About the Operating Supplement

The Operating Supplement is a funding subsidy paid in addition to the Income-Related Rent Subsidy for eligible net new public houses to help enable new build supply. The Operating Supplement is calculated as a percentage of market rent up to a percentage cap.

In Auckland, Hamilton, Tauranga, Wellington and Christchurch the Operating Supplement cap is 90 per cent of market rent.

In all other locations the cap is 100 per cent of market rent.

Early-stage Operating Supplement funding

CHPs might be eligible to receive early-stage payments of the Operating Supplement (early-stage funding) for new public housing developments that will be delivered before July 2024.

Early-stage funding enables a portion of Operating Supplement funding that would otherwise be paid out to providers over the length of their contract with HUD to be paid in the development and construction stages of a new build project.

This funding is available to support new developments that might otherwise take longer or not go ahead, including where a CHP has a portion of the development capital required but needs a top-up.

More information

For more information about the Operating Supplement and how to access early-stage funding, see our Operating Supplement page.

If you’re a registered CHP, please contact your Business Development Manager or Relationship Manager if you have any questions.

Alternatively, you can email public_housing_panel procurement@hud.govt.nz