Supplementary estimates of appropriations

Vote Housing - Supplementary Estimates 2013/14

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Superseded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
Copyright:
© Crown Copyright, Attribution 4.0 International (CC BY 4.0)
Fiscal year:
2013/14
Budget year:
2014
Budget vote:
Housing

Formats and related files

APPROPRIATION MINISTER(S): Minister for Building and Construction (M9), Minister of Housing (M37)

APPROPRIATION ADMINISTRATOR: Ministry of Business, Innovation and Employment

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

Supplementary Estimates of Appropriations#

Details of Appropriations#

Annual and Permanent Appropriations

  2013/14
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.		 17,965 11,307 29,272

Canterbury Earthquakes: Building and Housing Assistance (M37)

This appropriation is limited to the co-ordination, management and delivery of the overall Departmental response programme, and the delivery of accommodation matching and placement services to people displaced by the Canterbury earthquakes.		 4,170 120 4,290

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.		 9,948 (284) 9,664

Policy Advice and Related Outputs MCOA (M9)

 9,711 960 10,671
MCOA - Building and Construction Ministerial Servicing
This output class 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).		 292 - 292
MCOA - Building and Construction Policy
This output class 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.		 2,631 - 2,631
MCOA - Housing Policy Advice
This output class 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.		 6,788 960 7,748

Residential Tenancy and Unit Title Services (M37)

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.		 22,232 1,050 23,282

Social Housing Unit (M37)

This appropriation is limited to the administration costs of the Social Housing Unit.		 2,650 - 2,650

Special Housing Areas (M37)

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.		 4,200 (2,000) 2,200

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.		 29,832 (17,500) 12,332

Total Departmental Output Expenses

 100,708 (6,347) 94,361

Non-Departmental Output Expenses

      

Canterbury Earthquakes: Emergency and Temporary Accommodation (M37)

This appropriation is limited to operating expenses incurred on emergency and temporary accommodation for people displaced by the Canterbury earthquakes.		 3,350 86 3,436

HNZC Housing Support Services (M37)

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.		 16,309 2,214 18,523

Income Related Rent Subsidy for Community Housing Providers (M37)

This appropriation is limited to the purchase of housing and related services delivered by approved Community Housing providers to individuals who are eligible for an income related rent, assessed as the difference in price between the amounts of market rents for the housing provided by the approved Community Housing providers and the income related rents charged.		 2,900 (2,900) -

Kāinga Whenua Infrastructure Grant (M37)

This appropriation is limited to infrastructure associated with housing development on Maori land.		 - 3,000 3,000

Management of Crown Properties held under the Housing Act 1955 (M37)

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

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

This appropriation is limited to the purchase of housing and related services delivered by Housing New Zealand Corporation to individuals who are eligible for an income related rent, assessed as the difference in price between the amounts of market rents for the housing provided by the Corporation and the income related rents charged.		 662,227 (134,194) 528,033

Tamaki Regeneration (M37)

This appropriation is limited to providing operating funding for Tamaki Regeneration.		 - 3,431 3,431

Total Non-Departmental Output Expenses

 686,181 (128,363) 557,818

Benefits and Other Unrequited Expenses

      

Housing Assistance (M37)

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 (M37)

To enable the provision of the KiwiSaver deposit subsidy for people who meet the required eligibility criteria.		 19,001 7,436 26,437

Total Benefits and Other Unrequited Expenses

 20,496 7,436 27,932

Non-Departmental Other Expenses

      

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

Increase in Debt Provision (M37)

Increase in provision for doubtful debts on Income Related Rents Crown Debt.		 8,000 13,700 21,700

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.		 900 - 900

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.		 5,330 - 5,330

Wellington City Council Social Housing Assistance (M37)

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.		 28,000 - 28,000

Total Non-Departmental Other Expenses

 46,334 13,700 60,034

Non-Departmental Capital Expenditure

      

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

This appropriation is limited to acquiring, developing and modernising properties under the Housing Act 1955.		 2,000 38,327 40,327

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.		 5,800 500 6,300

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

This appropriation is limited to capital expenditure incurred on emergency and temporary accommodation for people displaced by the Canterbury earthquakes.		 - 7,992 7,992

Refinancing of Housing New Zealand Corporation and Housing New Zealand Limited Debt (M37)

This appropriation is limited to refinancing existing Housing New Zealand Corporation and Housing New Zealand Limited debt.		 210,238 - 210,238

