Vote Social Housing - Supplementary Estimates 2018/19

Note 81

From the Estimates of Appropriations 2019/20 in Budget 2019, Vote Social Housing was disestablished and appropriations transferred to two Votes, Vote Housing and Urban Development and Vote Social Development.

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 Appropriations and Forecast Permanent Appropriations#

Titles and Scopes of Appropriations by Appropriation Type	Estimates Budget $000	Supplementary Estimates Budget $000	Total Budget $000
	2018/19
Benefits or Related Expenses
*Accommodation Assistance (M96)* This appropriation is limited to payments for accommodation costs, paid in accordance with criteria set out in, or in delegated legislation made under, the Social Security Act 1964 or any legislation that replaces that Act.	1,507,597	(1,114,604)	392,993
Total Benefits or Related Expenses	1,507,597	(1,114,604)	392,993
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.	23,795	(19,296)	4,499
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.	13,891	(10,418)	3,473
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	(3,078)	1,026
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	(5,800)	-
*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.	59,436	(45,102)	14,334
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.	45,083	(32,803)	12,280
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 or exiting social housing.	11,753	(10,294)	1,459
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	(2,005)	595
*Social Housing Purchasing MCA (M96)* The single overarching purpose of this appropriation is to secure and purchase the provision of social housing.	1,013,271	(749,767)	263,504
Non-Departmental Output Expenses
Purchase of Social Housing Provision This category is limited to purchasing the provision of social housing and related services from social housing providers in accordance with reimbursement agreements or tailored agreements under the Housing Restructuring and Tenancy Matters Act 1992.	977,651	(737,255)	240,396
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.	300	(150)	150
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.	35,320	(12,362)	22,958
*Transitional Housing MCA (M96)* The single overarching purpose of this appropriation is to fund the delivery of transitional housing places in New Zealand.	168,183	(121,465)	46,718
Non-Departmental Output Expenses
Provision of Transitional Housing Places This category is limited to supporting transitional housing providers to provide transitional housing places.	49,894	(35,318)	14,576
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.	49,438	(40,645)	8,793
Non-Departmental Capital Expenditure
Acquisition, Development and Construction of Transitional Housing This category is limited to funding the acquisition, construction and development or redevelopment of land or properties for the purpose of providing transitional housing.	68,851	(45,502)	23,349
Total Multi-Category Expenses and Capital Expenditure	1,264,685	(935,630)	329,055
Total Annual Appropriations and Forecast Permanent Appropriations	2,772,282	(2,050,234)	722,048

Supporting Information#

Part 1 - Vote as a Whole#

1.2 - Trends in the Vote#

Summary of Financial Activity

	2018/19
		Supplementary Estimates
	Estimates $000	Departmental Transactions $000	Non-Departmental Transactions $000	Total Transactions $000	Total $000
Appropriations
Output Expenses	-	-	-	-	-
Benefits or Related Expenses	1,507,597	N/A	(1,114,604)	(1,114,604)	392,993
Borrowing Expenses	-	-	-	-	-
Other Expenses	-	-	-	-	-
Capital Expenditure	-	-	-	-	-
Intelligence and Security Department Expenses and Capital Expenditure	-	-	N/A	-	-
Multi-Category Expenses and Capital Expenditure (MCA)
Output Expenses	1,148,010	(32,803)	(834,080)	(866,883)	281,127
Other Expenses	42,024	-	(17,445)	(17,445)	24,579
Capital Expenditure	74,651	N/A	(51,302)	(51,302)	23,349
Total Appropriations	2,772,282	(32,803)	(2,017,431)	(2,050,234)	722,048
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	-	-	-

1.4 - Reconciliation of Changes in Appropriation Structure#

The establishment of the Ministry of Housing and Urban Development meant that most of the appropriations in Vote Social Housing transferred to Vote Housing and Urban Development, with effect from 1 October 2018, with the remaining appropriations transferring to Vote Social Development from the same date.

