Supplementary estimates of appropriations

Vote Housing - Supplementary Estimates 2014/15

Publication type:
Supplementary estimates of appropriations
Status:
Superseded
Document (signed) date:
Issue date:
Part of:
Corporate author:
Government of New Zealand
Viewpoint:
Government
Publication category:
Budgets of the government
Fiscal year:
2014/15
Budget year:
2015
Budget vote:
Housing
Formats and related files

Note 60

From the Estimates of Appropriations 2015/16 in Budget 2015, Vote Housing was renamed to Vote Building and Housing.

APPROPRIATION MINISTER(S): Minister for Building and Housing (M9), Minister for Social Housing (M37), Minister Responsible for Housing New Zealand Corporation (M90)

APPROPRIATION ADMINISTRATOR: Ministry of Business, Innovation and Employment

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

Details of Appropriations and Capital Injections#

Annual and Permanent Appropriations#

  2014/15
Titles and Scopes of Appropriations by Appropriation Type Estimates
Budget
$000		 Supplementary
Estimates
Budget
$000		 Total
Budget
$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.		 21,659 6,452 28,111

Canterbury Recovery: Building and Housing Assistance (M9)

This appropriation is limited to accommodation matching and placement services to people displaced during the Canterbury recovery.		 1,482 50 1,532

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.		 9,266 - 9,266

Professional Engineering input toward the Resolution of Canterbury Residential Rebuild Design Uncertainty (M9)

This appropriation is limited to the provision of professional engineering advice and support for either third parties or the general public to support the Canterbury residential rebuild.		 700 - 700

Residential Tenancy and Unit Title Services (M9)

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.		 21,523 3,300 24,823

Social Housing Unit (M37)

This appropriation is limited to the administration costs of the Social Housing Unit.		 2,303 150 2,453

Special Housing Areas (M9)

This appropriation is limited to the provision of policy advice on the establishment of special housing areas, the negotiation of housing accords with local councils and the costs of providing resource consenting processes in special housing areas.		 4,963 (1,700) 3,263

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.		 18,418 (6,185) 12,233

Total Departmental Output Expenses

 80,314 2,067 82,381

Non-Departmental Output Expenses

      

Canterbury Earthquakes: Emergency and Temporary Accommodation (M9)

This appropriation is limited to operating expenses incurred on emergency and temporary accommodation for people displaced by the Canterbury earthquakes.		 3,150 94 3,244

HNZC Housing Support Services (M9)

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.		 15,494 3,498 18,992

Kainga Whenua Infrastructure Grant (M9)

This appropriation is limited to infrastructure associated with housing development on Maori land.		 2,800 2,889 5,689

Management of Crown Properties held under the Housing Act 1955 (M90)

This appropriation is limited to the administration and management of Crown owned properties held under the Housing Act 1955.		 1,395 - 1,395

Tamaki Regeneration (M90)

This appropriation is limited to the housing demonstration projects and associated regeneration activity for Tamaki Regeneration.		 - 3,020 3,020

Total Non-Departmental Output Expenses

 22,839 9,501 32,340

Benefits or Related Expenses

      

Housing Assistance (M9)

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.		 1,495 - 1,495

KiwiSaver Deposit Subsidy (M9)

To enable the provision of the KiwiSaver deposit subsidy for people who meet the required eligibility criteria.		 30,350 7,038 37,388

Total Benefits or Related Expenses

 31,845 7,038 38,883

Non-Departmental Other Expenses

      

Christchurch City Council Home Ownership Initiative (M37)

This appropriation is limited to supporting the Christchurch City Council to provide home ownership services to people in Christchurch.		 - 5,000 5,000

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.		 4,104 - 4,104

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 65ZG of the Public Finance Act 1989.		 1,300 - 1,300

Rural and Maori Housing (M9)

This appropriation is limited to the development of Maori social housing providers, the repair and rebuild of rural housing and improving Chatham Islands housing.		 4,000 - 4,000