Total Non-Departmental Capital Expenditure

 218,038 46,819 264,857

Total Annual and Permanent Appropriations

 1,071,757 (66,755) 1,005,002

Multi-Year Appropriations

Type, Title, Scope and Period of Appropriations Appropriation, 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 for 2012/13 35,188
Adjustments to 2013/14 6,000
Adjusted Appropriation 145,288
Actual to 2012/13 Year End 16,466
Estimated Actual for 2013/14 56,862
Estimated Actual for 2014/15 33,000
Estimated Appropriation Remaining 38,960

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 for 2012/13 (100)
Adjustments to 2013/14 (6,991)
Adjusted Appropriation 6,429
Actual to 2012/13 Year End 102
Estimated Actual for 2013/14 1,898
Estimated Actual for 2014/15 4,429
Estimated Appropriation Remaining -

Supporting Information#

Part 1 - Vote as a Whole#

1.2 - Trends in the Vote

Summary of Financial Activity

  2013/14
    Supplementary Estimates  
  Estimates
$000		 Departmental
Transactions
$000		 Non-Departmental
Transactions
$000		 Total
Transactions
$000		 Total
$000

Appropriations

          
Output Expenses 786,889 (6,347) (128,363) (134,710) 652,179
Benefits and Other Unrequited Expenses 20,496 N/A 7,436 7,436 27,932
Borrowing Expenses - - - - -
Other Expenses 86,934 - 70,820 70,820 157,754
Capital Expenditure 218,038 - 46,819 46,819 264,857
Intelligence and Security Department Expenses and Capital Expenditure - - N/A - -
Multi-Category Expenses and Capital Expenditure (MCA)          
Output Expenses
 - - - - -
Other Expenses
 - - - - -
Capital Expenditure
 - N/A - - -

Total Appropriations

 1,112,357 (6,347) (3,288) (9,635) 1,102,722

Crown Revenue and Capital Receipts

          
Tax Revenue - N/A - - -
Non-Tax Revenue 196,100 N/A - - 196,100
Capital Receipts - N/A - - -

Total Crown Revenue and Capital Receipts

 196,100 N/A - - 196,100

Mapping the Layout of the 2013/14 Supplementary Estimates to the Layout of the 2013/14 Estimates

Supplementary Estimates Structure 2013/14 Estimates Structure 2013/14
Part # Part Name Part # Part Name
2.1 Departmental Output Expenses 2.1 Departmental Output Expenses
2.2 Departmental Other Expenses 5.1 Departmental Other Expenses
2.3 Departmental Capital Expenditure and Capital Injections 6.1 Departmental Capital Expenditure
3.1 Non-Departmental Output Expenses 2.2 Non-Departmental Output Expenses
3.2 Non-Departmental Benefits and Other Unrequited Expenses 3.2 Non-Departmental Benefits and Other Unrequited Expenses
3.3 Non-Departmental Borrowing Expenses 4.2 Non-Departmental Borrowing Expenses
3.4 Non-Departmental Other Expenses 5.2 Non-Departmental Other Expenses
3.5 Non-Departmental Capital Expenditure 6.2 Non-Departmental Capital Expenditure
4 Multi-Category Expenses and Capital Expenditure N/A Did not exist in the Estimates

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

  2013/14
  Estimates
$000		 Supplementary
Estimates
$000		 Total
$000
Total Appropriation 17,965 11,307 29,272
Revenue from the Crown 2,122 188 2,310
Revenue from Others 19,876 4,893 24,769

Reasons for Change in Appropriation

This appropriation increased by $11.307 million to $29.272 million for 2013/14. The increase relates to:

  • $1.660 million in 2013/14 as a result of an expense transfer from 2012/13 for the roll out of the media campaign to progress the Building Act Reform legislative programme
  • $2.938 million in 2013/14 as a result of an expense transfer from 2012/13 for the roll out of the building system improvement programme to implement the Canterbury Earthquakes Royal Commission recommendations
  • $800,000 in 2013/14 as a result of an expense transfer from 2012/13 for the programme of work with Canterbury Earthquake Recovery Authority for post disaster building management
  • $80,000 in 2013/14 as a result of an expense transfer from 2012/13 for the Christchurch Housing Showcase Design Competition
  • $125,000 in 2013/14 as a result of a fiscally neutral transfer with central and local government agencies to set up a Build Back Smarter Service for Canterbury home owners
  • $90,000 in 2013/14 as a result of a fiscally neutral transfer for the Productivity Partnership Programme to cover costs for running the Auckland Procurement Forum, and
  • $6.226 million in 2013/14 as a result of a fiscally neutral transfer for additional costs related to the Canterbury Rebuild ($661,000) and the implementation of the Royal Commission Recommendations and National Building Consent System ($5.565 million).