Estimates	2018/19 (Estimates) $000	Supplementary Estimates (Changes during the year)	Amount Moved $000	New Structure	2018/19 (Restated) $000
*Vote Social Housing*
Benefits or Related Expenses
Accommodation Assistance	1,507,597	Transferred to Vote Social Development - Accommodation Assistance	(1,114,604)		392,993
Multi-Category Expenses and Capital Expenditure
Community Group Housing MCA
Non-Departmental Output Expenses
Community Group Housing Market Rent Top-Up	13,891	Transferred to Vote Housing and Urban Development - Community Group Housing MCA	(10,418)		3,473
Non-Departmental Other Expenses
Community Housing Rent Relief	4,104	Transferred to Vote Housing and Urban Development - Community Group Housing MCA	(3,078)		1,026
Non-Departmental Capital Expenditure
Acquisition and Improvement of Community Group Housing Properties	5,800	Transferred to Vote Housing and Urban Development - Community Group Housing MCA	(5,800)		-
Social Housing Outcomes Support MCA
Departmental Output Expenses
Services to Support People to Access Accommodation	45,083	Transferred to Vote Social Development - Services to Support People to Access Accommodation	(24,353)		12,280
		Transferred to Vote Housing and Urban Development - Management of Housing Places, Providers and Services	(8,450)
Non-Departmental Output Expenses
Services Related to Supporting Outcomes for those in need of or at risk of needing Social Housing	11,753	Transferred to Vote Housing and Urban Development - Public Housing MCA	(10,294)		1,459
Non-Departmental Other Expenses
Housing Support Package	2,600	Transferred to Vote Social Development - Housing Support Package	(2,005)		595
Social Housing Purchasing MCA
Non-Departmental Output Expenses
Purchase of Social Housing Provision	977,651	Transferred to Vote Housing and Urban Development - Public Housing MCA	(735,255)		240,396
		Transferred to Vote Social Development - Reimbursement of Income Related Rent Overpayments	(2,000)
Services Related to the Provision of Social Housing	300	Transferred to Vote Housing and Urban Development - Public Housing MCA	(150)		150
Non-Departmental Other Expenses
Support for the Provision of Social Housing Supply	35,320	Transferred to Vote Housing and Urban Development - Public Housing MCA	(12,362)		22,958
Transitional Housing MCA
Non-Departmental Output Expenses
Provision of Transitional Housing Places	49,894	Transferred to Vote Housing and Urban Development - Transitional Housing MCA	(35,318)		14,576
Transitional Housing Services	49,438	Transferred to Vote Housing and Urban Development - Transitional Housing MCA	(40,645)		8,793
Non-Departmental Capital Expenditure
Acquisition, Development and Construction of Transitional Housing	68,851	Transferred to Vote Housing and Urban Development - Transitional Housing MCA	(45,502)		23,349
				*Vote Social Development*
				Departmental Output Expenses
		Transferred from Vote Social Housing - Social Housing Outcomes Support MCA	24,353	Services to Support People to Access Accommodation	24,353
				Non-Departmental Output Expenses
		Transferred from Vote Social Housing - Social Housing Outcomes Support MCA	2,005	Housing Support Package	2,005
		Transferred from Vote Social Housing - Social Housing Purchasing MCA	2,000	Reimbursement of Income Related Rent Overpayments	2,000
				Benefits or Related Expenses
		Transferred from Vote Social Housing - Accommodation Assistance	1,114,604	Accommodation Assistance	1,114,604
				*Vote Housing and Urban Development*
				Multi-Category Expenses and Capital Expenditure
				Community Group Housing MCA
				Non-Departmental Output Expenses
		Transferred from Vote Social Housing - Community Group Housing MCA	10,418	Community Group Housing Market Rent Top-Up	10,418
				Non-Departmental Other Expenses
		Transferred from Vote Social Housing - Community Group Housing MCA	3,078	Community Housing Rent Relief	3,078
				Non-Departmental Capital Expenditure
		Transferred from Vote Social Housing - Community Group Housing MCA	5,800	Acquisition and Improvement of Community Group Housing Properties	5,800
				Public Housing MCA
				Non-Departmental Output Expenses
		Transferred from Vote Social Housing - Social Housing Outcomes Support MCA	10,294	Services for People in Need of or at Risk of Needing Public Housing	10,294
		Transferred from Vote Social Housing - Social Housing Purchasing MCA	735,255	Purchase of Public Housing Provision	735,255
		Transferred from Vote Social Housing - Social Housing Purchasing MCA	150	Services Related to the Provision of Public Housing	150
		Transferred from Vote Social Housing - Social Housing Purchasing MCA	12,362	Support for the Provision of Public Housing	12,362
				Transitional Housing MCA
				Non-Departmental Output Expenses
		Transferred from Vote Social Housing - Transitional Housing MCA	35,318	Provision of Transitional Housing Places	35,318
		Transferred from Vote Social Housing - Transitional Housing MCA	40,645	Transitional Housing Services	40,645
				Non-Departmental Capital Expenditure
		Transferred from Vote Social Housing - Transitional Housing MCA	45,502	Acquisition, Development and Construction of Transitional Housing	45,502
				Departmental Output Expenses
		Transferred from Vote Social Housing - Services to Support People to Access Accommodation	8,450	Management of Housing Places, Providers and Services	8,450
Total changes in appropriations	2,772,282		-		2,772,282

Explanations of the reasons for changing the appropriation structure are noted in the details of each appropriation in Parts 2-4.

Part 3 - Details of Non-Departmental Appropriations#

Accommodation Assistance (M96)

Scope of Appropriation

This appropriation is limited to payments for accommodation costs, paid in accordance with criteria set out in, or in delegated legislation made under, the Social Security Act 1964 or any legislation that replaces that Act.

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.