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

This appropriation is limited to the expense incurred in unwinding the discount rate used in the present value calculation of the Weathertight Homes Financial Assistance Package liability as the liability nears settlement.		 3,215 - 3,215

Weathertight Homes Resolution (M9)

This appropriation is limited to the financial assistance provided to owners of leaky homes following amendment to the definition of 'built date' in the Weathertight Homes Resolution Services Act 2006.		 - 6,860 6,860

Wellington City Council Social Housing Assistance (M9)

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.		 32,000 (3,500) 28,500

Total Non-Departmental Other Expenses

 44,619 8,360 52,979

Non-Departmental Capital Expenditure

      

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.		 5,300 1,906 7,206

Christchurch Housing Developments (M9)

This appropriation is limited to acquiring, developing and modernising properties to support the development of affordable housing in Christchurch.		 - 13,880 13,880

Refinancing of Housing New Zealand Corporation and Housing New Zealand Limited Debt (M90)

This appropriation is limited to refinancing existing Housing New Zealand Corporation and Housing New Zealand Limited debt.		 173,901 - 173,901

Total Non-Departmental Capital Expenditure

 179,201 15,786 194,987

Multi-Category Expenses and Capital Expenditure

      

Policy Advice and Related Outputs MCA (M9)

The 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.		 9,736 1,203 10,939
Departmental Output Expenses
      
Building and Construction Ministerial Servicing
This category is limited to the provision of support, information and services to the Minister for Building and Construction to enable the Minister to discharge their portfolio responsibilities (other than policy decision making).		 282 (282) -
Building and Construction Policy
This category is limited to the provision of 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 Building and Construction.		 2,540 375 2,915
Housing Policy Advice
This category is limited to the provision of 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.		 6,914 828 7,742
Related Services to Ministers - Building and Housing
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 building and housing including social housing.		 - 282 282

Total Multi-Category Expenses and Capital Expenditure

 9,736 1,203 10,939

Total Annual and Permanent Appropriations

 368,554 43,955 412,509

Multi-Year Appropriations#

Type, Title, Scope and Period of Appropriations Appropriations, Adjustments and Use $000

Non-Departmental Other Expenses

    

Social Housing Fund (M37)

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

Commences: 01 July 2012

Expires: 30 June 2015		 Original Appropriation 104,100
Adjustments to 2013/14 41,188
Adjustments for 2014/15 (29,142)
Adjusted Appropriation 116,146
Actual to 2013/14 Year End 67,856
Estimated Actual for 2014/15 48,290
Estimated Actual for 2015/16 -
Estimated Appropriation Remaining -

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: 01 July 2010

Expires: 30 June 2015		 Original Appropriation 13,520
Adjustments to 2013/14 (7,091)
Adjustments for 2014/15 (5,727)
Adjusted Appropriation 702
Actual to 2013/14 Year End 102
Estimated Actual for 2014/15 600
Estimated Actual for 2015/16 -
Estimated Appropriation Remaining -

Total Annual, Permanent and Multi-Year Appropriations#

  2014/15
  Estimates
Budget
$000		 Supplementary
Estimates
Budget
$000		 Total
Budget
$000
Total Annual and Permanent Appropriations 368,554 43,955 412,509
Total MYA Non-Departmental Other Expenses Forecasts 37,429 11,461 48,890

Total Annual and Permanent Appropriations and Multi-Year Appropriation Forecasts

 405,983 55,416 461,399

Supporting Information#

Part 1 - Vote as a Whole#

1.2 - Trends in the Vote

Summary of Financial Activity

  2014/15
    Supplementary Estimates  
  Estimates
$000		 Departmental
Transactions
$000		 Non-Departmental
Transactions
$000		 Total
Transactions
$000		 Total
$000

