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Supplementary estimates of appropriations

Vote Housing and Urban Development - Addition to the Supplementary Estimates 2019/20

Vote Housing and Urban Development

APPROPRIATION MINISTER(S): Minister of Housing (M37)

APPROPRIATION ADMINISTRATOR: Ministry of Housing and Urban Development

RESPONSIBLE MINISTER FOR MINISTRY OF HOUSING AND URBAN DEVELOPMENT: Minister of Housing

Details of Appropriations and Capital Injections

Annual Appropriations and Forecast Permanent Appropriations

Titles and Scopes of Appropriations by Appropriation Type 2019/20
Estimates
Budget
$000
Supplementary
Estimates
Budget
$000
Addition to the
Supplementary
Estimates
Budget
$000
Cumulative
Supplementary
Estimates
Budget
$000
Total
Budget
$000
Departmental Output Expenses          

Administering the Legacy Social Housing Fund (M37)

This appropriation is limited to the administration costs of the Legacy Social Housing Fund.

600 - - - 600

Community Housing Regulatory Authority (M37)

This appropriation is limited to the administration of the Community Housing Regulatory Authority.

700 829 - 829 1,529

Consenting in Special Housing Areas (M37)

This appropriation is limited to the costs of providing resource consenting processes in Special Housing Areas where a Special Housing Area is declared outside a Housing Accord.

3,000 (3,000) - (3,000) -

Establishment of Kāinga-Ora - Homes and Communities (M37)

This appropriation is limited to the establishment of the new housing and urban development authority: Kāinga-Ora - Homes and Communities.

- 3,100 - 3,100 3,100

Facilitating the Redevelopment of Surplus Crown Land (M37)

This appropriation is limited to the activities associated with the facilitation of Crown land redevelopment.

2,503 20 - 20 2,523

KiwiBuild Unit (M37)

This appropriation is limited to the activities associated with the facilitation and implementation of the KiwiBuild Programme.

24,250 (10,749) - (10,749) 13,501

Management of Housing Places, Providers and Services (M37)

This appropriation is limited to negotiating and managing contracts with housing and housing support service providers, and administering payments for housing places and support services.

15,263 4,974 - 4,974 20,237
Total Departmental Output Expenses 46,316 (4,826) - (4,826) 41,490
Departmental Capital Expenditure          

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

This appropriation is limited to the purchase or development of assets by and for the use of the Ministry of Housing and Urban Development, as authorised by section 24(1) of the Public Finance Act 1989

400 600 - 600 1,000
Total Departmental Capital Expenditure 400 600 - 600 1,000
Non-Departmental Output Expenses          

Financial capability services to support Pacific households into home ownership (M37)

This appropriation is limited to the provision of financial capability services for Pacific Island households.

630

-

 

- - 630

He Kuku Ki Te Kāinga - Increasing Māori Housing Supply (M37)

This appropriation is limited to increasing the Housing Supply provided by Māori service providers.

- 7,000 - 7,000 7,000

He Taupua - Increasing Māori Housing Provider Capability (M37)

This appropriation is limited to increasing the capacity of Māori Housing Providers to contribute to homelessness prevention.

- 1,000 - 1,000 1,000

Housing New Zealand Corporation Support Services (M37)

This appropriation is limited to housing related services from Housing New Zealand Corporation, including home ownership initiatives and Healthy Housing.

10,698 (7,000) - (7,000) 3,698

Kāinga Ora - Homes and Communities (M37)

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

- 21,080 - 21,080 21,080

KiwiBuild Operations (M37)

This appropriation is limited to the operating expenses incurred in relation to the facilitation, acquisition and development of KiwiBuild dwellings.

- 8,446 - 8,446 8,446

Local Innovations and Partnerships (M37)

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

- 500 - 500 500

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.

8 - - - 8

Support Services to increase home ownership (M37)

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

- 1,500 - 1,500 1,500
Total Non-Departmental Output Expenses 11,336 32,526 - 32,526 43,862
Benefits or Related Expenses          

First Home Grants (M37)

This appropriation is limited to First Home Grants for people who meet the required eligibility criteria.

- 54,646 - 54,646 54,646

KiwiSaver HomeStart Grant (M37)

This appropriation is limited to KiwiSaver HomeStart grants for people who meet the required eligibility criteria.

106,120 (70,746) - (70,746) 35,374
Total Benefits or Related Expenses 106,120 (16,100) - (16,100) 90,020
Non-Departmental Other Expenses          

Housing Assistance (M37)

This appropriation is limited to payments made to Housing New Zealand Corporation 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.

789 - - - 789

Land for Housing - Deferred Settlements (M37)

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

- 16,980 - 16,980 16,980

Social Housing Provider Development (M37)

This appropriation is limited to providing support to third party providers of social and/or affordable housing services.

- 2,634 - 2,634 2,634
Total Non-Departmental Other Expenses 789 19,614 - 19,614 20,403
Multi-Category Expenses and Capital Expenditure          

Community Group Housing MCA (M37)

The single overarching purpose of this appropriation is to purchase housing services from Housing New Zealand Corporation and Community Group Housing providers to maintain the supply of tenanted Community Group Housing properties.

23,795 - - - 23,795
Non-Departmental Output Expenses          

Community Group Housing Market Rent Top-Up

This category is limited to the provision of funding to Housing New Zealand Corporation to pay the difference between the contracted rent with each Community Group Housing provider and market rent for the leased properties.

13,891 - - - 13,891
Non-Departmental Other Expenses          

Community Housing Rent Relief

This category is limited to the provision of a rent relief fund to Community Group Housing providers for the sole purpose of helping them meet their contracted rent payments.

4,104 - - - 4,104
Non-Departmental Capital Expenditure          

Acquisition and Improvement of Community Group Housing Properties

This category is limited to providing debt or equity to Housing New Zealand Corporation to acquire, modernise or reconfigure properties leased by Community Housing Providers.

5,800 - - - 5,800

Policy Advice and Related Outputs MCA (M37)

The single overarching purpose of this appropriation is to provide policy advice and other support to Ministers in discharging their policy decision-making and other portfolio responsibilities.

20,338 9,594 - 9,594 29,932
Departmental Output Expenses          

Crown Monitoring Advice

This category is limited to activity related to performance monitoring Housing New Zealand Corporation and Tamaki Redevelopment Company and governance advice to the Minister of Housing and Urban Development in respect of these agencies.

432 22 - 22 454

Policy Advice

This category is limited to advice (including second opinion advice and contributions to policy advice led by other agencies) to support decision making by Ministers on government policy matters relating to housing and urban development.

19,646 7,271 - 7,271 26,917

Related Services to Ministers

This category is limited to the provision of support, information and services to Ministers to enable them to discharge their portfolio (other than policy decision-making) responsibilities on matters relating to housing and urban development.

260 2,301 - 2,301 2,561

Public Housing MCA (M37)

The single overarching purpose of this appropriation is to secure and purchase the provision of public housing and associated support services.

1,150,597 796 (300) 496 1,151,093
Non-Departmental Output Expenses          

Purchase of Public Housing Provision

This category is limited to purchasing the provision of public housing and related services from public housing providers in accordance with reimbursement agreements or tailored agreements under the Housing Restructuring and Tenancy Matters Act 1992.

1,093,458 (1,900) (300) (2,200) 1,091,258

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

This category is limited to the provision of support services to those in need of public housing or those at risk of entering or exiting public housing.

37,965 (930) - (930) 37,035

Services Related to the Provision of Public Housing

This category is limited to the provision of services related to the provision of public housing by a public housing provider.

900 - - - 900
Non-Departmental Other Expenses          

Support for the Provision of Public Housing Supply

This category is limited to providing support to secure access to properties for public housing providers to use for public housing.

18,274 3,626 - 3,626 21,900

Transitional Housing MCA (M37)

The single overarching purpose of this appropriation is to fund the delivery of transitional housing places and services in New Zealand.

138,862 59,563 (18,400) 41,163 180,025
Non-Departmental Output Expenses          

Provision of Transitional Housing Places

This category is limited to supporting transitional housing providers to provide transitional housing places.

58,762 11,000 23,300 34,300 93,062

Transitional Housing Services

This category is limited to payments to transitional housing providers on a per household basis to cover tenancy and property management, and services to support tenants in transitional housing to move into sustainable housing.

48,363 6,000 8,300 14,300 62,663
Non-Departmental Capital Expenditure          

Acquisition, Development and Construction of Transitional Housing

This appropriation is limited to funding the acquisition, construction and development or redevelopment of land or properties for the purpose of providing transitional housing.

31,737 42,563 (50,000) (7,437) 24,300
Total Multi-Category Expenses and Capital Expenditure 1,333,592 69,953 (18,700) 51,253 1,384,845
Total Annual Appropriations and Forecast Permanent Appropriations 1,498,553 101,767 (18,700) 83,067 1,581,620

Multi-Year Appropriations

Type, Title, Scope and Period of Appropriations Appropriations, Adjustments and Use $000
Non-Departmental Output Expenses    

COVID-19 Housing Providers Operational Cost (M37)

This appropriation is limited to payments to Housing Providers for additional operational costs incurred associated with responding to COVID 19.

