Budget provides building blocks for affordable housing

In the Government's package to improve housing affordability Wellington City Council got a nice little boost in the budget to improve its cheap housing stock.

The Government announced $220m in new operating funding over 10-15 years - which works out at $14m a year for 15 years - for Wellington City Council to modernise its cheap housing stock.

It also announced $37.8m in capital funding over three years, and $5.1m in operating funding over four years, to pay for the first stage of the Government's housing development at Hobsonville.

Housing Minister Maryan Street said the Government expected to generate net revenue of $4.7m in 2011/12 from selling houses and land. Crown land would be used to build 500 affordable homes with a matching number of state houses.

The budget also included the previously announced $35m over two years for the shared equity programme to help people into their first home.

The Papakainga programme to help build or buy houses on Maori land got $1.5m.

- NZPA