Income-related rent subsidy
The Income-Related Rent Subsidy (IRRS) is paid by Te Tūāpapa Kura Kāinga - Ministry of Housing and Urban Development (HUD) to public housing landlords, to cover the balance between what a public housing tenant pays in rent and the market rent for the property.
About the IRRS
The majority of public housing tenants pay an income-related rent determined by the Ministry of Social Development, with the amount generally set at 25 percent of their net income.
Te Tūāpapa Kura Kāinga - the Ministry of Housing and Urban Development (HUD) pays the income-related rent subsidy to Kāinga Ora – Homes and Communities and registered Community Housing Providers (CHPs) to cover the balance between the tenant’s rental payment and the market rent for the property.
CHP market rent assessments for new public housing places
The market rent is set according to comparable rent charged for other properties of a similar type, size and location.
The approach to setting market rents for new public housing places changed in July 2022. The weekly rent limits that HUD previously applied have been removed.
HUD will work with CHPs to ensure that market rents for new public housing places are aligned with private market rents. This will improve the feasibility of development opportunities.
To support an application for funding a new development opportunity, CHPs need to supply a current market rent assessment which has been prepared by a registered valuer.
Market rent assessment reports must meet the requirements detailed at Appendix 2 of the Application for Funding Public Housing, including information relating to the number and typology of the new public housing places, underlying assumptions related to the rent assessment, and documented analysis of market evidence.
For existing public housing places, weekly market rent limits will continue to apply until the five-yearly market rent reviews are undertaken in accordance with CHPs’ Capacity Services Agreements.
If you are a registered Community Housing Provider, please contact your Business Development Manager or your Relationship Manager if you have any questions.
Alternatively you can send an enquiry to public_housing_panel firstname.lastname@example.org