Source: New Zealand Government
174 new affordable rental homes will built across New Zealand with the help of Government grant funding, Housing Minister Megan Woods has announced.
The Affordable Housing Fund was set up to increase the supply of affordable housing with a priority on rentals, in areas with the greatest housing need.
“174 new affordable rental homes will be built across the country because as a result of this second round of the Fund, bringing to 266 the total number approved to date.
“The Affordable Housing Fund is making a real difference in bringing on more affordable homes for New Zealanders, which the National Party says it will cut, if it gets into government.
“This Government has pulled multiple levers to turn around the housing crisis we inherited, and we are starting to see the green shoots of change with record building consents and more affordable housing being built, as a result.
“These partnerships will support and grow the affordable housing sector, who are critical to addressing the needs of New Zealanders who struggle to meet the cost of a market rental, but for various reasons can’t access public housing,” said Megan Woods.
These new affordable rental homes are for low-to-moderate income families and whānau.
The second round of funding will support the building of homes in the following areas of New Zealand:
- 65 homes for Hawke’s Bay
- 64 homes for the Bay of Plenty, including 38 in Rotorua
- 16 homes for Northland
- 24 homes for Christchurch
- Five homes for Blenheim
The Affordable Housing Fund focuses on increasing affordable housing provision (rental and home ownership) on land owned by iwi and Māori groups, Councils and community groups.
Note to Editor:
The National Party’s housing policy says it will get rid of the $235 m Affordable Housing Fund (pge 8).
Affordable Housing Fund
- The $350 million Residential Development Response Fund, originally established to support the construction industry through Covid-19, was repurposed to support the delivery of more affordable housing options for rent and ownership.
- The Affordable Housing Fund focuses on increasing affordable housing provision (rental and home ownership) on land owned by iwi and Māori groups, councils, community groups and private developers, through the Crown sharing some of the cost and risk.
- Rents for the homes are expected to be less than 80% of the median market rent for the type of home.
- Budget 22 converted $200 million of existing funding to be non-recyclable funding and secured a $21 million interest concession for up to $50 million in interest-free loans, to better support housing developments for low to moderate income households.
- Round One of the Affordable Rental Pathway offered $50 million of grant funding in six locations with the greatest need for an increased supply of affordable rentals for those on lower incomes. There were 92 homes funded across the following regions:
- Auckland
- Tauranga-Western Bay
- Rotorua
- Napier-Hastings
- Wellington metro (including Wellington, Porirua, Lower Hutt, Upper Hutt and Kāpiti), and
- Nelson-Tasman.
- Round Two of the Affordable Rental Pathway launched in February 2023 with $100 million available and applications open to not-for-profit entities nationwide.
- These nine projects were selected for early progression as part of the Round Two shortlisting process. The remaining shortlisted projects are in the final stages of assessment.
- $57 million in funding allocated to these nine approved projects will deliver a total of 174 additional affordable rental homes. The balance of the $100 million remaining for Round Two is expected be allocated to other applicants shortly.
