Vote Housing - Supplementary Estimates 2012/13

Details of Multi-Year Appropriations#

Information Supporting the Supplementary Estimates Vote Housing#

MINISTER(S) RESPONSIBLE FOR APPROPRIATIONS: Minister for Building and Construction (M9), Minister of Housing (M37)

ADMINISTERING DEPARTMENT: Ministry of Business, Innovation and Employment

MINISTER RESPONSIBLE FOR MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT: Minister for Economic Development

Part 1 - Summary of the Vote#

Part 1.3 - Trends in the Vote

Summary of Financial Activity

Part 2 - Details and Expected Performance for Output Expenses#

Part 2.1 - Departmental Output Expenses#

Building Regulation and Control (M9)

Scope of Appropriation and Expenses

Revenue

Reasons for Change in Appropriation

The increase is due to a fiscally neutral adjustment (FNA) from departmental output expense Weathertight Services for post disaster building management ($1.018 million), additional expenditure for the Productivity Partnership ($960,000) funded by third party revenue and the Christchurch Housing Showcase Design Competition ($80,000) funded by third party revenue.

Canterbury Earthquakes: Building and Housing Assistance (M37)#

Scope of Appropriation#

Reasons for Change in Appropriation#

This appropriation increased from $2.505 million to $4.902 million due to an expense transfer from 2011/12 ($500,000) and an FNA from Canterbury Earthquake: Emergency and Temporary Accommodation to rebalance temporary accommodation appropriations ($1.165 million) and an FNA from departmental output expense Weathertight Services for administration expenses for the Canterbury Earthquakes Royal Commission ($732,000).

Occupational Licensing (M9)#

Scope of Appropriation and Expenses#

Revenue#

Reasons for Change in Appropriation#

The increase relates to external funding being provided from both the Electrical Workers Registration Board ($500,000) and the Licensed Building Practitioners scheme ($1.500 million).

Policy Advice and Related Outputs MCOA (M9)#

Scope of Appropriation#

Explanation for Use of Multi-Class Output Expense Appropriation#

The output classes are grouped together because they relate to the provision of policy advice and related outputs such as Ministerial Servicing and Performance Monitoring by the Ministry of Business, Innovation and Employment.

Reasons for Change in Output Classes#

MCOA - Housing Policy Advice

This output class increased from $6.866 million to $8.066 million due to an FNA from departmental output expense Weathertight Services to departmental output expense Housing Policy Advice MCOA to fund work in respect of the Social Housing Reform Programme ($1.200 million).

MCOA - Housing, Ministerial Servicing and Performance and Monitoring

This output class decreased from $647,000 to $270,000 due to an FNA from departmental output expense Housing, Ministerial Servicing and Performance and Monitoring MCOA to Vote Finance for future monitoring of Housing New Zealand Corporation ($377,000).

Residential Tenancy and Unit Title Services (M37)#

Scope of Appropriation and Expenses#

Revenue#

Reasons for Change in Appropriation#

 The decrease relates to an FNA to departmental output expense Residential Tenancy and Unit Title Services ($150,000).  The multi-year appropriation is due to expire on 30 June 2013.  The FNA will enable expenditure to be transferred from 2012/13 to 2013/14.

Weathertight Services (M9)#

Scope of Appropriation#

Expenses and Revenue#

Reasons for Change in Appropriation#

This appropriation decreased due to FNAs to the following departmental output expenses:

• Policy Advice and Related Outputs MCOA to fund work in respect of the Social Housing Reform Programme ($1.200 million)
• Canterbury Earthquakes: Building and Housing Assistance for administration expenses for the Canterbury Earthquakes Royal Commission ($732,000)
• HNZC Housing Support Services for the shortfall between rent received and market rent of the Community Group Housing (CGH) properties ($890,000) and an increase to the administrative support for the KiwiSaver first-home deposit subsidy ($75,000), and
• Building Regulation and Control multi-year appropriation (MYA) for post disaster building management ($1.018 million).

Part 2.2 - Non-Departmental Output Expenses#

Canterbury Earthquakes: Emergency and Temporary Accommodation (M37)#

Scope of Appropriation

Reasons for Change in Appropriation

This appropriation decreased from $9.352 million to $6.050 million due to two FNAs, one to departmental output expense Canterbury Earthquakes: Building and Housing Assistance to rebalance temporary accommodation appropriations ($1.165 million) and one to non-departmental Capital Expenditure Canterbury Earthquake: Acquisition of Emergency and Temporary Accommodation to cover the acquisition costs of the Rangers Park development ($6.473 million), and an expense transfer to 2013/14 and outyears for revised timing of temporary accommodation funding ($5.897 million).  These were offset by an expense transfer from 2011/12 ($10.233 million).

