Formats and related files
Vote Social Housing#
APPROPRIATION MINISTER(S): Minister of Housing and Urban Development (M96)
APPROPRIATION ADMINISTRATOR: Ministry of Social Development
RESPONSIBLE MINISTER FOR MINISTRY OF SOCIAL DEVELOPMENT: Minister for Social Development
Details of Appropriations and Capital Injections#
Annual and Permanent Appropriations#
2017/18 | |||
---|---|---|---|
Titles and Scopes of Appropriations by Appropriation Type | Estimates Budget $000 |
Supplementary Estimates Budget $000 |
Total Budget $000 |
Departmental Output Expenses |
|||
Administering the Legacy Social Housing Fund (M96) This appropriation is limited to the administration costs of the Legacy Social Housing Fund. |
600 | - | 600 |
Total Departmental Output Expenses |
600 | - | 600 |
Benefits or Related Expenses |
|||
Accommodation Assistance (M96) This appropriation is limited to the Accommodation Supplement, Special Transfer Allowance, and Away From Home Allowance to cover accommodation costs, paid in accordance with the criteria set out in the Social Security Act 1964 and delegated legislation made under that Act. |
1,217,767 | 12,795 | 1,230,562 |
Total Benefits or Related Expenses |
1,217,767 | 12,795 | 1,230,562 |
Non-Departmental Other Expenses |
|||
Social Housing Provider Development (M96) This appropriation is limited to providing support to third party providers of social and/or affordable housing services. |
3,926 | 3,246 | 7,172 |
Total Non-Departmental Other Expenses |
3,926 | 3,246 | 7,172 |
Multi-Category Expenses and Capital Expenditure |
|||
Community Group Housing MCA (M96) The 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. |
20,010 | 386 | 20,396 |
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 the Community Group Housing provider and market rent for the leased properties. |
10,106 | - | 10,106 |
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 debt or equity in Housing New Zealand Corporation to acquire, modernise or reconfigure properties leased by Community Housing Providers. |
5,800 | 386 | 6,186 |
Emergency Housing MCA (M96) The single overarching purpose of this appropriation is to fund the delivery of emergency housing places in New Zealand. |
48,544 | 76,698 | 125,242 |
Non-Departmental Output Expenses |
|||
Emergency Housing Services This category is limited to payments to emergency housing providers on a per household basis to cover tenancy and property management; and services to support tenants in emergency housing to move into sustainable housing. |
21,935 | 27,511 | 49,446 |
Provision of Emergency Housing Places This category is limited to supporting emergency housing providers to provide emergency housing places. |
26,609 | 14,290 | 40,899 |
Non-Departmental Other Expenses |
|||
Impairment of Crown Assets Related to Emergency Housing This category is limited to expenses incurred as a result of the impairment of Crown assets related to emergency housing, including write down and write offs. |
- | 2,555 | 2,555 |
Non-Departmental Capital Expenditure |
|||
Acquisition, Development and Construction of Emergency Housing This category is limited to funding the acquisition, construction and development or redevelopment of land or properties for the purpose of providing emergency housing. |
- | 32,342 | 32,342 |
Social Housing Outcomes Support MCA (M96) The single overarching purpose of this appropriation is to operate the social housing register and associated interventions in such a way as to support more people with the greatest housing need into housing, and to move those who are capable of housing independence closer towards that. |
51,383 | 9,925 | 61,308 |
Departmental Output Expenses |
|||
Services to Support People to Access Accommodation This category is limited to assessing and reviewing eligibility for social housing and income related rent, social housing register management and the accurate and timely payment of income related rent subsidies to the social housing provider. |
43,345 | 4,980 | 48,325 |
Non-Departmental Output Expenses |
|||
Services Related to Supporting Outcomes for those in need of or at risk of needing Social Housing This category is limited to the provision of support services to those in need of social housing or those at risk of entering social housing. |
5,438 | 4,945 | 10,383 |
Non-Departmental Other Expenses |
|||
Housing Support Package This category is limited to the provision of incentives, products and services to help households with lower housing need who are in, or seeking social housing, to access or retain alternative housing solutions. |
2,600 | - | 2,600 |
Social Housing Purchasing MCA (M96) The single overarching purpose of this appropriation is to secure and purchase social housing tenancies for those who are eligible. |
900,851 | 34,657 | 935,508 |
Non-Departmental Output Expenses |
|||
Part Payment of Rent to Social Housing Providers This category is limited to the part purchase of tenancies from social housing providers. |
900,451 | (10,985) | 889,466 |
Services Related to the Provision of Social Housing This category is limited to the provision of services related to the provision of social housing by a social housing provider. |
400 | - | 400 |
Non-Departmental Other Expenses |
|||
Support for the Provision of Social Housing Supply This category is limited to providing support to secure access to properties for social housing providers to use for social housing tenancies. |
- | 45,642 | 45,642 |
Total Multi-Category Expenses and Capital Expenditure |
1,020,788 | 121,666 | 1,142,454 |
Total Annual and Permanent Appropriations |
2,243,081 | 137,707 | 2,380,788 |
Supporting Information#
Part 1 - Vote as a Whole#
1.2 - Trends in the Vote
Summary of Financial Activity
2017/18 | |||||
---|---|---|---|---|---|
Supplementary Estimates | |||||
Estimates $000 |
Departmental Transactions $000 |
Non-Departmental Transactions $000 |
Total Transactions $000 |
Total $000 |
|
Appropriations |
|||||
Output Expenses | 600 | - | - | - | 600 |
Benefits or Related Expenses | 1,217,767 | N/A | 12,795 | 12,795 | 1,230,562 |
Borrowing Expenses | - | - | - | - | - |
Other Expenses | 3,926 | - | 3,246 | 3,246 | 7,172 |
Capital Expenditure | - | - | - | - | - |
Intelligence and Security Department Expenses and Capital Expenditure | - | - | N/A | - | - |
Multi-Category Expenses and Capital Expenditure (MCA) | |||||
Output Expenses | 1,008,284 | 4,980 | 35,761 | 40,741 | 1,049,025 |
Other Expenses | 6,704 | - | 48,197 | 48,197 | 54,901 |
Capital Expenditure | 5,800 | N/A | 32,728 | 32,728 | 38,528 |
Total Appropriations |
2,243,081 | 4,980 | 132,727 | 137,707 | 2,380,788 |
Crown Revenue and Capital Receipts |
|||||
Tax Revenue | - | N/A | - | - | - |
Non-Tax Revenue | - | N/A | - | - | - |
Capital Receipts | - | N/A | - | - | - |
Total Crown Revenue and Capital Receipts |
- | N/A | - | - | - |
Part 3 - Details of Non-Departmental Appropriations#
3.2 - Non-Departmental Benefits or Related Expenses#
Accommodation Assistance (M96)
Scope of Appropriation
Reasons for Change in Appropriation
This appropriation increased by $12.795 million to $1,230.562 million in 2017/18. This is due to:
- $22.300 million for the supplementary estimates add-on to reduce the likelihood of an overspend
- $5.317 million for the impact of policy mainly as a result of increasing the maximum payment rates from 1 April 2018 under the Families Package, and
- $3.112 million for a higher average payment rate of Accommodation Supplement, reflecting an update for recent trends.
Partly offsetting the above factors is:
- $17.934 million due to a lower number of Accommodation Supplement recipients.
3.4 - Non-Departmental Other Expenses#
Social Housing Provider Development (M96)#
Scope of Appropriation
How Performance will be Assessed and End of Year Reporting Requirements
2017/18 | |||
---|---|---|---|
Performance Measures | Estimates Standard |
Supplementary Estimates Standard |
Total Standard |
Allocation of any remaining funding from the 2012-2015 Social Housing Fund. |
All funding allocated. | All funding allocated. | All funding allocated. |
End of Year Performance Reporting
Performance information for this appropriation will be reported by the Ministry of Social Development in the Vote Social Housing Non-Departmental Appropriations Report.
Reasons for Change in Appropriation
This appropriation increased by $3.246 million to $7.172 million in 2017/18. This is due to:
- $7.246 million for an Expense and Capital Transfer from Vote Building and Housing to Vote Social Housing from 2016/17 to 2017/18 due to delays in the building process impacting on the timing of several grant payments.