Commences: 30 April 2020

Expires: 30 June 2021

Original Appropriation 10,000
Adjustments to 2018/19 -
Adjustments for 2019/20 -
Adjusted Appropriation 10,000
Actual to 2018/19 Year End -
Estimated Actual for 2019/20 4,000
Estimate for 2020/21 6,000
Estimated Appropriation Remaining -

KiwiBuild Housing (M37)

This appropriation is limited to the acquisition, construction and provision of KiwiBuild dwellings.

Commences: 01 October 2018

Expires: 30 June 2022

Original Appropriation 2,039,923
Adjustments to 2018/19 -
Adjustments for 2019/20 (344,590)
Adjusted Appropriation 1,695,333
Actual to 2018/19 Year End 96,920
Estimated Actual for 2019/20 221,163
Estimate for 2020/21 194,800
Estimated Appropriation Remaining 1,182,450
Non-Departmental Other Expenses    

Housing Infrastructure Fund - Fair Value Write Down (M37)

This appropriation is limited to the expense incurred in the fair-value write down of interest-free loans from the Housing Infrastructure Fund to Territorial Local Authorities.

Commences: 01 October 2018

Expires: 30 June 2021

Original Appropriation 190,791
Adjustments to 2018/19 -
Adjustments for 2019/20 (160,791)
Adjusted Appropriation 30,000
Actual to 2018/19 Year End -
Estimated Actual for 2019/20 30,000
Estimate for 2020/21 -
Estimated Appropriation Remaining -

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

This appropriation is limited to the expense incurred in the fair-value write down of interest-free loans to suppliers of Progressive Home Ownership schemes and write-off of any potential bad debts associated with such loans.

Commences: 01 April 2020

Expires: 30 June 2024

Original Appropriation 286,755
Adjustments to 2018/19 -
Adjustments for 2019/20 -
Adjusted Appropriation 286,755
Actual to 2018/19 Year End -
Estimated Actual for 2019/20 6,969
Estimate for 2020/21 49,782
Estimated Appropriation Remaining 230,004
Non-Departmental Capital Expenditure    

Housing Infrastructure Fund Loans (M37)

This appropriation is limited to interest-free loans from the Housing Infrastructure Fund of a duration of ten years or under to Territorial Local Authorities to finance the infrastructure needed to unlock residential development.

Commences: 01 October 2018

Expires: 30 June 2023

Original Appropriation 642,824
Adjustments to 2018/19 -
Adjustments for 2019/20 (518,464)
Adjusted Appropriation 124,360
Actual to 2018/19 Year End 10,597
Estimated Actual for 2019/20 10,116
Estimate for 2020/21 103,647
Estimated Appropriation Remaining -

Kāinga Ora - Homes and Communities Standby Credit Facility (M37)

This appropriation is limited to financing of a credit facility to assist Kāinga Ora - Homes and Communities with short-term liquidity requirements in exceptional and temporary circumstances.

Commences: 01 May 2020

Expires: 30 June 2024

Original Appropriation 1,000,000
Adjustments to 2018/19 -
Adjustments for 2019/20 -
Adjusted Appropriation 1,000,000
Actual to 2018/19 Year End -
Estimated Actual for 2019/20 -
Estimate for 2020/21 -
Estimated Appropriation Remaining 1,000,000

Progressive Home Ownership Fund (M37)

This appropriation is limited to addressing housing affordability issues by assisting access to home ownership through progressive home ownership schemes.

Commences: 01 February 2020

Expires: 30 June 2024

Original Appropriation 400,000
Adjustments to 2018/19 -
Adjustments for 2019/20 -
Adjusted Appropriation 400,000
Actual to 2018/19 Year End -
Estimated Actual for 2019/20 10,000
Estimate for 2020/21 70,000
Estimated Appropriation Remaining 320,000

Vacant or Underutilised Crown Land Programme (M37)

This appropriation is limited to the Crown's contribution to the development of housing in selected locations.