Appropriations

          
Output Expenses 103,153 2,067 9,501 11,568 114,721
Benefits or Related Expenses 31,845 N/A 7,038 7,038 38,883
Borrowing Expenses - - - - -
Other Expenses 82,048 - 19,821 19,821 101,869
Capital Expenditure 179,201 - 15,786 15,786 194,987
Intelligence and Security Department Expenses and Capital Expenditure - - N/A - -
Multi-Category Expenses and Capital Expenditure (MCA)          
Output Expenses 9,736 1,203 - 1,203 10,939
Other Expenses - - - - -
Capital Expenditure - N/A - - -

Total Appropriations

 405,983 3,270 52,146 55,416 461,399

Crown Revenue and Capital Receipts

          
Tax Revenue - N/A - - -
Non-Tax Revenue 198,420 N/A 21,250 21,250 219,670
Capital Receipts - N/A 20,891 20,891 20,891

Total Crown Revenue and Capital Receipts

 198,420 N/A 42,141 42,141 240,561

Part 2 - Details of Departmental Appropriations#

2.1 - Departmental Output Expenses

Building Regulation and Control (M9)

Scope of Appropriation

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.

Expenses and Revenue

  2014/15
  Estimates
$000		 Supplementary
Estimates
$000		 Total
$000
Total Appropriation 21,659 6,452 28,111
Revenue from the Crown - 1,150 1,150
Revenue from Others 21,687 5,302 26,989

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the development and regulation of performance standards to ensure safe, healthy and affordable home and building construction.

Reasons for Change in Appropriation

This appropriation increased by $6.452 million to $28.111 million for 2014/15 due to:

  • $3.080 million for the National Building Consent System programme
  • $2.222 million to cover additional costs relating to the Canterbury Rebuild implementation of the Royal Commission recommendations
  • $1 million from a transfer from 2013/14 for the post disaster building management programme, and
  • $150,000 from a transfer from departmental output expense - Weathertight Services for the smarter homes website.

Canterbury Recovery: Building and Housing Assistance (M9)

Scope of Appropriation

This appropriation is limited to accommodation matching and placement services to people displaced during the Canterbury recovery.

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve assistance to Cantabrians affected by the earthquakes to find safe and healthy temporary accommodation.

Reasons for Change in Appropriation

This appropriation increased by $50,000 to $1.532 million for 2014/15 due to a transfer from departmental output expense - Weathertight Services to meet cost pressures from increased activity in this area.

Occupational Licensing (M9)

Scope of Appropriation

This appropriation is limited to the development, implementation and maintenance of the registration and licensing regimes for building practitioners and electrical workers.

Expenses and Revenue

  2014/15
  Estimates
$000		 Supplementary
Estimates
$000		 Total
$000
Total Appropriation 9,266 - 9,266
Revenue from the Crown - 691 691
Revenue from Others 8,844 (691) 8,153

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve certainty and confidence for the industry and the public that licensed practitioners and workers in the building, construction, and electrical sectors are competent and contribute to safe, healthy and affordable homes and buildings.

Professional Engineering input toward the Resolution of Canterbury Residential Rebuild Design Uncertainty (M9)

Scope of Appropriation

This appropriation is limited to the provision of professional engineering advice and support for either third parties or the general public to support the Canterbury residential rebuild.

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve independent technical advice from geotechnical, structural engineering and quantity surveying professionals in support of the Residential Advisory Service.

Residential Tenancy and Unit Title Services (M9)

Scope of Appropriation

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.

Expenses and Revenue

  2014/15
  Estimates
$000		 Supplementary
Estimates
$000		 Total
$000
Total Appropriation 21,523 3,300 24,823
Revenue from the Crown - - -
Revenue from Others 17,788 3,300 21,088

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the provision of information, education, advice, bond processing and mediation services, and an environment in which consumers and businesses are well informed, and understand their rights and regulatory obligations.

Reasons for Change in Appropriation

This appropriation increased by $3.300 million to $24.823 million for 2014/15 due to official cash rate increases and the Tenancy Bond fund increasing.