Expenses, Revenue and Capital Expenditure

	2018/19
	Estimates $000	Supplementary Estimates $000	Total $000
Total Appropriation	23,795	(19,296)	4,499
*Non-Departmental Output Expenses*
Community Group Housing Market Rent Top-Up	13,891	(10,418)	3,473
*Non-Departmental Other Expenses*
Community Housing Rent Relief	4,104	(3,078)	1,026
*Non-Departmental Capital Expenditure*
Acquisition and Improvement of Community Group Housing Properties	5,800	(5,800)	-

Reasons for Change in Appropriation

This appropriation decreased by $19.296 million to $4.499 million in 2018/19. This is due to the appropriation transferring to Vote Housing and Urban Development as a result of the establishment of the Ministry of Housing and Urban Development, which commenced operations on 1 October 2018.

Social Housing Outcomes Support (M96)

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 or exiting 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.

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
	2018/19
Non-Departmental Output Expenses
*Services Related to Supporting Outcomes for those in need of or at risk of needing Social Housing*
This category is intended to achieve..
The number of contracted (see Note 1) chronic homeless households (see Note 2) able to be placed and supported into secure and stable (see Note 3) accommodation under the Housing First initiative, will be between	500-600	(87-187)	413

Expenses, Revenue and Capital Expenditure

	2018/19
	Estimates $000	Supplementary Estimates $000	Total $000
Total Appropriation	59,436	(45,102)	14,334
*Departmental Output Expenses*
Services to Support People to Access Accommodation	45,083	(32,803)	12,280
*Non-Departmental Output Expenses*
Services Related to Supporting Outcomes for those in need of or at risk of needing Social Housing	11,753	(10,294)	1,459
*Non-Departmental Other Expenses*
Housing Support Package	2,600	(2,005)	595
Funding for Departmental Output Expenses
*Revenue from the Crown*	45,083	(32,803)	12,280
Services to Support People to Access Accommodation	45,083	(32,803)	12,280

Reasons for Change in Appropriation

This appropriation decreased by $45.102 million to $14.334 million in 2018/19. This is due to:

the transfer of $26.358 million to Vote Social Development due to the establishment of the Ministry of Housing and Urban Development, with commencement of operations from 1 October 2018
the transfer of $18.744 million to Vote Housing and Urban Development due to the establishment of the Ministry of Housing and Urban Development
the transfer of $1.500 million to Vote Social Development for transitional housing services as a result of the establishment of the Ministry of Housing and Urban Development, and
the transfer of $3.512 million to Vote Housing and Urban Development for establishment costs.

The above is offset by a transfer of $5.012 million from 2017/18 to enable the Ministry to secure more supply of public housing and services. This funding was reprioritised during 2018/19 for the transition and establishment costs of the Ministry of Housing and Urban Development.

Social Housing Purchasing (M96)

Overarching Purpose Statement

The single overarching purpose of this appropriation is to secure and purchase the provision of social housing.

Scope of Appropriation

Non-Departmental Output Expenses

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

	2018/19
	Estimates $000	Supplementary Estimates $000	Total $000
Total Appropriation	1,013,271	(749,767)	263,504
*Non-Departmental Output Expenses*
Purchase of Social Housing Provision	977,651	(737,255)	240,396
Services Related to the Provision of Social Housing	300	(150)	150
*Non-Departmental Other Expenses*
Support for the Provision of Social Housing Supply	35,320	(12,362)	22,958

Reasons for Change in Appropriation

This appropriation decreased by $749.767 million to $263.504 million in 2018/19. This is due to the appropriation transferring to Vote Housing and Urban Development as a result of the establishment of the Ministry of Housing and Urban Development, which commenced operations on 1 October 2018.

Transitional Housing (M96)

Overarching Purpose Statement

The single overarching purpose of this appropriation is to fund the delivery of transitional housing places 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 Capital Expenditure

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

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
	2018/19
Non-Departmental Capital Expenditure
*Acquisition, Development and Construction of Transitional Housing*
This category is intended to achieve..
The number of transitional housing places that will be acquired, developed or constructed will be	195-220	(165-190)	30

Expenses, Revenue and Capital Expenditure

	2018/19
	Estimates $000	Supplementary Estimates $000	Total $000
Total Appropriation	168,183	(121,465)	46,718
*Non-Departmental Output Expenses*
Provision of Transitional Housing Places	49,894	(35,318)	14,576
Transitional Housing Services	49,438	(40,645)	8,793
*Non-Departmental Capital Expenditure*
Acquisition, Development and Construction of Transitional Housing	68,851	(45,502)	23,349

Reasons for Change in Appropriation

This appropriation decreased by $121.465 million to $46.718 million in 2018/19. This is due to the appropriation transferring to Vote Housing and Urban Development as a result of the establishment of the Ministry of Housing and Urban Development, which commenced operations on 1 October 2018.

Vote Social Housing - Supplementary Estimates 2018/19

Note 81