be Assessed and End of Year Reporting Requirements

An exemption was granted under s15D(2)(b)(ii) of the Public Finance Act 1989, as additional performance information is unlikely to be informative because this appropriation is solely for payments of the First Home grant under the KiwiSaver Act 2006.

Current and Past Policy Initiatives

Reasons for Change in Appropriation

The increase in this appropriation of $12.600 million for 2021/22 is due to new funding of $12.300 million to increase access for First Home Grants, and an increase of $300,000 from the repurposing of initial underspends from the Government Build Programme.

3.4 - Non-Departmental Other Expenses#

Housing Assistance (M37) (A22)

Scope of Appropriation

Expenses

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve safe, healthy and affordable homes by providing financial assistance to Kainga Ora - Homes and Communities and other mortgage providers.

How Performance will be Assessed and End of Year Reporting Requirements

An exemption was granted under s15D(2)(b)(iii) of the Public Finance Act 1989 as the amount of this annual appropriation for a non-departmental other expense is less than $5 million.

Current and Past Policy Initiatives

Service Providers

Kainga Ora - Homes and Communities are the sole service provider.

Housing Infrastructure Fund - Fair Value Write Down (M37) (A22)

Scope of Appropriation and Expenses

What is Intended to be Achieved with this Appropriation

This appropriation is intended to enable council infrastructure (storm water, potable water, wastewater and transport) to be developed and enable new houses to be built sooner.

How Performance will be Assessed and End of Year Reporting Requirements

An exemption was granted under s15D(b)(ii) of the Public Finance Act 1989 as additional performance information is unlikely to be informative because the appropriation is a technical treatment of the interest concession as it is applied to loans provided to territorial authorities under the Housing Infrastructure Fund.

Kainga Ora Land Programme (M37) (A22)

Scope of Appropriation and Expenses

What is Intended to be Achieved with this Appropriation

This appropriation is intended to provide for costs incurred for the facilitation, acquisition and development of land and residential properties through Kainga Ora.

End of Year Performance Reporting

An exemption was granted under s15D(b)(ii) of the Public Finance Act 1989 as it is unlikely to be informative due to the technical nature of the appropriation.

Current and Past Policy Initiatives

Reasons for Change in Appropriation

The increase in this appropriation for 2021/22 is due to the establishment of the Kainga Ora - Land Acquisition Fund.

Land for Housing Operations (M37) (A22)

Scope of Appropriation and Expenses

What is Intended to be Achieved with this Appropriation

This appropriation is intended to provide for costs incurred for the facilitation, acquisition and development of land for residential properties, through the Land for Housing Programme.

End of Year Performance Reporting

An exemption was granted under s15D(b)(ii) of the Public Finance Act 1989 as it is unlikely to be informative due to the technical nature of the appropriation.

Current and Past Policy Initiatives

Sale of Land and Dwellings - Costs (M37) (A22)

Scope of Appropriation

Expenses

What is Intended to be Achieved with this Appropriation

This appropriation is intended to incur expenses incurred as part of the sale of land and dwellings.

End of Year Performance Reporting

An exemption was granted under s15D(b)(ii) of the Public Finance Act 1989 as it is unlikely to be informative due to the technical nature of the appropriation.

Reasons for Change in Appropriation

The increase in this appropriation for 2021/22 of $360 million is to cover the costs of sales incurred as part of the sale of land and dwellings inventory.

Social Housing Provider Development (M37) (A22)

Scope of Appropriation

Expenses

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve safe, healthy and affordable homes by supporting third party providers of social and/or affordable housing services.

End of Year Performance Reporting

An exemption was granted under s15D(2)(b)(iii) of the Public Finance Act 1989 as the amount of the annual appropriation for a Non-Departmental Other Expense is less than $5 million.

Service Providers

Puhinui Park Limited Partnership is the sole service provider.

Reasons for Change in Appropriation

The decrease in this appropriation for 2021/22 of $734,000 is due to a one-off expense transfer from 2019/20 to 2020/21 to realign funding due to delays in the Barrowcliffe Development.

Write down and write off of Progressive Home Ownership Loans (M37) (A22)

Scope of Appropriation and Expenses

What is Intended to be Achieved with this Appropriation

This appropriation is intended to assist access to home ownership through interest and bad debt write-offs on progressive home ownership loans.