HNZC Housing Support Services (M37)#

Scope of Appropriation#

Reasons for Change in Appropriation#

This appropriation increased from $12.566 million to $13.558 million due to three FNAs, one from non-departmental capital expenditure Capital Injections to Housing New Zealand Corporation (HNZC) for Housing Activities ($27,000) for the transfer of capital component of KiwiSaver systems funding to operating expenses, and two from departmental output expense Weathertight Services for the shortfall between rent received and market rent of the CGH properties ($890,000) and an increase to the administrative support for the KiwiSaver first-home deposit subsidy ($75,000).

Purchase of Housing and Related Services for Tenants Paying Income Related Rent (M37)#

Scope of Appropriation#

Reasons for Change in Appropriation#

This appropriation increased from $626.482 million to $637.158 million due to the growth in market rent, changes in the size of the state housing portfolio and changes in tenant's incomes.

Part 3 - Details for Benefits and Other Unrequited Expenses#

Part 3.2 - Non-Departmental Benefits and Other Unrequited Expenses#

Housing Assistance (M37)

Scope of Appropriation

Reasons for Change in Appropriation

The appropriation decreased from $1.585 million to $1.510 million due to loan repayments under the closed Housing New Zealand Corporation Community Owned Rural Rental Loans and Special Housing Action Zones products.

KiwiSaver Deposit Subsidy (M37)#

Scope of Appropriation#

Reasons for Change in Appropriation#

The appropriation increased from $13 million to $15.799 million to recognise higher than expected demand.

Part 5 - Details and Expected Results for Other Expenses#

Part 5.2 - Non-Departmental Other Expenses#

Social Housing Fund (M37)

Scope of Appropriation and Expenses

Reasons for Change in Appropriation

The increase relates to funding for social housing on the Chatham Islands ($400,000) and an FNA from non-departmental other expenses Social Housing Fund ($34,788).

Unwind of Discount Rate used in the Present Value Calculation of Direct Payments under the Weathertight Homes Financial Assistance Package. (M9)#

Scope of Appropriation#

Reasons for Change in Appropriation#

This appropriation increased from $700,000 to $6.839 million to reflect the forecast unwind of the present value calculation for payments under the Financial Assistance Package.

Weathertight Services: Guarantee Fee Subsidy (M9)#

Scope of Appropriation and Expenses#

Reasons for Change in Appropriation#

The decrease is a technical adjustment to account for the 2011/12 underspend.

Part 6 - Details and Expected Results for Capital Expenditure#

Part 6.1 - Departmental Capital Expenditure#

Department of Building and Housing - Capital Expenditure PLA (M9)

Scope of Appropriation

Capital Expenditure

Reasons for Change in Appropriation

This appropriation transferred to Vote Economic Development from 1 July 2012 due to the formation of the Ministry of Business, Innovation and Employment. The Minister for Economic Development is the Responsible Minister for the Ministry of Business, Innovation and Employment.

Part 6.2 - Non-Departmental Capital Expenditure#

Acquisition and Development of properties under the Housing Act 1955 (M37)#

Scope of Appropriation

Reasons for Change in Appropriation

The appropriation increased from $10 million to $14.998 million due to a carry forward of funding from 2011/12 ($6.998 million). This was offset by a capital transfer to 2013/14 to recognise change in expected timing of payments for the Hobsonville Urban Development ($2 million).

Acquisition and Improvement of Housing New Zealand Corporation state houses (M37)#

Scope of Appropriation#

Reasons for Change in Appropriation#

The appropriation increased from $5.800 million to $8.300 million due to a carry forward of funding from 2011/12.

Canterbury Earthquake: Acquisition of Emergency and Temporary Accommodation (M37)#

Scope of Appropriation#

Capital Expenditure#

Reasons for Change in Appropriation#

The increase in appropriation was due to a carry forward of $2.071 million from 2011/12, an expense transfer of $4 million from 2011/12 for temporary accommodation and an FNA transfer of $6.473 million from non-departmental output expense Canterbury Earthquakes: Emergency and Temporary Accommodation to cover acquisition costs of the Rangers Park.

Capital Injections to Housing New Zealand Corporation for Housing Activities (M37)#

Scope of Appropriation#

Reasons for Change in Appropriation#

The total appropriation of $27,000 transferred to non-departmental output expense HNZC Housing Support Services as a result of an FNA of the capital component of KiwiSaver systems funding to operating expenses.

Tamaki Redevelopment Company Establishment (M37)#

Scope of Appropriation#

Capital Expenditure#

Reasons for Change in Appropriation#

This appropriation was established following a Cabinet decision for Tamaki Redevelopment Company.