The increases were offset by $612,000 in 2013/14 as a result of a return of savings to the Crown due to cessation of funding for the Building Energy Efficiency Study.

Canterbury Earthquakes: Building and Housing Assistance (M37)

Scope of Appropriation

This appropriation is limited to the co-ordination, management and delivery of the overall Departmental response programme, and the delivery of accommodation matching and placement services to people displaced by the Canterbury earthquakes.

Expenses and Revenue

  2013/14
  Estimates
$000		 Supplementary
Estimates
$000		 Total
$000
Total Appropriation 4,170 120 4,290
Revenue from the Crown 4,170 120 4,290
Revenue from Others - - -

Reasons for Change in Appropriation

This appropriation increased by $120,000 to $4.290 million for 2013/14. The increase relates to $970,000 in 2013/14 as a result of an expense transfer from 2012/13 due to changes in programme scope for the sequencing of some integration projects such as data modelling and analysis.

The increase was offset by $850,000 in 2013/14 as a result of a fiscally neutral adjustment across votes and appropriations administered by MBIE to reflect the introduction of one cost allocation methodology following the establishment of MBIE and implementation of the organisation's management structure.

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

  2013/14
  Estimates
$000		 Supplementary
Estimates
$000		 Total
$000
Total Appropriation 9,948 (284) 9,664
Revenue from the Crown - - -
Revenue from Others 9,526 (284) 9,242

Reasons for Change in Appropriation

This appropriation decreased by $284,000 to $9.664 million for 2013/14. The decrease relates to a technical change for an equity transfer decreasing the capital charge on the licensed building practitioners memorandum account.

Policy Advice and Related Outputs MCOA (M9)

Scope of Appropriation

MCOA - Building and Construction Ministerial Servicing

This output class 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).

MCOA - Building and Construction Policy

This output class 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.

MCOA - Housing Policy Advice

This output class 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.

MCOA - Housing, Ministerial Servicing and Performance and Monitoring

This output class is limited to the provision of support, information and services to the Minister of Housing to enable the Minister to discharge their portfolio responsibilities (other than policy decision making).

Explanation for Use of Multi-Class Output Expense Appropriation

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

Expenses and Revenue

  2013/14
  Estimates
$000		 Supplementary
Estimates
$000		 Total
$000

Total Appropriation

 9,711 960 10,671
MCOA - Building and Construction Ministerial Servicing 292 - 292
MCOA - Building and Construction Policy 2,631 - 2,631
MCOA - Housing Policy Advice 6,788 960 7,748
MCOA - Housing, Ministerial Servicing and Performance and Monitoring - - -

Revenue from the Crown

 9,711 840 10,551
MCOA - Building and Construction Ministerial Servicing 292 - 292
MCOA - Building and Construction Policy 2,631 - 2,631
MCOA - Housing Policy Advice 6,788 840 7,628
MCOA - Housing, Ministerial Servicing and Performance and Monitoring - - -

Revenue from Others

 - 120 120
MCOA - Building and Construction Ministerial Servicing - - -
MCOA - Building and Construction Policy - - -
MCOA - Housing Policy Advice - 120 120
MCOA - Housing, Ministerial Servicing and Performance and Monitoring - - -

Reasons for Change in Appropriation

MCOA - Housing Policy Advice

This appropriation increased by $960,000 to $7.748 million for 2013/14. The increase relates to:

  • $840,000 in 2013/14 as a result of an expense transfer from 2012/13 for the social housing programme funding for the development of products to support Pathways to Independence; development of a contestable market for social housing providers and to support the transfer of Crown assets to the Tamaki Regeneration project
  • $900,000 in 2013/14 as a result of a fiscally neutral adjustment from Vote Statistics for the compilation of the Tier One Official Statistics on Housing Affordability, and
  • $120,000 in 2013/14 as a result of a fiscally neutral adjustment to provide advice to joint Ministers on Housing New Zealand Corporation (HNZC) divestment, building a social housing market, and products to assist groups of HNZC tenants to housing independence.