How Performance will be Assessed and End of Year Reporting Requirements

An exemption was granted under s15D(b)(ii) of the Public Finance Act 1989 as additional performance information is unlikely to be informative because the appropriation is a technical treatment of the interest concession as it is applied to Progressive Home Ownership loans.

Current and Past Policy Initiatives

3.5 - Non-Departmental Capital Expenditure#

Housing Infrastructure Fund Loans (M37) (A22)

Scope of Appropriation and Expenses

What is Intended to be Achieved with this Appropriation

This appropriation is intended to enable council infrastructure (storm water, potable water, wastewater and transport) to be developed, and to enable new houses to be built sooner.

How Performance will be Assessed and End of Year Reporting Requirements

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Minister of Housing in the Vote Housing and Urban Development Non-Departmental Appropriations report.

Kainga Ora - Homes and Communities Standby Credit Facility (M37) (A22)

Scope of Appropriation and Expenses

What is Intended to be Achieved with this Appropriation

This appropriation is intended to facilitate credit to assist with short term liquidity requirements if Kainga Ora is not able to raise wholesale funding.

How Performance will be Assessed and End of Year Reporting Requirements

An exemption was granted under s15D(b)(ii) of the Public Finance Act 1989 as additional performance information is unlikely to be informative because the appropriation is solely for the purpose of providing credit to Kainga Ora - Homes and Communities.

Current and Past Policy Initiatives

Land for Housing - Deferred Settlements (M37) (A22)

Scope of Appropriation

Capital Expenditure

What is Intended to be Achieved with this Appropriation

This appropriation is intended to provide for expenses incurred as a result of deferred settlement agreements associated with land sales.

End of Year Performance Reporting

An exemption was granted under s15D(b)(ii) of the Public Finance Act 1989 as additional performance information is unlikely to be informative because the appropriation was created for the sole purpose of facilitating lending under section 65 of the Public Finance Act 1989.

Reasons for Change in Appropriation

The decrease in this appropriation for 2021/22 is based on less demand from developers for deferred settlement terms.

Progressive Home Ownership Fund (M37) (A22)

Scope of Appropriation and Expenses

What is Intended to be Achieved with this Appropriation

This appropriation is intended to assist access to home ownership through progressive home ownership schemes.

How Performance will be Assessed and End of Year Reporting Requirements

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Minister of Housing in the Vote Housing and Urban Development Non-Departmental Appropriations Report.

Current and Past Policy Initiatives

Part 4 - Details of Multi-Category Expenses and Capital Expenditure#

Multi-Category Expenses and Capital Expenditure#

Community Group Housing (M37) (A22)

Overarching Purpose Statement

Scope of Appropriation

Expenses, Revenue and Capital Expenditure

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve safe, healthy and affordable homes by supporting third party providers of social and/or affordable housing services.

How Performance will be Assessed for this Appropriation

The performance will be assessed by Kainga Ora's support to community group providers by making available up to 1,500 community group housing properties and related housing services.

What is Intended to be Achieved with each Category and How Performance will be Assessed

Service Providers for the Multi-Category Appropriation

Kainga Ora - Homes and Communities is the sole service provider.

End of Year Performance Reporting

Performance information for this appropriation will be reported by Kainga Ora in its annual report.

Current and Past Policy Initiatives

Housing Acceleration Fund (M37) (A22)

Scope of Appropriation, Expenses and Capital Expenditure

What is Intended to be Achieved with this Appropriation

This appropriation is intended to increase housing supply and improve affordability for first home buyers and renters.

How Performance will be Assessed for this Appropriation

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Ministry of Housing and Urban Development in its annual report.

Current and Past Policy Initiatives

Reasons for Change in Appropriation

The increase in this appropriation for 2021/22 is due to the establishment of the Housing Acceleration Fund.

Managing the Housing and Urban Development Portfolio (M37) (A22)

Overarching Purpose Statement

Scope of Appropriation

Expenses, Revenue and Capital Expenditure

What is Intended to be Achieved with this Appropriation

This appropriation is intended to improve the functioning of the housing sector through effective departmental operations.

How Performance will be Assessed for this Appropriation

Note 1 - The satisfaction survey rating measures Ministers' overall satisfaction with the management of the Housing and Urban Development Portfolio on a scale of 1-10, where 1 means unsatisfied and 10 means extremely satisfied.

