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Funding for new public housing places

Community Housing Providers (CHPs) play an important role in delivering public housing places under the Public Housing Plan 2021-2024.

HUD is committed to working in partnership with CHPs to identify and progress opportunities that complement delivery of new public housing by Kāinga Ora – Homes and Communities, in line with the approach set out by the Public Housing Plan.

This approach will enable:

  • greater collaborative partnerships and planning between HUD, Kāinga Ora, Iwi and Māori, CHPs, local government, communities, and the construction industry to support delivery
  • more public housing delivered in regional centres and towns supported by CHPs where they have a presence where housing demand is growing the fastest – alongside delivery in the main centres
  • ensuring the MAIHI framework and a placed-based approach is taken, along with bespoke solutions CHPs may be able to provide to respond to different housing needs – especially for Māori
  • an increase in the number of new build public housing across the sector and a progressive decrease in the proportion of private market homes leased for public housing.

To support this approach, changes have been made to the market rent maxima and operating supplement for CHPs which will enable improved delivery of new supply. Further information about these changes are provided below.

Considering new supply opportunities

When looking at proposals for opportunities to provide new public housing places in partnership with CHPs, we will consider how they align with the approach set out in the Public Housing Plan 2021-2024.

New supply opportunities should:

  • contribute to an increase in New Zealand’s housing supply by meeting additionality criteria set out below, and
  • be retained by CHPs for long-term public housing, primarily through build-to-own developments.

Increasing housing supply

We have developed a set of additionality criteria below for CHPs to show how their proposal complements delivery of new public housing by Kāinga Ora.

We are particularly interested in public housing opportunities that demonstrate:

Where a CHP owns or has access to land for development

This needs to be land already owned by a CHP, or land that is made available by another organisation, for example a parent entity, subsidiary group, or other partner. Land owned by developers may be considered on a case by case basis.

Locations where Kāinga Ora has a limited presence or development pipeline

We will also consider proposals for developments in the focus areas detailed in the Public Housing Plan 2021-2024.

Opportunities which provide bespoke housing solutions to meet the needs of individuals, families and whānau

For example, we are looking for opportunities where CHPs can provide bespoke housing solutions for groups, with an emphasis on Māori, Pacific families, people requiring accessible or multi-generational homes. Proposals will need to demonstrate how the specific needs of this target group can be met by considering housing typology, proximity to appropriate amenities or services; and other factors which would enable positive housing outcomes for the target group.

Innovative delivery models

For example, portfolio-based arrangements could be considered an innovative delivery model if it puts in place financing for several projects at once, and if this financing is in advance of land being identified.

Accessibility and Universal Design Standards

When constructing new build supply, we recognise the need to tailor our design approach to meet a diverse range of household needs, including for individuals and whānau who require accessible homes.

We support and encourage proposals that meet accessibility and universal design standards, and we look forward to partnering with you to provide homes that meet the needs of all New Zealanders.

Read more about standards for accessible homes on the Office for Disability Issues website

Build-to-own developments

Our preference is that new supply of public housing is delivered as build-to-own, where the CHP retains ownership of the place when it is completed. This approach will help to strengthen CHP ability to develop more housing in the future by owning a long-term asset, while ensuring that places funded by Government are more likely to be retained longer-term as public housing.

Where build-to-own opportunities are unable to be progressed, build-to-lease, where the CHP leases the place from the owner, may be appropriate to progress in certain circumstances. These include:

  • Opportunities that are in one of the nine Public Housing Plan focus areas, and
  • Opportunities that will deliver bespoke housing solutions.

Small build-to-lease opportunities will be considered in limited circumstances in Auckland, Wellington and Christchurch, which may be dependent on the partnership arrangement.

We are interested in opportunities that may enable CHPs to deliver different types of housing through mixed models, shared equity or future ownership.

Redirects

From 1 October 2021, we will not be accepting redirects which are existing houses brought into public housing through lease by CHPs, except in limited circumstances.

We may consider accepting opportunities to provide new public housing places through redirects where they:

  • support specific programmes where immediate access to housing and client choice are key service elements, i.e. Housing First, Rapid Rehousing and Creating Positive Pathways.
  • support other initiatives being implemented as part of the Aotearoa Homelessness Action Plan
  • enable CHPs to progress redevelopment opportunities in the short-term

This change will support an increase in the number of new build public housing and a progressive decrease in the proportion of private market homes leased for public housing. 

Existing redirects will be able to be relisted when they become vacant and existing leases will be able to be renewed in line with current practices. Council stock transfers to CHPs will continue to be available when vacancies arise. It is important to HUD that there is no displacement of existing public housing tenants because of this change.

We will continue to engage with CHPs on the impact of these changes to redirects on the sector.

Submitting a proposal

All proposals presented will still be subject to HUD’s standard approval processes and the other evaluation criteria described on the Become a Public Housing Partner page. 

Contact us

If you are a registered Community Housing Provider, please contact your Business Development Manager if you have any questions.

For other new build opportunities, please contact public_housing_panel_at_procurement@hud.govt.nz.

For queries regarding redirects please contact ProviderEnquiries@hud.govt.nz.

Published: July 7, 2021

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