Formats and related files
MINISTER(S) RESPONSIBLE FOR APPROPRIATIONS: Minister for Building and Construction (M9), Minister of Housing (M37)
ADMINISTERING DEPARTMENT: Department of Building and Housing
MINISTER RESPONSIBLE FOR DEPARTMENT OF BUILDING AND HOUSING: Minister for Building and Construction
Overview of the Vote#
The Minister for Building and Construction is responsible for appropriations in the Vote for the 2010/11 financial year covering the following:
- A Multi-year Appropriation (MYA) was established from 1 July 2010 to provide for flexibility in planning on delivering regulatory and control services for the building industry under the Building Act 2004 and related consumer information. A total of just under $47 million has been appropriated for a three year period. It is expected that just under $17 million will be spent in 2010/11, leaving a balance of $30 million for the remainder of the three year period.
- A Multi-year Appropriation (MYA) was established from 1 July 2010 to provide for flexibility in planning on developing, implementing and maintaining registration and licensing regimes for building practitioners and electrical workers. A total of just over $27 million has been appropriated for a three year period. It is expected that just over $9 million will be spent in 2010/11, leaving a balance of $18 million for the remainder of the three year period.
- A total of just over $4 million on providing sector and regulatory policy advice on the building and housing sector in New Zealand.
- A total of just under $41 million on providing assessment and dispute resolution services under the Weathertight Homes Resolution Services Act 2006.
- A total of just under $7 million on departmental capital expenditure.
The Minister of Housing is responsible for appropriations in the Vote for the 2010/11 financial year covering the following:
- A Multi-year Appropriation (MYA) was established from 1 July 2010 to provide for flexibility in planning on providing services under the Residential Tenancies Act 1986, including advice and guidance, dispute resolution and the administration of residential tenancy bond monies. A total of just under $67 million has been appropriated for a three year period. It is expected that just under $22 million will be spent in 2010/11, leaving a balance of $45 million for the remainder of the three year period.
- A total of just under $1 million on providing purchase and performance monitoring advice to Government in relation to Housing New Zealand Corporation (HNZC).
- A total of just over $11 million on purchasing housing support services.
- A total of just under $3 million on the purchase of housing policy advice from Housing New Zealand Corporation.
- A total of just over $1 million for the management of Crown owned properties.
- A total of just over $7 million on contracted housing support services.
- A total of just under $1 million on housing assistance payments.
- A total of just under $559 million on purchasing of housing and related services for tenants paying income related rent to Housing New Zealand Corporation.
- A total of just over $4 million on KiwiSaver deposit subsidy.
- A total of just under $4 million on the community housing rent relief programme.
- A total of just over $3 million on increase in provision for doubtful debts on IRR Debt.
- A total of just over $37 million for Wellington City Council Social Housing Assistance.
- A total of $8 million on Housing Innovation Fund Grants.
- A total of $4 million for the impairment of Housing Innovation Fund Term Loans.
- A total of just over $201 million on capital expenditure, which includes debt refinancing of just under $161 million.
Details of these appropriations are set out in Parts 2-6 for Vote Housing in the Information Supporting the Estimates of Appropriations.
Details of Appropriations#
Details of Annual and Permanent Appropriations
| 2009/10 | 2010/11 | ||
|---|---|---|---|
| Titles and Scopes of Appropriations by Appropriation Type | Budgeted $000 |
Estimated Actual $000 |
Budget $000 |
Departmental Output Expenses |
|||
Performance Monitoring and Advice - Housing New Zealand Corporation (M37)This appropriation is limited to the provision of advice to Ministers arising from the monitoring of Housing New Zealand Corporation's current and expected performance. |
1,391 | 1,391 | 641 |
Sector and Regulatory Policy (M9)This appropriation is limited to the provision of policy advice on the adequacy, efficiency and effectiveness of the building and housing sector in New Zealand; advice on the regulatory framework for the sector; monitoring, analysing and providing information on the sector; and evaluating the effectiveness of the sector and statutory boards. |
4,737 | 4,737 | 4,163 |
Weathertight Homes Resolution Service (M9)This appropriation is limited to assessing the eligibility of weathertight homes claims; independent technical assessment of claims; claim management until resolution and the provision of dispute resolution services. |
