The Housing Acceleration Fund
The Government has committed an initial $3.8 billion to the Housing Acceleration Fund (the Fund).
The $3.8 billion is additional to the $350 million that has already been committed to the Residential Development Response Fund.
The Fund aims to increase the supply of houses, particularly affordable homes that low to moderate income households can afford (whether for rent or home ownership), is critical to addressing New Zealand’s housing affordability issues.
The Fund will be focused on priority locations where high housing need has been identified including Kāinga Ora large scale projects.
The Housing Acceleration Fund will increase the pace and scale of housing delivery by:
- an Infrastructure Fund to unlock a mix of private sector led and government led developments in locations facing the biggest housing supply and affordability challenges
- additional funding for the Land for Housing Programme to accelerate development of vacant or underutilised Crown owned land, operate in more regions, and deliver a broader range of affordable housing options for rental and home ownership
- A Kāinga Ora Land Programme for strategic land purchases to increase the pace, scale and mix of housing developments (including more affordable housing).
Purpose of the Fund
The Housing Acceleration Fund will address some of the underlying barriers to supply, increasing the pace and scale of housing delivery, by:
- buying and opening up more land for housing development, particularly in locations close to jobs and amenities
- helping to fund critical infrastructure needed for that development, and
- supporting delivery of a wider mix of housing (ownership and rental) that is affordable for low to moderate income households.
- Bringing forward the supply of development ready land and accelerating housing development can also help put downward pressure on existing house and land prices.
Who the Fund involves
The government Fund will build on existing relationships in our urban and regional areas. It will work closely with iwi partners and key stakeholders in these priority locations, including councils, developers and housing providers, to identify the detailed mix of investment needed in each location, and how the Government, Councils and others will contribute.
Cabinet will make decisions on the detailed design of the Fund components by 30 June 2021 Government will start detailed implementation discussions with councils from mid-2021.
If you are involved in projects with build-ready land to increase the supply of affordable housing and would like more information, contact us at firstname.lastname@example.org.
Published: March 23, 2021