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 2011/12 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 $50 million has been appropriated for a three year period. It is expected that just over $16 million will be spent in 2011/12, leaving a balance of just under $16 million for the remaining year within the three year MYA.
- 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 under $10 million will be spent in 2011/12, leaving a balance of just under $9 million for the remaining year within the three year MYA.
- A total of just under $8 million on providing policy advice on the building and housing sector in New Zealand.
- A total of just under $53 million on providing assessment and dispute resolution services under the Weathertight Homes Resolution Services Act 2006 and the administration of the financial assistance package. A total of just over $1 million on unwinding the discount rate for the net present value calculation of the direct payments contributions and the payments under the loan guarantees.
- A Multi-year Appropriation (MYA) was established from 1 July 2010 to provide for flexibility in planning on expensing the guarantee fee subsidy under the Weathertight Services loan guarantee scheme. A total of just over $13 million has been appropriated for a five year period. It is expected that just under $1 million will be spent in 2011/12, leaving a balance of just under $13 million in total for the remainder of the five year period.
- A total of just over $4 million on departmental capital expenditure.
The Minister of Housing is responsible for appropriations in the Vote for the 2011/12 financial year covering the following:
- A total of just over $3 million arranging and managing Canterbury earthquake temporary accommodation response and just under $10 million for operating costs associated with running the scheme.
- 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 over $67 million has been appropriated for a three year period. It is expected that just over $22 million will be spent in 2011/12, leaving a balance of just under $24 million for the remaining year within the three year MYA.
- A total of just under $1 million on providing purchase and performance monitoring advice to Government in relation to social housing.
- A total of just over $2 million on contracted housing support services.
- A total of just over $15 million on purchasing housing support services.
- A total of just over $1 million for the management of Crown owned properties.
- A total of just over $587 million on purchasing of housing and related services for tenants paying income related rent to Housing New Zealand Corporation.
- A total of just under $2 million on housing assistance payments.
- A total of just over $5 million on KiwiSaver deposit subsidy.
- A total of just over $4 million on the community housing rent relief programme.
- A total of $5 million on the provision for doubtful debts on Income Related Rent Debt.
- A total of just over $43 million for Wellington City Council Social Housing Assistance.
- A total of just under $204 million on capital expenditure, which includes debt refinancing of just over $175 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
| 2010/11 | 2011/12 | ||
|---|---|---|---|
| Titles and Scopes of Appropriations by Appropriation Type | Budgeted $000 | Estimated Actual $000 | Budget $000 |
Departmental Output Expenses | |||
Canterbury Earthquakes: Arranging and Managing Emergency and Temporary Accommodation (M37)This appropriation is limited to the expenses incurred in arranging and managing emergency and temporary accommodation for people displaced by the Canterbury earthquakes. | 2,207 | 2,207 | 3,154 |
Housing, Building and Construction Policy Advice (M9)This appropriation is limited to the provision of policy advice to improve the performance of the building and housing sector; develop an effective social housing market; improve the efficiency and adequacy of support for people in housing need; monitor and provide information on sector trends and outcomes, and provide advice on the membership and effectiveness of statutory boards. | - | - | 7,815 |
Performance Monitoring and Advice - Social Housing (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, and the monitoring of housing grants provided to Wellington City Council. | 641 | 641 | 794 |
Weathertight Services (M9)This appropriation is limited to assessing the eligibility of weathertight homes claims; independent technical assessment of claims, including reports on actual and probable damage with estimated costs of repair; administration of the financial assistance package; claim management until repair or claim lodged with the Weathertight Tribunal; provision of mediation services; and advice, information and education to support more informed consumer decisions. | 25,559 | 19,559 | 52,662 |
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. | 6,888 | 6,888 | - |
Total Departmental Output Expenses | 35,295 | 29,295 | 64,425 |
Non-Departmental Output Expenses | |||
Canterbury Earthquakes: Emergency and Temporary Accommodation (M37)This appropriation is limited to operating expenses incurred on emergency and temporary accommodation for people displaced by the Canterbury earthquakes. | 7,421 | 7,421 | 9,517 |
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. | 8,303 | 6,911 | 2,400 |
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. | 11,604 | 10,119 | 15,343 |
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. | 1,438 | 1,417 | 1,395 |
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 | 558,566 | 587,115 |