The above offset by:
- $4 million for an Expense and Capital Transfer from Vote Social Housing to Vote Building and Housing from 2017/18 to 2018/19 to recognise and transfer this appropriation to the Vote that best aligns with departmental roles and responsibilities from 1 July 2018.
Part 4 - Details of Multi-Category Expenses and Capital Expenditure#
Multi-Category Expenses and Capital Expenditure#
Community Group Housing (M96)
Overarching Purpose Statement
Scope of Appropriation
Non-Departmental Output Expenses
Community Group Housing Market Rent Top-UpThis category is limited to the provision of funding to Housing New Zealand Corporation to pay the difference between the contracted rent with the Community Group Housing provider and market rent for the leased properties.
Non-Departmental Other Expenses
Community Housing Rent ReliefThis 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.
Non-Departmental Capital Expenditure
Acquisition and Improvement of Community Group Housing PropertiesThis category is limited to debt or equity in Housing New Zealand Corporation to acquire, modernise or reconfigure properties leased by Community Housing Providers.
Reasons for Change in Appropriation
This appropriation increased by $386,000 to $20.396 million in 2017/18. This is due to a Capital Transfer from Vote Building and Housing to Vote Social Housing from 2016/17 to 2017/18. The reason for the transfer was due to the completion date of the Mangere redevelopment project shifting by 12 months.
Emergency Housing (M96)#
Overarching Purpose Statement#
Scope of Appropriation#
Non-Departmental Output Expenses
Emergency Housing ServicesThis category is limited to payments to emergency housing providers on a per household basis to cover tenancy and property management; and services to support tenants in emergency housing to move into sustainable housing.
Provision of Emergency Housing Places
This category is limited to supporting emergency housing providers to provide emergency housing places.
Non-Departmental Other Expenses
Impairment of Crown Assets Related to Emergency HousingThis category is limited to expenses incurred as a result of the impairment of Crown assets related to emergency housing, including write down and write offs.
Non-Departmental Capital Expenditure
Acquisition, Development and Construction of Emergency HousingThis category is limited to funding the acquisition, construction and development or redevelopment of land or properties for the purpose of providing emergency housing.
Expenses, Revenue and Capital Expenditure#
2017/18 | |||
---|---|---|---|
Estimates $000 |
Supplementary Estimates $000 |
Total $000 |
|
Total Appropriation |
48,544 | 76,698 | 125,242 |
Non-Departmental Output Expenses |
|||
Emergency Housing Services | 21,935 | 27,511 | 49,446 |
Provision of Emergency Housing Places | 26,609 | 14,290 | 40,899 |
Non-Departmental Other Expenses |
|||
Impairment of Crown Assets Related to Emergency Housing | - | 2,555 | 2,555 |
Non-Departmental Capital Expenditure |
|||
Acquisition, Development and Construction of Emergency Housing | - | 32,342 | 32,342 |
What is Intended to be Achieved with each Category and How Performance will be Assessed#
2017/18 | |||
---|---|---|---|
Assessment of Performance | Estimates Standard |
Supplementary Estimates Standard |
Total Standard |
Non-Departmental Other Expenses |
|||
Impairment of Crown Assets Related to Emergency Housing |
|||
This category is intended to achieve recognition of the expense so that the asset is valued in accordance with generally accepted accounting practice. |
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An exemption was granted under s15D(2)(b)(iii) of the Public Finance Act as the amount of the annual appropriation for a non-departmental other expense is less than $5 million. |
Exempted | Exempted | Exempted |
Non-Departmental Capital Expenditure |
|||
Acquisition, Development and Construction of Emergency Housing |
|||
This category is intended to achieve an increase in the supply of emergency housing places. |
|||
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. |
Exempted | Exempted | Exempted |
Reasons for Change in Appropriation#
This appropriation increased by $76.698 million to $125.242 million in 2017/18. This is due to:
- $42.620 million from a fiscally neutral transfer from the Social Housing Purchasing MCA for Winter 2018 Response Funding Arrangements. This includes funding for 116 short-term contracted places with support services and other emergency housing services ($27.723 million), 64 long-term transitional housing places with support services ($12.342 million) and an impairment expense due to a change in the assumed repayment profile of a Housing New Zealand Corporation property ($2.555 million)
- $20 million for Transitional Housing places. This is a new loan established for the Housing New Zealand Corporation to acquire/develop transitional housing places across New Zealand with the loan to be repaid within ten years, and
- $14.078 million Expense and Capital transfer from 2016/17 to 2017/18 due to contractual delays in securing supply of emergency housing places with community providers.
