Palmerston North City Council is teaming up with community housing provider Homes for People to make it easier for residents, including first-home buyers, to secure a property in the city's newest subdivision.
The council has agreed to sell 20 of the 114 sections at Tamakuku Terrace in James Line to Palmerston North-based Homes for People, which will build new homes for those eager to enter the property market.
The other sections available to the general market will also be a range of sizes and differing indicative values to address affordability and accommodate buyers at different stages of life.
Mayor Grant Smith says it's a great outcome and start in a challenging sector.
"We want to see more Palmerston North residents be able to own their own home, and this partnership will help start bringing that vision to life.
"It strikes a great balance for us to partner with Homes for People, a local group with a proven track record in the affordable housing space, while also delivering much needed sections to the wider property market."
The two organisations are working through the contract, which is expected to be signed in the coming weeks.
Council chief executive Heather Shotter says house prices have skyrocketed in the city over recent years, partly due to the shortage of new housing.
"We are delighted to be releasing sections for sale, to assist with housing development in Palmy.
"As well as this development, over the coming months we will be consulting on District Plan changes to rezone significant new areas for housing at Aokautere, Ashhurst and Kakatangiata. This should unlock more than 20 years of development capacity by the end of next year."
Homes for People is looking at building medium-density housing on the sections it will purchase. The detail of this will be worked through during the consenting process, however initial urban design work anticipates it could build upwards of 50 dwellings across the development.
The homes will be spread across the two stages of the subdivision, and at different locations across the site.
Homes for People co-founder Darren Birch says it is great to get this partnership across the line.
"It's wonderful that Palmerston North City Council has responded to the lack of affordable housing supply and taken proactive steps to help find solutions. We're excited to work alongside council in creating homes for lower-income households who are otherwise struggling to purchase their own home."
Homes for People is a social enterprise with charitable status, so all surpluses are reinvested into the community.
Over the past five years, Homes for People, with the support of individuals, has been able to deliver quality homes to first homeowners and people ready to downsize. It has built in Terrace End, Takaro, Roslyn, Highbury, Awapuni, Ashhurst and Levin.
Birch says Homes for People exists to relieve poverty by developing affordable housing to help low-income people and households by matching social impact investors with commercial and community partners to deliver new homes to qualifying homeowners.
A selection of homes, including those at Tamakuku Terrace, are made available through its HomeSaver (rent then buy) and Home for Life (shared equity) assisted homeowner programmes.
To register your expression of interest in these homes, visit homesforpeople.co.nz.