Tauranga chosen as first city for social housing transfer

Tauranga and Invercargill have been selected as the first regions for the proposed transfer of Housing New Zealand Corporation (HNZC) houses to registered Community Housing Providers (CHPs), Ministers Bill English and Paula Bennett say.

As announced by the Prime Minister in January, the Government's Social Housing Reform Programme includes plans to transfer 1000 to 2000 HNZC houses to registered CHPs over the next year.

"We've gone through a robust process to identify the first areas for potential transactions. Tauranga has been chosen because it has stable demand for social housing and a number of community housing providers," Social Housing Minister Paula Bennett said.

"This is a great opportunity for Tauranga to deliver services locally. We know that vulnerable New Zealanders do better when services are delivered by local people for local people. Community ownership for social housing in Tauranga will make a significant difference."

No decisions have been made on the number of houses that may be transferred. The next step is to consult with iwi and hap? in the two regions to identify any particular interests under the Treaty of Waitangi, before deciding whether to proceed to market sounding.

"This is another important step to creating a more effective and efficient social housing sector with more housing providers supporting tenants and their needs," Housing New Zealand Minister Bill English said.

"Existing tenants will continue to be housed for the duration of their need and their rights will not be affected if their landlord changes," Mr English said.

Registered CHPs can partner with other organisations to acquire and develop social housing.

"Housing New Zealand owns around 1,250 houses in Tauranga, so there is potential for more than one organisation to acquire houses for community ownership.

"Houses will not be transferred unless tenants get better services and taxpayers get fair and reasonable value."

Any transfer of houses will not affect the rent tenants pay or their eligibility for subsidised housing, and properties transferred as social houses will also have to stay as social housing unless the Government agrees otherwise.

"With nearly 500 people currently in Housing New Zealand houses in Tauranga with long-term needs and more than 500 with medium-term needs, CHPs are able to integrate housing with other services they may provide, like mental health and disability services, or budgeting support," Mrs Bennett said.

"Tenants will continue to be supported to independence, where appropriate, so that social housing remains available for those most in need."

Since April last year, Government-registered CHPs have been eligible to receive the Income Related Rent Subsidy (IRRS), previously only available for people living in HNZ houses.

Any transfer of social housing to community ownership will include ongoing subsidies to CHPs to continue to provide social housing and obligations for the CHPs to look after the tenants.

Hui with iwi/ hap? will be held later this month and submissions will close on June 12.