Social Housing Unit (M37)

Scope of Appropriation

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

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve social and affordable homes.

Reasons for Change in Appropriation

This appropriation increased by $150,000 to $2.453 million for 2014/15 due to a transfer from departmental output expense - Weathertight Services to meet cost pressures from increased activity in this area.

Special Housing Areas (M9)

Scope of Appropriation

This appropriation is limited to the provision of policy advice on the establishment of special housing areas, the negotiation of housing accords with local councils and the costs of providing resource consenting processes in special housing areas.

Expenses and Revenue

  2014/15
  Estimates
$000		 Supplementary
Estimates
$000		 Total
$000
Total Appropriation 4,963 (1,700) 3,263
Revenue from the Crown 1,963 550 2,513
Revenue from Others 3,000 (2,250) 750

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve provision of a resource consenting function in Special Housing Areas declared outside of the provisions of a Housing Accord.

Reasons for Change in Appropriation

This appropriation decreased by $1.700 million to $3.263 million for 2014/15 as it is unlikely that the development scheme will be implemented this year; however Revenue from Others is not reduced in total so as to cover any unexpected expenditure.

Weathertight Services (M9)

Scope of Appropriation

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.

Expenses and Revenue

  2014/15
  Estimates
$000		 Supplementary
Estimates
$000		 Total
$000
Total Appropriation 18,418 (6,185) 12,233
Revenue from the Crown 18,418 (6,185) 12,233
Revenue from Others 113 - 113

Reasons for Change in Appropriation

This appropriation decreased by $6.185 million to $12.233 million for 2014/15 due to:

The following transfers to meet cost pressures from increased activity in these areas

  • $1.500 million in 2014/15 to Vote Labour multi-category expenses and capital expenditure - Policy Advice and Related Outputs MCA - Policy Advice - Workplace Relations and Safety
  • $1 million in 2014/15 to multi-category expenses and capital expenditure - Policy Advice and Related Outputs MCA Policy Advice - Commerce
  • $760,000 in 2014/15 to multi-category expenses and capital expenditure - Policy Advice and Related Outputs MCA Housing Policy Advice
  • $600,000 in 2014/15 to Vote Commerce and Consumer Affairs multi-category expenses and capital expenditure - Policy Advice and Related Outputs MCA Policy Advice - Consumer Affairs
  • $375,000 in 2014/15 to multi-category expenses and capital expenditure - Policy Advice and Related Outputs MCA Building and Construction Policy
  • $150,000 in 2014/15 to departmental output expense - Social Housing Unit
  • $50,000 in 2014/15 to departmental output expense: Canterbury Recovery: Building and Housing Assistance
  • $1 million in 2014/15 to non-departmental output expense - HNZC Housing Support Services to provide for the KiwiSaver HomeStart promotional campaign, and
  • $750,000 in 2014/15 to departmental output expense - Building, Regulation and Control for the smarter homes website.

Part 3 - Details of Non-Departmental Appropriations#

3.1 - Non-Departmental Output Expenses

Canterbury Earthquakes: Emergency and Temporary Accommodation (M9)

Scope of Appropriation

This appropriation is limited to operating expenses incurred on emergency and temporary accommodation for people displaced by the Canterbury earthquakes.

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the provision of temporary accommodation for people displaced by the Canterbury earthquakes.

Reasons for Change in Appropriation

This appropriation increased by $94,000 to $3.244 million in 2014/15 due to a transfer from 2013/14 to provide additional funding to support continued development of the business case for additional villages.

HNZC Housing Support Services (M9)

Scope of Appropriation

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.

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve safe, healthy and affordable homes with the purchase of housing related services from Housing New Zealand Corporation.

Reasons for Change in Appropriation

This appropriation increased by $3.498 million to $18.992 million for 2014/15 due to:

  • $2.773 million due to a transfer from Vote Social Development to contribute to community group housing
  • $725,000 due to a transfer from departmental output expense - Weathertight Service.