What is Intended to be Achieved with each Category and How Performance will be Assessed

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Ministry of Housing and Urban Development in its annual report.

Current and Past Policy Initiatives

Reasons for Change in Appropriation

Facilitating the Purchase and Redevelopment of Land for Housing Purposes category

The increase in this category for 2021/22 is due to an increase of $4 million for 2021/22 was provided via fiscally neutral adjustment from the KiwiBuild Housing MYA to cover the departmental professional services costs associated with the acquisition and development of land through the Land for Housing programme.

This is offset by:

• a one-off increase of $2.500 million for 2020/21 was provided from the KiwiBuild Unit appropriation to recognise the transfer of remaining KiwiBuild related funding in this appropriation, and
• a one-off increase of $4,000 for 2020/21 funded by other revenue from a landlord contribution towards the construction and fit-out of its new organisation-wide premises at 7 Waterloo Quay, Wellington.

Management of Housing Provision and Services category

The decrease in this category for 2021/22 is due to:

• a one-off increase of $975,000 for 2020/21 provided from Vote Finance to continue the work on the regeneration of public housing in Porirua in conjunction with an agreement with Ngati Toa
• an expense transfer of $854,000 from 2019/20 to 2020/21 to ensure that an updated Property and Provider Maintenance system can be designed and implemented
• a decrease of $248,000 in 2021/22 of standard baseline funding for operations
• a one-off increase of $219,000 for 2020/21 funded by departmental revenue to cover the additional cost of departmental secondments, and
• a one-off increase of $49,000 for 2020/21 funded by other revenue from a landlord contribution towards the construction and fit-out of its new organisation-wide premises at 7 Waterloo Quay, Wellington.

This is offset by additional funding of $100,000 for 2021/22 for the delivery of the re-designed Sustaining Tenancies programme at an accelerated rate.

Policy Advice and Ministerial Servicing category

The increase in this category for 2021/22 is due to:

• an increase of $6 million for 2021/22 for new funding for monitoring costs associated with the Housing Acceleration Fund
• an increase of $2.400 million due to a one-off decrease in 2020/21 due to a fiscally neutral adjustment to the Kainga Ora - Homes and Communities appropriation to cover establishment and administration costs to deliver PHO products, and
• an increase of $200,000 for 2021/22 due to a one-off fiscally neutral adjustment in 2020/21 to Vote Finance for the monitoring of Government support packages.

This is offset by:

• a one-off increase of $2.085 million for 2020/21 for costs associated with the WAI2750 inquiry
• a decrease of $2 million for 2021/22 due to one-off establishment costs for the Progressive Home Ownership programme in 2020/21
• a decrease of $652,000 in 2021/22 of standard baseline funding for operations
• an expense transfer of $500,000 from 2019/20 to 2020/21 for establishment costs for the Progressive Home Ownership Pilot
• a one-off increase of $387,000 for 2020/21 funded by departmental revenue to cover the additional cost of departmental secondments
• an expense transfer of $258,000 from 2019/20 to 2020/21 to ensure that an updated Property and Provider Maintenance system can be designed and implemented, and
• a one-off increase of $67,000 for 2020/21 funded by other revenue from a landlord contribution towards the construction and fit-out of its new organisation-wide premises at 7 Waterloo Quay, Wellington.

Public Housing (M37) (A22)

Overarching Purpose Statement

Scope of Appropriation

Expenses, Revenue and Capital Expenditure

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve better access to public housing places by providing payments to secure access to properties for public housing providers and the purchase of public housing provision.

How Performance will be Assessed for this Appropriation

The total number of public housing places (see Note 1) provided by all public housing providers will be at least 75,500.

Note 1 - A public housing place is defined for this purpose as a property that is available for a tenant who may be eligible for the Income Related Rent Subsidy (IRRS), and includes:

• any house provided by Kainga Ora - Homes and Communities (Kainga Ora) (excluding community group housing, but including IRRS tenancies, market rent tenancies, and vacant properties), and
• or an IRRS tenancy or market rent tenancy provided by a registered Community Housing Provider (CHP).

What is Intended to be Achieved with each Category and How Performance will be Assessed

Note 1 - Under executed service agreement between the Provider and the Ministry of Housing and Urban Development.

