Source: New Zealand Government
A fund to stop targeted housing projects from falling over, will soon be open for a second round of applications, after supporting eight developments around the country to go ahead.
So far, the Build Ready Development pathway, has allowed projects that otherwise would not have progressed, to get on with plans to build 144 homes in areas where there’s a high need for new housing.
“The housing developments are in South Auckland, Ngārauawahia, Tauranga, Napier, Hastings, Levin, Waikanae and Lower Hutt. Three of the projects now have construction underway,” says Megan Woods.
“The pathway provides support to unlock third party finance and keep the development moving, so we don’t lose the critical supply of new housing to help fix the housing crisis we inherited,” Megan Woods said.
An important criteria for getting this Government support, is that all developments must include affordable housing.
“The supply of new affordable homes fell off a cliff post-GFC, so these counter-cyclical measures help developers with a pipeline of work, to build more homes for New Zealanders,” Megan Woods said.
The second round is aimed at regional areas impacted by recent weather events, so developments in Hawke’s Bay, Tairawhiti and Te Tai Tokerau, will be prioritised.
The pathway provides developers who have eligible, build-ready developments that are yet to start construction, in regional areas of need for new housing, with two routes to Government support. These are either by selling ‘build-ready’ land to a suitable Government land acquisition programme, or by the Government agreeing to prepurchase or underwrite homes.
The second round of funding of $159 million is open from 29 May, with applications open until 16 June.
Minister Woods says the Pathway, under the Affordable Housing Fund, is another initiative that will help deliver more homes for New Zealanders.
“This is an innovative way to help ensure more affordable housing is being built for Kiwis, while encouraging and supporting developers who would otherwise not progress these developments.
Further information about the fund, the application process and a briefing date for potential applicants to find out more can be found at https://www.hud.govt.nz/our-work/build-ready-development-pathway/,” said Megan Woods.
Note for Editors:
Round One projects:
- Initial funding was announced in August year by Minister Woods at the Constructive Conference
- Six projects: Manurewa in South Auckland, Ngāruawāhia, Hastings, Waikanae, Levin and Waiwhetū in Lower Hutt have been contracted for a $59.4 million investment to deliver 107 homes, with expected completion of some of the homes starting from later this year.
- 28 homes have been prepurchased and will be on-sold for public housing;
- 10 will be sold as KiwiBuild homes and offered to eligible KiwiBuild buyers;
- 60 homes are supported with a BRD underwrite and will be sold to the open market
- 9 homes did not need to be underwritten but have been enabled by underwrites on other homes in the development
- Two further projects approved: one in Tauranga (seven homes) and one in Napier (30 homes) taking the number of homes unlocked to 144 under the programme.