Commences: 01 October 2018

Expires: 30 June 2022

Original Appropriation 55,354
Adjustments to 2018/19 -
Adjustments for 2019/20 (55,354)
Adjusted Appropriation -
Actual to 2018/19 Year End -
Estimated Actual for 2019/20 -
Estimate for 2020/21 -
Estimated Appropriation Remaining -

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

  2019/20
Estimates
Budget
$000
Supplementary
Estimates
Budget
$000
Addition to the
Supplementary
Estimates
Budget
$000
Cumulative
Supplementary
Estimates
Budget
$000
Total
Budget
$000
Total Annual Appropriations and Forecast Permanent Appropriations 1,498,553 101,767 (18,700) 83,067 1,581,620
Total Forecast MYA Non-Departmental Output Expenses
(see Note 1)
474,420 (253,257) 10,000 (243,257) 231,163
Total Forecast MYA Non-Departmental Other Expenses - 36,969 - 36,969 36,969
Total Forecast MYA Non-Departmental Capital Expenditure 255,107 (234,991) - (234,991) 20,116
Total Annual Appropriations and Forecast Permanent Appropriations and Multi-Year Appropriations 2,228,080 (349,512) (8,700) (358,212) 1,869,868

Note 1 - The amounts included in the Addition to the Supplementary Estimates figure, Cumulative Supplementary Estimates figure and the Total Budget figure in respect of the new MYA “COVID-19 Housing Providers Operational Cost” include the entire appropriated amount (the amount being approved through the Addition to the Supplementary Estimates) rather than reflecting the forecast profile. The forecast profile can be found in the MYA tables above.

Capital Injection Authorisations

  2019/20
Estimates
Budget
$000
Supplementary
Estimates
Budget
$000
Addition to the
Supplementary
Estimates
Budget
$000
Cumulative
Supplementary
Estimates
Budget
$000
Total
Budget
$000
Ministry of Housing and Urban Development - Capital Injection (M37) 400 490 - 490 890

Supporting Information

Part 1 - Vote as a Whole

1.2 - Trends in the Vote

Summary of Financial Activity
  2019/20
Estimates
$000
Cumulative Supplementary Estimates Total
$000
Departmental
Transactions
$000
Non-Departmental
Transactions
$000
Total
Transactions
$000
Appropriations          
Output Expenses 532,072 (4,826) (210,731) (215,557) 316,515
Benefits or Related Expenses 106,120 N/A (16,100) (16,100) 90,020
Borrowing Expenses - - - - -
Other Expenses 789 - 56,583 56,583 57,372
Capital Expenditure 255,507 600 (284,991) (284,391) (28,884)
Intelligence and Security Department Expenses and Capital Expenditure - - N/A - -
Multi-Category Expenses and Capital Expenditure (MCA)          
   Output Expenses 1,273,677 9,594 45,470 55,064 1,328,741
   Other Expenses 22,378 - 3,626 3,626 26,004
   Capital Expenditure 37,537 N/A (7,437) (7,437) 30,100
Total Appropriations 2,228,080 5,368 (363,580) (358,212) 1,869,868
Crown Revenue and Capital Receipts          
Tax Revenue - N/A - - -
Non-Tax Revenue 109,730 N/A (16,330) (16,330) 93,400
Capital Receipts 31,600 N/A (14,620) (14,620) 16,980
Total Crown Revenue and Capital Receipts 141,330 N/A (30,950) (30,950) 110,380

Part 3 - Details of Non-Departmental Appropriations

3.1 - Non-Departmental Output Expenses

COVID-19 Housing Providers Operational Cost (M37)
Scope of Appropriation and Expenses
Type, Title, Scope and Period of Appropriations Appropriations, Adjustments and Use $000

COVID-19 Housing Providers Operational Cost (M37)

This appropriation is limited to payments to Housing Providers for additional operational costs incurred associated with responding to COVID 19.

Commences: 30 April 2020

Expires: 30 June 2021

Original Appropriation 10,000
Adjustments to 2018/19 -
Adjustments for 2019/20 -
Adjusted Appropriation 10,000
Actual to 2018/19 Year End -
Estimated Actual for 2019/20 4,000
Estimate for 2020/21 6,000
Estimated Appropriation Remaining -
What is Intended to be Achieved with this Appropriation

This appropriation is intended to assist housing providers with additional operational costs incurred as a response to COVID-19.

How Performance will be Assessed and End of Year Reporting Requirements
Assessment of Performance 2019/20
Estimates
Standard
Supplementary
Estimates
Standard
Addition to the
Supplementary
Estimates
Standard
Total
Standard
Number of eligible housing providers who receive assistance is between: New Measure New Measure 50-100 50-100
Percentage of eligible housing providers who receive payment within 10 business days of their claim for assistance being accepted: New Measure New Measure 100% 100%
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.

Reasons for Change in Appropriation

This appropriation increased by $10 million in 2019/20 due to new funding to respond to COVID-19 increased operational costs of housing providers.