15,275 | 15,275 | 40,559 |
Building Regulation and Control (M9)This appropriation is limited to activities associated with the setting of performance standards for buildings and the design and delivery of regulatory schemes and other initiatives to help ensure those standards are met. |
16,560 | 16,310 | - |
Occupational Licensing (M9)This appropriation is limited to the development, implementation and maintenance of the registration and licensing regimes for building practitioners and electrical workers. |
8,158 | 8,158 | - |
Residential Tenancy and Unit Title Services (M37)This appropriation is limited to the provision of residential tenancy and unit title dispute resolution services, information, education, and advice; administration and investment of residential tenancy bond monies; provision of administrative support to the State Housing Appeals Authority. |
22,222 | 22,222 | - |
Total Departmental Output Expenses |
68,343 | 68,093 | 45,363 |
Non-Departmental Output Expenses |
|||
Contracted Housing Support Services (M37)This appropriation is limited to the purchase of education, support and other services from third-party and iwi providers, by Housing New Zealand Corporation, to support target groups into improved housing outcomes. |
10,166 | 10,166 | 7,400 |
HNZC Housing Support Services (M37)This appropriation is limited to the purchase of housing related services from Housing New Zealand Corporation including home ownership initiatives, the Housing Innovation Fund and Healthy Housing. |
14,993 | 14,993 | 11,484 |
Housing Policy Advice (M37)Purchase of housing policy advice, research and evaluation from HNZC. |
2,640 | 2,640 | 2,558 |
Management of Crown Properties held under the Housing Act 1955 (M37)This appropriation is limited to the administration and management of Crown owned properties held under the Housing Act 1955. |
1,296 | 1,296 | 1,288 |
Purchase of Housing and Related Services for Tenants Paying Income Related Rent (M37)This appropriation is limited to the purchase of housing and related services delivered by Housing New Zealand Corporation to individuals who are eligible for an income related rent, assessed as the difference in price between the amounts of market rents for the housing provided by the Corporation and the income related rents charged. |
- | - | 558,566 |
HNZC State House Upgrades (M37)This appropriation is limited to the upgrading of Housing New Zealand Corporation State Houses to improve the safety, security, function and amenity value to a standard suitable for social housing purposes. |
20,000 | 20,000 | - |
Total Non-Departmental Output Expenses |
49,095 | 49,095 | 581,296 |
Benefits and Other Unrequited Expenses |
|||
Housing Assistance (M37)Payments made to HNZC and other mortgage providers to compensate for the difference between the cost of funds and rate at which funds are lent and provide write-offs for loans. |
815 | 815 | 590 |
KiwiSaver Deposit Subsidy (M37)To enable the provision of the KiwiSaver deposit subsidy for people who meet the required eligibility criteria. |
- | - | 4,200 |
Income Related Rental Subsidy (M37)Subsidy provided to HNZC to compensate for the difference between assessed income-related and market rentals. |
527,851 | 527,851 | - |
Total Benefits and Other Unrequited Expenses |
528,666 | 528,666 | 4,790 |
Non-Departmental Other Expenses |
|||
Community Housing Rent Relief Programme (M37)This appropriation is limited to provision of a rent relief fund for service provider tenants of Community Group Housing properties who face difficulties in meeting rental payments. |
3,800 | 3,800 | 3,968 |
Housing Innovation Fund Grants (M37)This appropriation is limited to the provision of grants directly to housing providers and grants facilitated through Housing New Zealand Corporation to increase the supply of housing for those on low to moderate income with diverse needs. |
8,700 | 8,700 | 8,000 |
Housing Innovation Fund Loan Impairments (M37)This appropriation is limited to the impairment of term loans made directly to housing providers and term loans facilitated through equity in Housing New Zealand Corporation to increase the supply of housing for those on low to moderate income with diverse needs. |
5,535 | 5,535 | 4,000 |
Increase in Debt Provision (M37)Increase in provision for doubtful debts on Income Related Rents Crown Debt. |
4,225 | 4,225 | 3,279 |
Wellington City Council Social Housing Assistance (M37)This appropriation is limited to assisting the Wellington City Council upgrade its social housing portfolio under the terms of a Deed of Grant entered into between the Crown, Housing New Zealand Corporation and the Council. |
13,500 | 13,500 | 37,500 |
Total Non-Departmental Other Expenses |
35,760 | 35,760 | 56,747 |
Departmental Capital Expenditure |
|||