Social Housing Outcomes Support (M96)#
Overarching Purpose Statement#
Scope of Appropriation#
Departmental Output Expenses
Services to Support People to Access AccommodationThis category is limited to assessing and reviewing eligibility for social housing and income related rent, social housing register management and the accurate and timely payment of income related rent subsidies to the social housing provider.
Non-Departmental Output Expenses
Services Related to Supporting Outcomes for those in need of or at risk of needing Social HousingThis category is limited to the provision of support services to those in need of social housing or those at risk of entering social housing.
Non-Departmental Other Expenses
Housing Support PackageThis category is limited to the provision of incentives, products and services to help households with lower housing need who are in, or seeking social housing, to access or retain alternative housing solutions.
Reasons for Change in Appropriation#
This appropriation increased by $9.925 million to $61.308 million in 2017/18. This is due to:
- $6.295 million for an Expense and Capital Transfer from 2016/17 to 2017/18 due to delays with building the Ministry's capability and capacity to implement an investment approach to social housing as well as other contractual delays
- $2.450 million from a fiscally neutral transfer from the Social Housing Purchasing MCA for the Winter 2018 Response Funding Arrangements; this funding is for up to 50 additional Housing First places
- $938,000 for the Housing First Expansion
- $103,000 for Modernising Frontline Tools
- $87,000 for Availability and Resilience Business case implementation, and
- $52,000 reflecting the movement of asset revaluations at the Ministry of Social Development where departmental baselines are fully adjusted for capital charge increases.
Social Housing Purchasing (M96)#
Overarching Purpose Statement#
Scope of Appropriation#
Non-Departmental Output Expenses
Part Payment of Rent to Social Housing ProvidersThis category is limited to the part purchase of tenancies from social housing providers.
Services Related to the Provision of Social Housing
This category is limited to the provision of services related to the provision of social housing by a social housing provider.
Non-Departmental Other Expenses
Support for the Provision of Social Housing SupplyThis category is limited to providing support to secure access to properties for social housing providers to use for social housing tenancies.
Expenses, Revenue and Capital Expenditure#
2017/18 | |||
---|---|---|---|
Estimates $000 |
Supplementary Estimates $000 |
Total $000 |
|
Total Appropriation |
900,851 | 34,657 | 935,508 |
Non-Departmental Output Expenses |
|||
Part Payment of Rent to Social Housing Providers | 900,451 | (10,985) | 889,466 |
Services Related to the Provision of Social Housing | 400 | - | 400 |
Non-Departmental Other Expenses |
|||
Support for the Provision of Social Housing Supply | - | 45,642 | 45,642 |
What is Intended to be Achieved with each Category and How Performance will be Assessed#
2017/18 | |||
---|---|---|---|
Assessment of Performance | Estimates Standard |
Supplementary Estimates Standard |
Total Standard |
Non-Departmental Other Expenses |
|||
Support for the Provision of Social Housing Supply |
|||
This category is intended to achieve an increase in social housing places through the provision of payments to secure access to properties for social housing providers. |
|||
The number of income-related rent subsidy places contracted from community housing providers will be no less than |
4,500 | 4,500 | 4,500 |
The number of income-related rent subsidy places contracted from Housing New Zealand will be no less than |
57,500 | 57,500 | 57,500 |
Reasons for Change in Appropriation#
This appropriation increased by $34.657 million to $935.508 million in 2017/18. This is due to:
- $77.345 million Expense and Capital Transfer from 2016/17 to 2017/18 to support contractual obligations towards securing additional social housing places in Auckland
- $1.649 million for the Families Package, and
- $733,000 for the Housing First Expansion.
The above is offset by:
- $45.070 million for a fiscally neutral transfer for Winter 2018 Response Funding Arrangements to the Emergency Housing MCA ($42.620 million) and the Social Housing Outcomes Support MCA ($2.450 million).