Canterbury Earthquake: Short Term Housing Assistance (M37)This appropriation is limited to the purchase of housing related services to provide short term assistance to individuals whose housing circumstances have been directly affected by the September 2010 earthquake in the Canterbury region. | 421 | 300 | - |
Housing Policy Advice (M37)Purchase of housing policy advice, research and evaluation from HNZC. | 2,554 | 2,554 | - |
Total Non-Departmental Output Expenses | 590,307 | 587,288 | 615,770 |
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. | 1,659 | 1,659 | 1,729 |
KiwiSaver Deposit Subsidy (M37)To enable the provision of the KiwiSaver deposit subsidy for people who meet the required eligibility criteria. | 2,100 | 2,100 | 5,200 |
Total Benefits and Other Unrequited Expenses | 3,759 | 3,759 | 6,929 |
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. | 3,968 | 3,968 | 4,150 |
Increase in Debt Provision (M37)Increase in provision for doubtful debts on Income Related Rents Crown Debt. | 5,000 | 5,000 | 5,000 |
Payments in respect of the Weathertight Services Loan Guarantees PLA (M9)This appropriation is limited to the payments to banks under the Weathertight Services Financial Assistance Package: Loan Guarantee scheme as authorised under section 65 ZG of the Public Finance Act 1989. | - | - | 30 |
Unwind of Discount Rate used in the Present Value Calculation of Direct Payments (M9)This appropriation is limited to the expense incurred in unwinding the discount rate used in the present value calculation of the liability as the liability nears settlement. | - | - | 1,100 |
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. | 37,500 | 37,500 | 43,500 |
Canterbury Earthquake: Leasing Expenses (M37)This appropriation is limited to the leasing costs for properties to assist individuals whose circumstances have been directly affected by the September 2010 earthquake in the Canterbury region. | 572 | - | - |
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. | 8,000 | 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. | 4,000 | - | - |
Weathertight Services Financial Assistance Package: Present Value of Direct Payments (M9)This appropriation is limited to the expense incurred by the Crown's contribution to owners of leaky homes eligible for the financial assistance package for agreed repair costs. | 697,000 | 697,000 | - |
Total Non-Departmental Other Expenses | 756,040 | 751,468 | 53,780 |
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. | 1,262 | 1,262 | 4,084 |
Total Departmental Capital Expenditure | 1,262 | 1,262 | 4,084 |
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. | 7,796 | 7,796 | 19,142 |
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. | 18,137 | 18,137 | 9,300 |
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. | 27 | 27 | 27 |
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. | 160,757 | 160,757 | 175,496 |
Canterbury Earthquake: Acquisition of Emergency and Temporary Accommodation (M37)This appropriation is limited to capital expenditure incurred on emergency and temporary accommodation for people displaced by the Canterbury earthquakes. | 1,622 | 1,622 | - |
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. | 8,110 | 8,110 | - |
Total Non-Departmental Capital Expenditure | 196,449 | 196,449 | 203,965 |
Total Annual and Permanent Appropriations | 1,583,112 | 1,569,521 | 948,953 |
Details of Multi-Year Appropriations#
| Type, Title, Scope and Period of Appropriations | Appropriation, 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 to 2009/10 | - | |
| Adjustments for 2010/11 | 2,965 | |
| Adjusted Appropriation | 49,863 | |
| Actual to 2009/10 Year End | - | |
| Estimated Actual for 2010/11 | 18,046 | |
| Estimated Actual for 2011/12 | 16,214 | |
| Estimated Appropriation Remaining | 15,603 | |
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 to 2009/10 | - | |
| Adjustments for 2010/11 | - | |
| Adjusted Appropriation | 27,341 | |
| Actual to 2009/10 Year End | - | |
| Estimated Actual for 2010/11 | 8,984 | |
| Estimated Actual for 2011/12 | 9,966 | |
| Estimated Appropriation Remaining | 8,391 | |
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 to 2009/10 | - | |
| Adjustments for 2010/11 | 830 | |
| Adjusted Appropriation | 67,380 | |
| Actual to 2009/10 Year End | - | |
| Estimated Actual for 2010/11 | 21,524 | |
| Estimated Actual for 2011/12 | 22,328 | |
| Estimated Appropriation Remaining | 23,528 | |
Non-Departmental Other Expenses |
||
Weathertight Services: Guarantee Fee Subsidy (M9)This appropriation is limited to the expense reflecting the guarantee fee subsidy under the Weathertight Services Financial Assistance Package: Loan Guarantee scheme Commences: 1 July 2010 Expires: 30 June 2015 |
Original Appropriation | 13,520 |
| Adjustments to 2009/10 | - | |
| Adjustments for 2010/11 | - | |
| Adjusted Appropriation | 13,520 | |
| Actual to 2009/10 Year End | - | |
| Estimated Actual for 2010/11 | 100 | |
| Estimated Actual for 2011/12 | 200 | |
| Estimated Appropriation Remaining | 13,220 |
Details of Projected Movements in Departmental
Net Assets#
Department of Building and Housing
| Details of Net Asset Schedule | 2010/11 Estimated Actual $000 | 2011/12 Projected $000 | Explanation of Projected Movements in 2011/12 |
|---|---|---|---|
| Opening Balance | 17,645 | 19,470 | |
| Capital Injections | 1,825 | - | |
| Capital Withdrawals | - | - | |
| Surplus to be Retained (Deficit Incurred) | - | - | |
| Other Movements | - | - | |
Closing Balance | 19,470 | 19,470 |