The increases were offset by:

  • $600,000 as a result of an expense transfer from 2013/14 evenly spread across 2014/15 and 2015/16 to phase the work for the Tier One Official Statistics on Housing Affordability, and
  • $300,000 in 2013/14 as a result of a fiscally neutral adjustment across votes and appropriations administered by MBIE to reflect the introduction of one cost allocation methodology following the establishment of MBIE and implementation of the organisation's management structure.

Residential Tenancy and Unit Title Services (M37)

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

  2013/14
  Estimates
$000		 Supplementary
Estimates
$000		 Total
$000
Total Appropriation 22,232 1,050 23,282
Revenue from the Crown - - -
Revenue from Others 18,655 1,050 19,705

Reasons for Change in Appropriation

This appropriation increased by $1.050 million to $23.282 million for 2013/14. The increase relates to a fiscally neutral adjustment across votes and appropriations by MBIE to reflect the introduction of one cost allocation methodology following the establishment of MBIE and implementation of the organisation's management structure.

Special Housing Areas (M37)

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

  2013/14
  Estimates
$000		 Supplementary
Estimates
$000		 Total
$000
Total Appropriation 4,200 (2,000) 2,200
Revenue from the Crown 2,200 - 2,200
Revenue from Others 2,000 (2,000) -

Reasons for Change in Appropriation

This appropriation decreased by $2 million to $2.200 million for 2013/14. The decrease is because revenue is not expected in 2013/14 as implementation of the development scheme in areas covered by housing accords was only made during 2013/14 and this decrease is the consequential expenditure impact.

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

  2013/14
  Estimates
$000		 Supplementary
Estimates
$000		 Total
$000
Total Appropriation 29,832 (17,500) 12,332
Revenue from the Crown 29,832 (17,500) 12,332
Revenue from Others 113 - 113

Reasons for Change in Appropriation

This appropriation decreased by $17.500 million to $12.332 million for 2013/14. The decrease relates to:

  • $2.500 million for a fiscally neutral transfer to Vote Energy to contribute towards the cost of exploring the access tunnel known as the "The Drift" at the Pike River Coal Mine
  • $462,000 for a fiscally neutral transfer to non-departmental output expense HNZC Housing Support Services for an increase to the administrative support for the KiwiSaver first-home deposit subsidy
  • $1.942 million for a fiscally neutral transfer to Vote Finance for additional resource for social housing work, and
  • $12.596 million for a fiscally neutral transfer to Vote Customs for reducing import barriers in the residential construction sector.

Part 3 - Details of Non-Departmental Appropriations#

3.1 - Non-Departmental Output Expenses

Canterbury Earthquakes: Emergency and Temporary Accommodation (M37)

Scope of Appropriation

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

Reasons for Change in Appropriation

This appropriation increased by $86,000 to $3.436 million for 2013/14. The increase relates to an expense transfer from 2012/13 for the purchase of whiteware and other fixtures for Rangers Park houses.

HNZC Housing Support Services (M37)

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.

Reasons for Change in Appropriation

This appropriation increased by $2.214 million to $18.523 million for 2013/14. The increase relates to:

  • $4 million in 2013/14 as a result of increased funding by expanding the Welcome Home Loan to assist first home buyers, and
  • $1.214 million in 2013/14 as a result of a fiscally neutral adjustment from Vote Social Development to contribute to Community Group Housing.

The increases are offset by $3 million in 2013/14 as a result of a fiscally neutral adjustment of the Kāinga Whenua Infrastructure Grant to non-departmental output expense Kāinga Whenua Infrastructure Grant as administration of the Grant has transferred from Housing New Zealand Corporation to the Ministry of Business, Innovation and Employment.

Income Related Rent Subsidy for Community Housing Providers (M37)

Scope of Appropriation

This appropriation is limited to the purchase of housing and related services delivered by approved Community Housing providers to individuals who are eligible for an income related rent, assessed as the difference in price between the amounts of market rents for the housing provided by the approved Community Housing providers and the income related rents charged.

Reasons for Change in Appropriation

This appropriation decreased by $2.900 million to zero for 2013/14. The decrease relates to a fiscally neutral transfer to Vote Social Development.

Kāinga Whenua Infrastructure Grant (M37)

Scope of Appropriation

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

Expenses

  2013/14
  Estimates
$000		 Supplementary Estimates
$000		 Total
$000
Total Appropriation - 3,000 3,000

Reasons for Change in Appropriation

This appropriation was established in 2013/14 by a fiscally neutral transfer from non-departmental output expense HNZC Housing Support Services.