Note 2 - Individuals, couples and/or families/whanau who:

• are homeless for longer than 12 months, or
• have experienced four episodes of homelessness or more within the last three years where the combined duration of these episodes equals 12 months or more, and where these episodes were separated by periods of seven or more days of non-homelessness.

Note 3 - Secure and stable accommodation is defined as long-term stable accommodation that is likely to last at least six months (public or private housing).

Note 4 - Sustaining Tenancies works to prevent homelessness by funding community-based services to support individuals, families and whanau who need help to sustain their tenancy and address issues putting their tenancy at risk.

Note 5 - Individuals, couples and/or families/whanau who have recently experienced homelessness or are experiencing homelessness.

Note 6 - Rapid Rehousing is an intervention to support individuals, families and whanau to quickly exit homelessness, return to permanent housing in the community and maintain their tenancies to avoid a return to homelessness.

Service Providers for the Multi-Category Appropriation

The table above shows the significant service providers for this appropriation and the 2020/21 final budgeted figure reflects the annual contracted amount.

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Ministry of Housing and Urban Development in its annual report.

Current and Past Policy Initiatives

Reasons for Change in Appropriation

Purchase of Public Housing Provision category

The increase in this category for 2021/22 is due to:

• an increase of $108.831 million based on demand driven forecasts related to Income Related Rent Subsidies
• additional funding of $4.569 million for additional public housing supply to support refugee housing needs, and
• additional funding of $3.310 million for preventing and reducing homelessness in New Zealand.

This is offset by:

• a decrease of $19.913 million for income related rent subsidies due to increases in main benefit rates for eligible recipients
• a decrease of $11 million for income related rent subsidies due to a one-off increase in 2020/21 to meet increased demand for rent subsidies, and
• a decrease of $876,000 for income related rent subsidies due to an increase in abatement thresholds for recipients of main benefits.

Services for People in Need of or at risk of Needing Public Housing category

The increase in this category for 2021/22 is due to:

• additional funding of $21.955 million for the extension of short-term housing and associated programmes
• an increase of $3.690 million from a one-off expense transfer from 2020/21 to 2021/22 to meet forecast demand for the sustaining tenancies programme
• additional funding of $743,000 to meet forecast demand for support services, and
• additional funding of $500,000 for accelerating the sustaining tenancies expansion in response to COVID-19.

This is offset by:

• a decrease of $8.430 million from one-off expense transfers from 2019/20 to 2020/21 for realignment of scheduled deliverables and associated payments for the Housing First initiative, and
• a decrease of $840,000 due to a one-off expense transfer from 2019/20 to 2020/21 for the preventing and reducing homelessness programme.

Services Related to the Provision of Public Housing category

• a decrease of $247,000 for 2021/22 is due to prior agreed initiative funding for this appropriation.

Support for the Provision of Public Housing Supply category

• a decrease of $19.370 million for 2021/22 is due to forecasting adjustments associated with a change to previous technical accounting treatment of prepayments.

Transitional Housing (M37) (A22)

Overarching Purpose Statement

Scope of Appropriation

Expenses, Revenue and Capital Expenditure

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve better outcomes for vulnerable households through the provision of transitional housing and associated support services.

How Performance will be Assessed for this Appropriation

Performance will be assessed by providing and maintaining at least 5,400 transitional housing places and associated support services (where applicable).

What is Intended to be Achieved with each Category and How Performance will be Assessed

Note 1 - Places can house either individuals or family units. The term 'place' is used to describe the unit of housing that meets the need of a household (be it an individual or a family).

Note 2 - The intention of transitional housing is to provide housing and support to vulnerable households, and support to transition to long-term housing. The specific nature of the support and intensity of this support, for each household, will vary according to the characteristics and needs of the households.

Service Providers for the Multi-Category Appropriation

The table above shows the significant service providers for this appropriation and the 2020/21 final budgeted figure reflects the annual contracted amount.

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Ministry of Housing and Urban Development in its annual report.

Current and Past Policy Initiatives

Reasons for Change in Appropriation

The decrease in this appropriation of $72.795 million for 2021/22 is due to a decrease in capital expenditure of $63.593 million, as well as a decrease of $41.902 million to increase Transitional Housing supply which included one-off expenses in 2020/21.

This is offset by an increase of $32.700 million for 2021/22 due to additional funding for the extension and short-term housing and associated programmes.