Department of Building and Housing - Capital Expenditure PLA (M9)This appropriation is limited to the purchase or development of assets by and for the use of the Department of Building and Housing, as authorised by section 24(1) of the Public Finance Act 1989. |
5,526 | 5,526 | 6,503 |
Total Departmental Capital Expenditure |
5,526 | 5,526 | 6,503 |
Non-Departmental Capital Expenditure |
|||
Acquisition and Development of properties under the Housing Act 1955 (M37)This appropriation is limited to acquiring, developing and modernising properties under the Housing Act 1955. |
20,301 | 20,301 | 14,548 |
Acquisition and Improvement of Housing New Zealand Corporation state houses (M37)This appropriation is limited to debt or equity in Housing New Zealand Corporation to acquire, modernise or reconfigure Housing New Zealand Corporation state houses. |
120,610 | 120,610 | 18,000 |
Capital Injections to Housing New Zealand Corporation for Housing Activities (M37)Capital injections (debt or equity) to HNZC to give effect to Government policy decisions around stock acquisition, modernisation and other housing interventions. |
620 | 620 | 27 |
Loans to support Social and Affordable Housing (M37)This appropriation is limited to the provision of term loans made directly to housing providers and term loans facilitated through equity in Housing New Zealand Corporation to increase the supply of housing for those on low to moderate income with diverse needs. |
11,300 | 11,300 | 8,000 |
Refinancing of Housing New Zealand Corporation and Housing New Zealand Limited Debt (M37)This appropriation is limited to refinancing existing Housing New Zealand Corporation and Housing New Zealand Limited debt. |
234,642 | 234,642 | 160,757 |
Loans to support Homeownership (M37)This appropriation is limited to debt or equity in Housing New Zealand Corporation to provide loans to households to help them achieve or sustain home ownership. |
700 | 700 | - |
Total Non-Departmental Capital Expenditure |
388,173 | 388,173 | 201,332 |
Total Annual and Permanent Appropriations |
1,075,563 | 1,075,313 | 896,031 |
Details of Multi-Year Appropriations#
| Type, Title, Scope and Period of Appropriations | Appropriations, Adjustments and Use | $000 |
|---|---|---|
Departmental Output Expenses |
||
Building Regulation and Control (M9)This appropriation is limited to activities associated with the setting of performance standards for buildings and the design and delivery of regulatory schemes and other initiatives to help ensure those standards are met. Commences: 1 July 2010 Expires: 30 June 2013 |
Original Appropriation | 46,898 |
| Adjustments for 2008/09 | - | |
| Adjustments to 2009/10 | - | |
| Adjusted Appropriation | 46,898 | |
| Actual to 2008/09 Year End | - | |
| Estimated Actual for 2009/10 | - | |
| Estimated Actual for 2010/11 | 16,771 | |
| Estimated Appropriation Remaining | 30,127 | |
Occupational Licensing (M9)This appropriation is limited to the development, implementation and maintenance of the registration and licensing regimes for building practitioners and electrical workers. Commences: 1 July 2010 Expires: 30 June 2013 |
Original Appropriation | 27,341 |
| Adjustments for 2008/09 | - | |
| Adjustments to 2009/10 | - | |
| Adjusted Appropriation | 27,341 | |
| Actual to 2008/09 Year End | - | |
| Estimated Actual for 2009/10 | - | |
| Estimated Actual for 2010/11 | 9,384 | |
| Estimated Appropriation Remaining | 17,957 | |
Residential Tenancy and Unit Title Services (M37)This appropriation is limited to the provision of residential tenancy and unit title dispute resolution services, information, education, and advice; administration and investment of residential tenancy bond monies; provision of administrative support to the State Housing Appeals Authority. Commences: 1 July 2010 Expires: 30 June 2013 |
Original Appropriation | 66,550 |
| Adjustments for 2008/09 | - | |
| Adjustments to 2009/10 | - | |
| Adjusted Appropriation | 66,550 | |
| Actual to 2008/09 Year End | - | |
| Estimated Actual for 2009/10 | - | |
| Estimated Actual for 2010/11 | 21,894 | |
| Estimated Appropriation Remaining | 44,656 |
Details of Projected Movements in Departmental
Net Assets#
Department of Building and Housing
| Details of Net Asset Schedule | 2009/10 Estimated Actual $000 |
2010/11 Projected $000 |
Explanation of Projected Movements in 2010/11 |
|---|---|---|---|
| Opening Balance | 17,272 | 17,897 | |
| Capital Injections | 2,689 | 6,100 | To fund a projected deficit in the Occupational Licensing: Building Practitioners memorandum account ($725,000), the National Multi Use Approvals memorandum account ($50,000) and the Electrical Workers Registration memorandum account ($3.500 million). |
| Capital Withdrawals | - | - | |
| Surplus to be Retained (Deficit Incurred) | (2,064) | (4,275) | Repayment of capital injections as part of surplus calculation. |
| Other Movements | - | - | |
Closing Balance |
17,897 | 19,722 |