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

Scope of Appropriation

This appropriation is limited to the purchase of housing and related services delivered by Housing New Zealand Corporation to individuals who are eligible for an income related rent, assessed as the difference in price between the amounts of market rents for the housing provided by the Corporation and the income related rents charged.

Reasons for Change in Appropriation

This appropriation decreased by $134.194 million to $528.033 million for 2013/14. The decrease relates to $141.667 million as a result of a fiscally neutral adjustment for the transfer of this function to Vote Social Development from 14 April 2014.

The decrease was offset by $7.473 million as a result of a forecast change for an increase in tenants receiving income related rent and likely property movements that allow for divesting in areas of low need and increasing in areas of high need.

Tamaki Regeneration (M37)

Scope of Appropriation

This appropriation is limited to providing operating funding for Tamaki Regeneration.

Expenses

  2013/14
  Estimates
$000		 Supplementary Estimates
$000		 Total
$000
Total Appropriation - 3,431 3,431

Reasons for Change in Appropriation

This appropriation was established in 2013/14 to provide the Tamaki Redevelopment Company to undertake housing demonstration projects and associated regeneration activity.

3.2 - Non-Departmental Benefits and Other Unrequited Expenses

KiwiSaver Deposit Subsidy (M37)

Scope of Appropriation

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

Reasons for Change in Appropriation

This appropriation increased by $7.436 million to $26.437 million for 2013/14. The increase relates to:

  • $6 million in 2013/14 for increased funding by refining KiwiSaver first home deposit subsidy to assist first home buyers, and
  • $1.436 million in 2013/14 as a result of a forecast change to reflect updated demand forecasts by Housing New Zealand Corporation.

3.4 - Non-Departmental Other Expenses

Increase in Debt Provision (M37)

Scope of Appropriation

Increase in provision for doubtful debts on Income Related Rents Crown Debt.

Reasons for Change in Appropriation

This appropriation increased by $13.700 million to $21.700 million in 2013/14. The increase relates to $15.400 million in 2013/14 as a result of a forecast change for the calculated provision of debt.

The increase is offset by $1.700 million in 2013/14 as a result of a fiscally neutral adjustment for the transfer of the function to Vote Social Development from 14 April 2014.

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 2012/13 35,188
Adjustments for 2013/14 6,000
Adjusted Appropriation 145,288
Actual to 2012/13 Year End 16,466
Estimated Actual for 2013/14 56,862
Estimated Actual for 2014/15 33,000
Estimated Appropriation Remaining 38,960

Reasons for Change in Appropriation

The increase for 2012/13 relates to funding for social housing on the Chatham Islands ($400,000) and a fiscally neutral transfer from non-departmental other expenses Social Housing Fund ($34,788). The increase for 2013/14 relates to a one-off payment to cover the Queenstown Lakes Community Housing Trust's tax liability as agreed by Cabinet on 29 October 2013.

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 2012/13 (100)
Adjustments for 2013/14 (6,991)
Adjusted Appropriation 6,429
Actual to 2012/13 Year End 102
Estimated Actual for 2013/14 1,898
Estimated Actual for 2014/15 4,429
Estimated Appropriation Remaining -

Reasons for Change in Appropriation

The decrease for 2013/14 relates to a fiscally neutral transfer to support a budget initiative in Vote Customs for reducing import barriers in the residential construction sector.

3.5 - Non-Departmental Capital Expenditure

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

Scope of Appropriation

This appropriation is limited to acquiring, developing and modernising properties under the Housing Act 1955.

Reasons for Change in Appropriation

This appropriation increased by $38.327 million to $40.327 million for 2013/14. The increase relates to:

  • $30.600 million as a result of increased funding to transfer the remaining 16.55 hectares of New Zealand Defence Force land to Hobsonville Land Company at the agreed valuation on the settlement date, and
  • $7.727 million as a result of a capital transfer from 2012/13 for the Hobsonville Urban Development programme.

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.

Reasons for Change in Appropriation

This appropriation increased by $500,000 to $6.300 million for 2013/14. The increase relates to $3 million as a result of a capital transfer from 2012/13 for delivery of the community housing standard acquisitions

The increase was offset by $2.500 million as a result of a capital transfer from 2013/14 to 2014/15 due to lease negotiations and certification delays for four major projects.

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

Scope of Appropriation

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

Reasons for Change in Appropriation

This appropriation increased from zero to $7.992 million in 2013/14. This is due to a capital transfer from 2012/13 for the initial land purchase of Rangers Park.