The Housing Acceleration Fund
The Housing Acceleration Fund aims to increase the pace and scale of housing supply, particularly of affordable homes for low- to moderate-income households.
The Housing Acceleration Fund will help New Zealand build more houses quickly by:
- creating an Infrastructure Fund to unlock a mix of private sector- and government-led developments in locations facing the biggest housing supply and affordability challenges, including the Kainga Ora large scale projects
- providing additional funding for the Land for Housing programme to
- speed up development on vacant or underutilised Crown-owned land
- operate in more regions
- deliver a broader range of affordable housing options for rental and home ownership.
The $3.8 billion Housing Acceleration Fund will also be complemented by:
- the Kāinga Ora Land Programme, through which Kainga Ora will be supported to borrow $2 billion extra to scale up land acquisition to increase the pace, scale and mix of housing developments (including more affordable housing)
- the $350 million that has already been committed to the Residential Development Response Fund, which will shift from supporting construction activity and jobs through COVID-19 to now focus on supporting the delivery of more affordable housing options for rent and homeownership.
Purpose of the Fund
The infrastructure component of the Housing Acceleration Fund will address some of the underlying barriers to supply by:
- opening up more land for housing development, particularly in locations close to jobs and amenities
- helping to fund critical infrastructure needed for that development,
- allowing for a wider mix of housing that is affordable for low- to moderate-income households to own or rent
- freeing up development-ready land and accelerating housing development to moderate growth in house and land prices.
Who the Fund involves
The Housing Acceleration Fund will enable us to build on existing and emerging relationships with iwi and other key stakeholders in our urban and regional areas, including councils, developers and housing providers.
Cabinet will make decisions on the detailed design of the fund components by 30 June 2021. Government will start discussions with local partners about implementing the Housing Acceleration Fund from mid-2021.
We are unable to provide more detailed information until the fund design has been confirmed by Cabinet. If you would like to be added to the mailing list to receive updates once more detailed decisions have been made, contact us at email@example.com.
Published: March 23, 2021