Kainga Whenua Infrastructure Grant (M9)

Scope of Appropriation

This appropriation is limited to infrastructure associated with housing development on Maori land.

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the development of infrastructure for safe, healthy and affordable homes on Maori land.

How Performance will be Assessed and End of Year Reporting Requirements

  2014/15
Performance Measures Estimates
Standard		 Supplementary
Estimates
Standard		 Total
Standard

Projects completed within agreed timeframes

 New measure Achieved Achieved

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Ministry of Business, Innovation and Employment in its Annual Report.

Reasons for Change in Appropriation

This appropriation increased by $2.889 million to $5.689 million for 2014/15 due to a transfer of expenditure from 2013/14 as a result of delays between when the grants are awarded and when work commences.

Management of Crown Properties held under the Housing Act 1955 (M90)

Scope of Appropriation

This appropriation is limited to the administration and management of Crown owned properties held under the Housing Act 1955.

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.

Tamaki Regeneration (M90)

Scope of Appropriation

This appropriation is limited to the housing demonstration projects and associated regeneration activity for Tamaki Regeneration.

Expenses

  2014/15
  Estimates
$000		 Supplementary Estimates
$000		 Total
$000
Total Appropriation - 3,020 3,020

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the delivery of housing regeneration projects for Tamaki Regeneration.

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 as the amount of this annual appropriation for a non-departmental output expense is less than $5 million.

Reasons for Change in Appropriation

This appropriation was established in 2014/15 to support the next phase of work associated with the Tamaki Transformation Programme.

Conditions on Use of Appropriation

Reference Conditions
Cabinet decisions Funding and delivery as per the Tamaki Redevelopment Company: Business Implementation Plan

3.2 - Non-Departmental Benefits or Related Expenses

Housing Assistance (M9)

Scope of Appropriation

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.

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 Housing New Zealand Corporation and other mortgage providers.

KiwiSaver Deposit Subsidy (M9)

Scope of Appropriation

To enable the provision of the KiwiSaver deposit subsidy for people who meet the required eligibility criteria.

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the provision of KiwiSaver deposit subsidies to ensure safe, healthy and affordable homes for eligible people.

Reasons for Change in Appropriation

This appropriation increased by $7.038 million to $37.388 million for 2014/15 to give effect to the KiwiSaver HomeStart policy proposals.

3.4 - Non-Departmental Other Expenses

Christchurch City Council Home Ownership Initiative (M37)

Scope of Appropriation

This appropriation is limited to supporting the Christchurch City Council to provide home ownership services to people in Christchurch.

Expenses

  2014/15
  Estimates
$000		 Supplementary Estimates
$000		 Total
$000
Total Appropriation - 5,000 5,000

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve safe, healthy and affordable homes by providing a range of home ownership and other assistance products for low income families.

How Performance will be Assessed and End of Year Reporting Requirements

  2014/15
Performance Measures Estimates
Standard		 Supplementary
Estimates
Standard		 Total
Standard

All payments to Christchurch City Council will be made in accordance with agreed procedures and timeframes

 Achieved Achieved Achieved

End of Year Performance Reporting

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

Community Housing Rent Relief Programme (M37)

Scope of Appropriation

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.

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve safe, healthy and affordable homes by the provision of rent relief to service provider tenants of Community Group Housing properties.

Payments in respect of the Weathertight Services Loan Guarantees PLA (M9)

Scope of Appropriation

This appropriation is limited to the payments to banks under the Weathertight Services Financial Assistance Package: Loan Guarantee scheme as authorised under section 65ZG of the Public Finance Act 1989.

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve safe and healthy homes by the provision of a loss share contribution to banks, if a loan claimant defaults on a mortgage associated with the repair of a home under the Weathertight Financial Assistance Package.

Rural and Maori Housing (M9)

Scope of Appropriation

This appropriation is limited to the development of Maori social housing providers, the repair and rebuild of rural housing and improving Chatham Islands housing.