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

4 - Multi-Category Expenses and Capital Expenditure

Public Housing (M37)
Overarching Purpose Statement
The single overarching purpose of this appropriation is to secure and purchase the provision of public housing and associated support services.
Scope of Appropriation

Non-Departmental Output Expenses

Purchase of Public Housing Provision
This category is limited to purchasing the provision of public housing and related services from public housing providers in accordance with reimbursement agreements or tailored agreements under the Housing Restructuring and Tenancy Matters Act 1992.

Services for People in Need of or at risk of Needing Public Housing
This category is limited to the provision of support services to those in need of public housing or those at risk of entering or exiting public housing.

Services Related to the Provision of Public Housing
This category is limited to the provision of services related to the provision of public housing by a public housing provider.

Non-Departmental Other Expenses

Support for the Provision of Public Housing Supply
This category is limited to providing support to secure access to properties for public housing providers to use for public housing.

Expenses, Revenue and Capital Expenditure
  2019/20
Estimates
$000
Supplementary
Estimates
$000
Addition to the
Supplementary
Estimates
$000
Total
$000
Total Appropriation 1,150,597 796 (300) 1,151,093
Non-Departmental Output Expenses        
Purchase of Public Housing Provision 1,093,458 (1,900) (300) 1,091,258
Services for People in Need of or at risk of Needing Public Housing 37,965 (930) - 37,035
Services Related to the Provision of Public Housing 900 - - 900
Non-Departmental Other Expenses        
Support for the Provision of Public Housing Supply 18,274 3,626 - 21,900
What is Intended to be Achieved with this Appropriation

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

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

This appropriation decreased by a further $300,000 to $1,151.093 million for 2019/20 due to a transfer of funding to the Transitional Housing MCA in order to assist with the immediate response to COVID-19 to bring on 1,200 additional housing places and 400 short-term places through July 2020 to reduce overcrowding situations.

Transitional Housing (M37)
Overarching Purpose Statement
The single overarching purpose of this appropriation is to fund the delivery of transitional housing places and services in New Zealand.
Scope of Appropriation

Non-Departmental Output Expenses

Provision of Transitional Housing Places
This category is limited to supporting transitional housing providers to provide transitional housing places.

Transitional Housing Services
This category is limited to payments to transitional housing providers on a per household basis to cover tenancy and property management, and services to support tenants in transitional housing to move into sustainable housing.

Non-Departmental Other Expenses

Impairment of Crown Assets Related to Transitional Housing
This appropriation is limited to expenses incurred as a result of the impairment of Crown assets related to transitional housing, including write down and write offs.

Non-Departmental Capital Expenditure

Acquisition, Development and Construction of Transitional Housing
This appropriation is limited to funding the acquisition, construction and development or redevelopment of land or properties for the purpose of providing transitional housing.

Expenses, Revenue and Capital Expenditure
  2019/20
Estimates
$000
Supplementary
Estimates
$000
Addition to the
Supplementary
Estimates
$000
Total
$000
Total Appropriation 138,862 59,563 (18,400) 180,025
Non-Departmental Output Expenses        
Provision of Transitional Housing Places 58,762 11,000 23,300 93,062
Transitional Housing Services 48,363 6,000 8,300 62,663
Non-Departmental Capital Expenditure        
Acquisition, Development and Construction of Transitional Housing 31,737 42,563 (50,000) 24,300
What is Intended to be Achieved with this Appropriation

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

How Performance will be Assessed for this Appropriation
Assessment of Performance 2019/20
Estimates
Standard
Supplementary
Estimates
Standard
Addition to the
Supplementary
Estimates
Standard
Total
Standard
Non-Departmental Output Expenses        

Provision of Transitional Housing Places

This category is intended to achieve improved access to transitional places for eligible families and individuals across New Zealand.

       
The number of transitional housing places in areas of demand will be between: 2,600 - 2,800 300 1,600 4,500 - 4,700

Transitional Housing Services

This category is intended to achieve an increase in support services for the families and individuals who access the additional transitional housing places secured.

       
The total number of transitional housing places that receive associated support services will be between: 1,800 - 2,800 - - 1,800 - 2,800
Non-Departmental Capital Expenditure        

Acquisition, Development and Construction of Transitional Housing

This category is intended to achieve an increase in the supply of transitional housing places.

       
The number of transitional housing places that will be acquired, developed or constructed will be between: 100 - 120 (90) - 10 - 30
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

This appropriation decreased by a further $18.400 million to $180.025 million for 2019/20 due to a decrease of $50 million which is transferred to the 2020/21 year to fund further investment in permanent Transitional Housing places, off-set by an increase of $31.600 million in operating funding to contract 1,200 additional Transitional Housing places, and a further 400 short-term places to reduce overcrowding situations.

Last updated: 
Tuesday, 16 June 2020