Vote Social Housing - Supplementary Estimates 2017/18

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#

Titles and Scopes of Appropriations by Appropriation Type	Estimates Budget $000	Supplementary Estimates Budget $000	Total Budget $000
	2017/18
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#

Accommodation Assistance (M96)

Scope of Appropriation

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.

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#

Scope of Appropriation

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

How Performance will be Assessed and End of Year Reporting Requirements

Performance Measures	Estimates Standard	Supplementary Estimates Standard	Total Standard
	2017/18
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

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.

Scope of Appropriation

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.

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.

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.

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#

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

Scope of Appropriation#

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.

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 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.

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.

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#

Assessment of Performance	Estimates Standard	Supplementary Estimates Standard	Total Standard
	2017/18
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.
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.

Overarching Purpose Statement#

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.

Scope of Appropriation#

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.

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.

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.

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.

Overarching Purpose Statement#

The single overarching purpose of this appropriation is to secure and purchase social housing tenancies for those who are eligible.

Scope of Appropriation#

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.
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 Supply
This 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#

Assessment of Performance	Estimates Standard	Supplementary Estimates Standard	Total Standard
	2017/18
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).

Vote Social Housing - Supplementary Estimates 2017/18

Formats and related files