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the development of Maori social housing providers, and improved social and rural housing.

End of Year Performance Reporting

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

Social Housing Fund (M37)

Scope of Appropriation and Expenses

Type, Title, Scope and Period of Appropriations Appropriations, Adjustments and Use $000

Social Housing Fund (M37)

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

Commences: 01 July 2012

Expires: 30 June 2015		 Original Appropriation 104,100
Adjustments to 2013/14 41,188
Adjustments for 2014/15 (29,142)
Adjusted Appropriation 116,146
Actual to 2013/14 Year End 67,856
Estimated Actual for 2014/15 48,290
Estimated Actual for 2015/16 -
Estimated Appropriation Remaining -

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve safe, healthy and affordable homes by the purchase of services from, or providing support to, social housing providers.

End of Year Performance Reporting

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

Reasons for Change in Appropriation

This appropriation decreased by $29.142 million for 2014/15 due to a transfer of funding to 2015/16 to establish a further multi-year appropriation commencing 1 July 2015 and expiring 30 June 2017.

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

Scope of Appropriation

This appropriation is limited to the expense incurred in unwinding the discount rate used in the present value calculation of the Weathertight Homes Financial Assistance Package liability as the liability nears settlement.

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the unwinding of the discount rate used in the present value calculation of the Weathertight Homes Financial Assistance Package liability.

End of Year Performance Reporting

An exemption was granted under s15D(2)(b)(ii) of the Public Finance Act, as additional performance information is unlikely to be informative because this appropriation is solely for the unwinding of the discount rate used in the present value calculation of direct payments under the Weathertight Homes Financial Assistance Package.

Weathertight Homes Resolution (M9)

Scope of Appropriation

This appropriation is limited to the financial assistance provided to owners of leaky homes following amendment to the definition of 'built date' in the Weathertight Homes Resolution Services Act 2006.

Expenses

  2014/15
  Estimates
$000		 Supplementary Estimates
$000		 Total
$000
Total Appropriation - 6,860 6,860

What is Intended to be Achieved with this Appropriation

This appropriation is intended to reconsider applications made under the Weathertight Homes Resolution Services Act that were ineligible due to the interpretation of "built date" applied at the time but which would have met the eligibility test had the test been made based on the interpretation of "built date" given in the Supreme Court decision (10 June 2014).

How Performance will be Assessed and End of Year Reporting Requirements

  2014/15
Performance Measures Estimates
Standard		 Supplementary
Estimates
Standard		 Total
Standard

Satisfaction of eligible claimants of the overall quality and timeliness of the Weathertight Homes Resolution Services Claims Advisory service.

 80% satisfied or very satisfied 80% satisfied or very satisfied 80% satisfied or very satisfied

End of Year Performance Reporting

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

Reasons for Change in Appropriation

This appropriation was established in 2014/15 to recognise the increased liability associated with amending the Weathertight Homes Resolution Services Act 2006 following a decision by the Supreme Court on the interpretation of the "built date".

Conditions on Use of Appropriation

Reference Conditions
Cabinet decisions Weathertight Homes Resolution Services Act 2006

Weathertight Services: Guarantee Fee Subsidy (M9)

Scope of Appropriation and Expenses

Type, Title, Scope and Period of Appropriations Appropriations, Adjustments and Use $000

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: 01 July 2010

Expires: 30 June 2015		 Original Appropriation 13,520
Adjustments to 2013/14 (7,091)
Adjustments for 2014/15 (5,727)
Adjusted Appropriation 702
Actual to 2013/14 Year End 102
Estimated Actual for 2014/15 600
Estimated Actual for 2015/16 -
Estimated Appropriation Remaining -

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve covering the guarantee fee subsidy expenses under the Weathertight Services Financial Assistance Package: Loan Guarantee scheme.

