Source: Radio New Zealand
A Wellington social housing agency has a cap of 380 Income Related Rent Subsidy places. (File photo) RNZ / Samuel Rillstone
More than three-quarters of tenants at Wellington’s biggest social housing agency will not be able to access the cheap rent it was set up to provide.
Te Toi Mahana, a Wellington City Council organisation, took over the council’s housing portfolio in 2023, managing more than 1600 properties.
It was formed so tenants could access the government’s Income Related Rent Subsidy (IRRS) which capped rent at a quarter of their income – because by law, council housing tenants were not eligible.
Over time, as existing council housing tenants leave, new tenants get the subsidy.
However, the government allocated community housing providers a certain number of IRRS “places”.
Te Toi Mahana only had 380, a cap that was agreed between the council and housing ministry in 2022.
It expected those would be filled by June, which means only 23 percent of its households would get the subsidy.
Te Toi Mahana would continue to take on new tenants, but they wouldn’t be eligible for the subsidy, partnerships and community manager Seb Bishop said.
“Once our current IRRS places are filled, there is an open question as to the exact type, tenure and funding for future developments and tenancies.”
Wellington mayor Andrew Little said he intended to advocate for Te Toi Mahana being allocated more IRRS places.
Wellington mayor Andrew Little. (File photo) RNZ / Mark Papalii
“My understanding is MHUD [the Ministry of Housing and Urban Development] sort of wanted Te Toi Mahana to prove itself, to attract new tenants and conduct itself as a CHP [community housing provider].
“We have to stand in the queue, or at least argue for the allocation of new spots, and that’s what Te Toi Mahana is required to do.”
When new places became available in Wellington, Te Toi Mahana would make a case for them, he said.
MHUD said it was in regular contact with Te Toi Mahana about their provision of places.
But since July 2024, the ministry had not been accepting any new social housing tenancies for existing housing stock, unless by exception.
“This is to encourage delivery of newly built social housing places, rather than existing houses, to increase housing supply,” it said.
“Any additional social housing places that are allocated to Wellington will be provided by community housing providers (CHPs) in accordance with the Government’s Housing Investment Plan.”
Under the plan, at the end of February community housing providers across the country will be able to apply for a ‘flexible fund’ which will pay for up to 770 new homes (via funding IRRS places).
Wellington has been allocated 40 to 50 homes, which can be either new builds, or leasing or buying existing stock from the market.
Meanwhile, Te Toi Mahana was planning two new developments in Tawa and Crofton Downs which would deliver 59 affordable homes – a mixture of two bedroom townhouses and one bedroom apartments.
It expected to begin building them in “early 2026”.
Councillor calls for wider access to rent subsidy
Wellington City councillor Diane Calvert, who’s also on Te Toi Mahana board of trustees, urged the government to change the regulation which makes council housing tenants ineligible for the IRRS.
Wellington City councillor Diane Calvert. (File photo) RNZ / Dom Thomas
“If they meet the income criteria, it should be no difference whether you’re in a council social housing or a Kāinga Ora social housing or any other community housing provider,” she said.
“If you meet the income criteria, you should have access. It’s as simple as that.”
Successive governments were at fault, she said.
Housing Minister Chris Bishop would not commit to any changes.
He previously told RNZ social housing funding was limited, and best targeted at adding to the overall stock of subsidised housing.
Previous governments said extending the subsidy to council housing tenants would be too expensive.
It’s effectively created a two-tier rent system for Te Toi Mahana tenants, with tenant A paying significantly more than tenant B in an identical flat next door.
The landlord agreed it was inequitable.
The IRRS was introduced in 2000.
Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand
