NZ Herald
  • Home
  • Latest news
  • Herald NOW
  • Video
  • New Zealand
  • Sport
  • World
  • Business
  • Entertainment
  • Podcasts
  • Quizzes
  • Opinion
  • Lifestyle
  • Travel
  • Viva
  • Weather

Subscriptions

  • Herald Premium
  • Viva Premium
  • The Listener
  • BusinessDesk

Sections

  • Latest news
  • New Zealand
    • All New Zealand
    • Crime
    • Politics
    • Education
    • Open Justice
    • Scam Update
  • Herald NOW
  • On The Up
  • World
    • All World
    • Australia
    • Asia
    • UK
    • United States
    • Middle East
    • Europe
    • Pacific
  • Business
    • All Business
    • MarketsSharesCurrencyCommoditiesStock TakesCrypto
    • Markets with Madison
    • Media Insider
    • Business analysis
    • Personal financeKiwiSaverInterest ratesTaxInvestment
    • EconomyInflationGDPOfficial cash rateEmployment
    • Small business
    • Business reportsMood of the BoardroomProject AucklandSustainable business and financeCapital markets reportAgribusiness reportInfrastructure reportDynamic business
    • Deloitte Top 200 Awards
    • CompaniesAged CareAgribusinessAirlinesBanking and financeConstructionEnergyFreight and logisticsHealthcareManufacturingMedia and MarketingRetailTelecommunicationsTourism
  • Opinion
    • All Opinion
    • Analysis
    • Editorials
    • Business analysis
    • Premium opinion
    • Letters to the editor
  • Politics
  • Sport
    • All Sport
    • OlympicsParalympics
    • RugbySuper RugbyNPCAll BlacksBlack FernsRugby sevensSchool rugby
    • CricketBlack CapsWhite Ferns
    • Racing
    • NetballSilver Ferns
    • LeagueWarriorsNRL
    • FootballWellington PhoenixAuckland FCAll WhitesFootball FernsEnglish Premier League
    • GolfNZ Open
    • MotorsportFormula 1
    • Boxing
    • UFC
    • BasketballNBABreakersTall BlacksTall Ferns
    • Tennis
    • Cycling
    • Athletics
    • SailingAmerica's CupSailGP
    • Rowing
  • Lifestyle
    • All Lifestyle
    • Viva - Food, fashion & beauty
    • Society Insider
    • Royals
    • Sex & relationships
    • Food & drinkRecipesRecipe collectionsRestaurant reviewsRestaurant bookings
    • Health & wellbeing
    • Fashion & beauty
    • Pets & animals
    • The Selection - Shop the trendsShop fashionShop beautyShop entertainmentShop giftsShop home & living
    • Milford's Investing Place
  • Entertainment
    • All Entertainment
    • TV
    • MoviesMovie reviews
    • MusicMusic reviews
    • BooksBook reviews
    • Culture
    • ReviewsBook reviewsMovie reviewsMusic reviewsRestaurant reviews
  • Travel
    • All Travel
    • News
    • New ZealandNorthlandAucklandWellingtonCanterburyOtago / QueenstownNelson-TasmanBest NZ beaches
    • International travelAustraliaPacific IslandsEuropeUKUSAAfricaAsia
    • Rail holidays
    • Cruise holidays
    • Ski holidays
    • Luxury travel
    • Adventure travel
  • Kāhu Māori news
  • Environment
    • All Environment
    • Our Green Future
  • Talanoa Pacific news
  • Property
    • All Property
    • Property Insider
    • Interest rates tracker
    • Residential property listings
    • Commercial property listings
  • Health
  • Technology
    • All Technology
    • AI
    • Social media
  • Rural
    • All Rural
    • Dairy farming
    • Sheep & beef farming
    • Horticulture
    • Animal health
    • Rural business
    • Rural life
    • Rural technology
    • Opinion
    • Audio & podcasts
  • Weather forecasts
    • All Weather forecasts
    • Kaitaia
    • Whangārei
    • Dargaville
    • Auckland
    • Thames
    • Tauranga
    • Hamilton
    • Whakatāne
    • Rotorua
    • Tokoroa
    • Te Kuiti
    • Taumaranui
    • Taupō
    • Gisborne
    • New Plymouth
    • Napier
    • Hastings
    • Dannevirke
    • Whanganui
    • Palmerston North
    • Levin
    • Paraparaumu
    • Masterton
    • Wellington
    • Motueka
    • Nelson
    • Blenheim
    • Westport
    • Reefton
    • Kaikōura
    • Greymouth
    • Hokitika
    • Christchurch
    • Ashburton
    • Timaru
    • Wānaka
    • Oamaru
    • Queenstown
    • Dunedin
    • Gore
    • Invercargill
  • Meet the journalists
  • Promotions & competitions
  • OneRoof property listings
  • Driven car news

Puzzles & Quizzes

  • Puzzles
    • All Puzzles
    • Sudoku
    • Code Cracker
    • Crosswords
    • Cryptic crossword
    • Wordsearch
  • Quizzes
    • All Quizzes
    • Morning quiz
    • Afternoon quiz
    • Sports quiz

Regions

  • Northland
    • All Northland
    • Far North
    • Kaitaia
    • Kerikeri
    • Kaikohe
    • Bay of Islands
    • Whangarei
    • Dargaville
    • Kaipara
    • Mangawhai
  • Auckland
  • Waikato
    • All Waikato
    • Hamilton
    • Coromandel & Hauraki
    • Matamata & Piako
    • Cambridge
    • Te Awamutu
    • Tokoroa & South Waikato
    • Taupō & Tūrangi
  • Bay of Plenty
    • All Bay of Plenty
    • Katikati
    • Tauranga
    • Mount Maunganui
    • Pāpāmoa
    • Te Puke
    • Whakatāne
  • Rotorua
  • Hawke's Bay
    • All Hawke's Bay
    • Napier
    • Hastings
    • Havelock North
    • Central Hawke's Bay
    • Wairoa
  • Taranaki
    • All Taranaki
    • Stratford
    • New Plymouth
    • Hāwera
  • Manawatū - Whanganui
    • All Manawatū - Whanganui
    • Whanganui
    • Palmerston North
    • Manawatū
    • Tararua
    • Horowhenua
  • Wellington
    • All Wellington
    • Kapiti
    • Wairarapa
    • Upper Hutt
    • Lower Hutt
  • Nelson & Tasman
    • All Nelson & Tasman
    • Motueka
    • Nelson
    • Tasman
  • Marlborough
  • West Coast
  • Canterbury
    • All Canterbury
    • Kaikōura
    • Christchurch
    • Ashburton
    • Timaru
  • Otago
    • All Otago
    • Oamaru
    • Dunedin
    • Balclutha
    • Alexandra
    • Queenstown
    • Wanaka
  • Southland
    • All Southland
    • Invercargill
    • Gore
    • Stewart Island
  • Gisborne

Media

  • Video
    • All Video
    • NZ news video
    • Herald NOW
    • Business news video
    • Politics news video
    • Sport video
    • World news video
    • Lifestyle video
    • Entertainment video
    • Travel video
    • Markets with Madison
    • Kea Kids news
  • Podcasts
    • All Podcasts
    • The Front Page
    • On the Tiles
    • Ask me Anything
    • The Little Things
  • Cartoons
  • Photo galleries
  • Today's Paper - E-editions
  • Photo sales
  • Classifieds

NZME Network

  • Advertise with NZME
  • OneRoof
  • Driven Car Guide
  • BusinessDesk
  • Newstalk ZB
  • Sunlive
  • ZM
  • The Hits
  • Coast
  • Radio Hauraki
  • The Alternative Commentary Collective
  • Gold
  • Flava
  • iHeart Radio
  • Hokonui
  • Radio Wanaka
  • iHeartCountry New Zealand
  • Restaurant Hub
  • NZME Events

SubscribeSign In
Advertisement
Advertise with NZME.
Home / New Zealand

Community Housing Providers say more than 500 homes 'gathering dust' during housing crisis

Isaac Davison
By Isaac Davison
Senior Reporter·NZ Herald·
10 Nov, 2019 04:00 PM4 mins to read

Subscribe to listen

Access to Herald Premium articles require a Premium subscription. Subscribe now to listen.
Already a subscriber?  Sign in here

Listening to articles is free for open-access content—explore other articles or learn more about text-to-speech.
‌
Save

    Share this article

    Reminder, this is a Premium article and requires a subscription to read.

Rayray Connor was on a waiting list for a year and a half before getting public housing in Royal Oak. More than 800 people applied for the 52 Salvation Army homes. Photo / Jason Oxenham

Rayray Connor was on a waiting list for a year and a half before getting public housing in Royal Oak. More than 800 people applied for the 52 Salvation Army homes. Photo / Jason Oxenham

Construction of more than 500 houses for New Zealand's most needy families has been put on hold during a housing crisis because of a controversial Government policy change.

Most of the houses were likely to have been completed and tenanted by now if Community Housing Providers (CHPs) did not href="https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12133359" target="_blank">have their funding changed, the organisations say.

In some cases, the land had already been bought or secured but was now sitting bare.

"That means 500 whānau in motels and in transitional housing," said Monte Cecilia Housing Trust chief executive Bernie Smith.

READ MORE:
• Premium - National blames 'state house for life' policy for growing waiting list. Officials say it's not that simple
• 'Lock and leave' apartments blamed for high number of empty homes in Auckland CBD
• Only one in four of Government's new public housing places in Auckland are new builds
• Premium - Auckland landlords charging Government $300 a night to house homeless

Advertisement
Advertise with NZME.

The Government defends the removal of upfront funding, saying it had to make a tradeoff to build as many houses as quickly as possible through Housing New Zealand, now known as Kāinga Ora.

It is exceeding its target of 1600 new public houses a year. But CHPs are responsible for building a third of these houses and some say that without capital funding the rate of new builds is slowing and they have few or no houses in the pipeline.

Meanwhile, the waiting list for public housing is still rising and reached nearly 14,000 households last month.

Advertisement
Advertise with NZME.

And the National Party, which wants non-government providers to play a greater role in public housing, says it will bring back upfront funding if it is re-elected.

The Government replaced capital grants for Community Housing Providers (CHPs) with generous yearly rent subsidies last year. Large organisations like the Salvation Army or Accessible Properties are still able to raise the capital to build houses but many others are not.

Discover more

Investment

Vandal-hit Rotorua landlord decries law change proposal

12 Nov 02:00 AM
Business

Kiwi company says it can build a house in under a week

12 Nov 04:52 AM
New Zealand|politics

Law to make eviction of tenants harder

16 Nov 09:59 PM
New Zealand|politics

Tenants' rights: Landlords fume over new Govt plans

17 Nov 03:15 AM

The Salvation Army opened a new block of 52 units in Royal Oak on Friday. In all, 800 households applied to be placed in the homes.

Rayray Connor, 37, was one of the lucky ones, securing a one-bedroom home in the complex.

"It is a dream come true," she said. "I lost a lot of hope with housing because it's so hard and it's so expensive."

She waited a year and a half to be placed in public housing. Another tenant, from Kaitaia, had waited for five years.

The Salvation Army housing was started with a $4 million capital grant - which was no longer available to providers.

Auckland Community Housing Trust chairman Richard Northey said his organisation built 33 homes for mentally ill tenants in South and West Auckland over two and a half years with the help of an interest-free loan from Government.

Advertisement
Advertise with NZME.

Interest was now being charged on the loan, and with no capital available the trust had been forced to sell seven houses to cover its costs.

"We had been steadily expanding the stock and we just had to stop expanding," he said.

"The need out there is desperate," he added. "And we are ready and able to take it on - provided capital grants are reintroduced."

Smith, from Monte Cecilia Housing Trust, highlighted the scale of the problem at a ribbon-cutting ceremony for 30 new transitional homes in Māngere last month.

"Without Government capital grants over the past two years, Community Housing Providers have over 500 property developments sitting on plans gathering dust," he said.

Monte Cecilia chief executive Bernie Smith has revealed that plans for 500 homes were "gathering dust" because of a Government policy change. Photo / Dean Purcell
Monte Cecilia chief executive Bernie Smith has revealed that plans for 500 homes were "gathering dust" because of a Government policy change. Photo / Dean Purcell

Asked whether capital funding could be reinstated, Prime Minister Jacinda Ardern told the Herald: "We've had to make a judgement over what gets us the most housing as quickly as possible.

"That means partnering with community housing organisations like the Salvation Army who are able to deliver these projects, and also Housing NZ who are able to do the same.

"Our goal is as many houses as quickly as possible - so that's where we're having to make these tradeoffs."

A KPMG study expected to be released soon will show whether CHPs or Housing NZ provide better value for money. The results could influence whether capital funding is restored to non-government providers.

Social Housing Minister Kris Faafoi said the Government would continue to explore options to provide ongoing support to the sector.

After coming into power, the Coalition Government stopped selling off state houses and announced plans to ramp up state house-building to 1600 a year. Under the previous Government, there was a net loss of around 1500 state houses.

However, the Coalition Government's rate of construction still falls short of demand of around 2000 households a year.

Save

    Share this article

    Reminder, this is a Premium article and requires a subscription to read.

Latest from New Zealand

New Zealand

Noel Edmonds to marry again: British TV star proposes in hot tub in NZ

05 Jul 09:00 PM
New Zealand

French fare leaves sour taste after bakers vanish leaving unpaid bills

05 Jul 08:41 PM
Premium
New Zealand

Businessman loses $11.5k in bank transfer error, wages 5yr legal battle to ID recipient

05 Jul 08:00 PM

There’s more to Hawai‘i than beaches and buffets – here’s how to see it differently

sponsored
Advertisement
Advertise with NZME.

Latest from New Zealand

Noel Edmonds to marry again: British TV star proposes in hot tub in NZ

Noel Edmonds to marry again: British TV star proposes in hot tub in NZ

05 Jul 09:00 PM

The Deal or No Deal host has plans to do up a chapel on his Tasman estate.

French fare leaves sour taste after bakers vanish leaving unpaid bills

French fare leaves sour taste after bakers vanish leaving unpaid bills

05 Jul 08:41 PM
Premium
Businessman loses $11.5k in bank transfer error, wages 5yr legal battle to ID recipient

Businessman loses $11.5k in bank transfer error, wages 5yr legal battle to ID recipient

05 Jul 08:00 PM
Bid for inquiry into Ōhinemutu sewage spills fails

Bid for inquiry into Ōhinemutu sewage spills fails

05 Jul 06:00 PM
From early mornings to easy living
sponsored

From early mornings to easy living

NZ Herald
  • About NZ Herald
  • Meet the journalists
  • Newsletters
  • Classifieds
  • Help & support
  • Contact us
  • House rules
  • Privacy Policy
  • Terms of use
  • Competition terms & conditions
  • Our use of AI
Subscriber Services
  • NZ Herald e-editions
  • Daily puzzles & quizzes
  • Manage your digital subscription
  • Manage your print subscription
  • Subscribe to the NZ Herald newspaper
  • Subscribe to Herald Premium
  • Gift a subscription
  • Subscriber FAQs
  • Subscription terms & conditions
  • Promotions and subscriber benefits
NZME Network
  • The New Zealand Herald
  • The Northland Age
  • The Northern Advocate
  • Waikato Herald
  • Bay of Plenty Times
  • Rotorua Daily Post
  • Hawke's Bay Today
  • Whanganui Chronicle
  • Viva
  • NZ Listener
  • Newstalk ZB
  • BusinessDesk
  • OneRoof
  • Driven Car Guide
  • iHeart Radio
  • Restaurant Hub
NZME
  • About NZME
  • NZME careers
  • Advertise with NZME
  • Digital self-service advertising
  • Book your classified ad
  • Photo sales
  • NZME Events
  • © Copyright 2025 NZME Publishing Limited
TOP