End of Year Performance Reporting

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

Reasons for Change in Appropriation

This appropriation decreased by $5.727 million to $600,000 for 2014/15 due to:

  • $5 million for a one-off transfer to Vote Finance for the transaction of state-owned housing with the social housing sector, and
  • $727,000 for a one-off transfer to the new appropriation non-departmental other expense - Weathertight Services: Guarantee Fee Subsidy as this multi-year appropriation expires on 30 June 2015.

Wellington City Council Social Housing Assistance (M9)

Scope of Appropriation

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.

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the upgrading of the Wellington City Council social housing portfolio.

End of Year Performance Reporting

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

Reasons for Change in Appropriation

This appropriation decreased by $3.500 million to $28.500 million to reflect the new work programme and the revised payment schedule.

3.5 - Non-Departmental Capital Expenditure

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

Scope of Appropriation

This appropriation is limited to debt or equity in Housing New Zealand Corporation to acquire, modernise or reconfigure Housing New Zealand Corporation state houses.

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the acquisition, modernisation or reconfiguration of Housing New Zealand Corporation state houses to ensure that they are safe, healthy and affordable homes.

Reasons for Change in Appropriation

This appropriation increased by $1.906 million to $7.206 million for 2014/15 due to a transfer of expenditure from 2013/14 for unexpected delays in project delivery.

Christchurch Housing Developments (M9)

Scope of Appropriation

This appropriation is limited to acquiring, developing and modernising properties to support the development of affordable housing in Christchurch.

Capital Expenditure

  2014/15
  Estimates
$000		 Supplementary Estimates
$000		 Total
$000
Total Appropriation - 13,880 13,880

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve an increase in the supply of temporary and affordable social housing in Christchurch.

End of Year Performance Reporting

An exemption was granted under s15D(2)(b)(iii) of the Public Finance Act as the amount of this annual appropriation for a non-departmental capital expenditure is less than $15 million.

Reasons for Change in Appropriation

This appropriation was established in 2014/15 to allow the Crown to purchase land for development which is currently held by New Zealand Transport Agency for the Awatea Housing Project ($5.285 million), the Welles Street development ($4.095 million) and for the Colombo Street Development ($4.500 million).

Conditions on Use of Appropriation

Reference Conditions
Housing Act 1955 Acquisition of land to be compliant with the Act and approved by the Minister for Building and Housing
Cabinet decisions Use of Christchurch Housing Accord Fund for housing developments in Christchurch to be approved by Joint Ministers

Refinancing of Housing New Zealand Corporation and Housing New Zealand Limited Debt (M90)

Scope of Appropriation

This appropriation is limited to refinancing existing Housing New Zealand Corporation and Housing New Zealand Limited debt.

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the refinancing of the existing Housing New Zealand Corporation and Housing New Zealand Limited debt.

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

Multi-Category Expenses and Capital Expenditure

Policy Advice and Related Outputs (M9)

Overarching Purpose Statement

The 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.

Scope of Appropriation

Departmental Output Expenses

Building and Construction Ministerial Servicing
This category is limited to the provision of support, information and services to the Minister for Building and Construction to enable the Minister to discharge their portfolio responsibilities (other than policy decision making).

Building and Construction Policy
This category is limited to the provision of 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 Building and Construction.

Housing Policy Advice
This category is limited to the provision of 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.

Related Services to Ministers - Building and Housing
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 building and housing including social housing.

Reasons for Change in Appropriation

Building and Construction Policy

This category increased by $375,000 to $2.915 million for 2014/15 due to a transfer from departmental output expense - Weathertight Services to meet cost pressures from increased activity in this area.

Housing Policy Advice

This category increased by $828,000 to $7.742 million for 2014/15 due to:

  • $760,000 transfer from departmental output expense - Weathertight Services to meet cost pressures from increased activity in this area
  • $38,000 transfer from 2013/14 for the Awatea procurement process, and
  • $30,000 transfer from 2013/14 for work on the Tier One Official Statistics on Housing Affordability.