The Government is making it easier for Kāinga Ora tenants to be evicted if they exhibit “persistent antisocial behaviour” and wants to crack down on the level of debt owed by tenants.
The move comes as figures show state house tenants’ debt has increased from $1 million to $21m between 2017 and 2023 and more than 450 Kāinga Ora tenants each owed more than $10,000 in rent at the end of last year.
Housing Minister Chris Bishop is also instructing the housing agency to do more genuine engagement with communities because he was “concerned about the loss of social licence for social housing in communities” that didn’t feel properly consulted with about housing developments.
In a statement, Bishop confirmed he and Finance Minister Nicola Willis had sent an interim letter of expectations to Kāinga Ora’s board to outline what “core functions” the Government expected Kāinga Ora to prioritise.
He had also ordered the board to scrap the Sustaining Tenancies Framework, which aimed to sustain tenancies with a goal to avoid evictions and exits into homelessness while also balancing obligations to neighbours and wider communities.
Bishop claimed the framework had removed incentives for tenants to improve their behaviour. He cited the “most recent stat” that there had been 335 serious complaints per month, which included intimidation, harassment and threatening behaviour. In 2023, three tenancies had been ended due to disruptive behaviour, Bishop claimed.
“At a time when there are over 25,000 people on the social housing waitlist, Kāinga Ora should not be prioritising tenants who abuse their home or their neighbours above families who are anxiously waiting for a home,” he said.
Removing the Sustaining Tenancies Framework and ensuring “appropriate consequences for tenants who engage in repeated antisocial behaviour” was a commitment in the coalition agreement between National and Act.
The core functions Bishop and Willis had outlined to the board were strengthening the management of disruptive tenants, addressing an escalation in rental arrears, tenanting vacant properties as quickly as possible, delivering new social housing places in line with targets and delivering value for money in its spending and delivering savings as required.
On tenant debt, Bishop said it had increased from $1 million to $21m between 2017 and 2023. The number of tenants owing rent had increased from 4248 to 9519 over that time. More than 450 Kāinga Ora tenants each owed more than $10,000 in rent at the end of last year.
“Frankly, this isn’t in anyone’s best interests – not taxpayers, and not the tenants themselves – so Kāinga Ora needs to address the current rental arrears issues and prevent future arrears from escalating,” he said.
Bishop said an updated letter of expectations would be sent to the board later this year in response to the review the Government initiated into Kāinga Ora.
Prime Minister Christopher Luxon said he thought everyone should agree that the Government should provide a safety net for Kiwis. But he said it was a “sad fact” some people abused their right to safe housing.
He talked through examples of violence from Kāinga Ora tenants and situations where anti-social behaviour had impacted surrounding communities.”Today we’re saying enough is enough.”
Luxon said he wanted to be clear that the majority of tenants were upholding their responsibilities.
Housing Minister Chris Bishop said it was “slightly unconventional” to send an interim letter, noting another letter would be sent after the Government’s review, but said it was important to set expectations.
Bishop said terminating tenancies would be on the table if tenants showed persistent anti-social behaviour.
Bishop said he expected a report back from the review of Kāinga Ora by the end of the month.
Luxon this week would be in Wellington for the next three days and would attend Grant Robertson’s valedictory. He would be in Auckland for the rest of the week.
Asked how many people would be homeless as a result of ditching the framework, Luxon said the move was about “fairness”. Pressed for an answer, Bishop responded by saying every tenant was subject to the framework and he had directed Kāinga Ora to take a stronger approach to anti-social behaviour.
Luxon said there would still be “lots of advance warning” before tenancies were terminated.
Bishop said the nature of complaints registered about Kāinga Ora tenants, which included abuse and intimidation, was “unacceptable”. He said in the first instance, tenants would be given an opportunity to change their behaviour.
Bishop said the Government had to have a “backstop” to say “enough is enough” regarding anti-social behaviour. However, he clarified, “We don’t want to evict people”.
Luxon couldn’t guarantee no more children would be made homeless under this change.
Bishop said the implementation of the policy would be determined by Kāinga Ora.
Luxon, asked if he had considered the impact of this change on children, said he was thinking about the children in families still on the state house waitlist.
Bishop said 335 serious incidents per month was unacceptable and only evicting three tenants was unacceptable as well.
He didn’t necessarily want to see more tenants evicted but he wanted to address the “mayhem in communities” being caused by a minority of Kāinga Ora tenants. Eighty-five per cent of tenants paid their rent on time.
Bishop said he had been “frank” about the Government’s dim view of how Kāinga Ora had been operating.
Bishop wanted people to “be OK” with Kāinga Ora developments being built in their communities.
The framework, started under the last National Government, began with the “best will in the world” Bishop said, but he conceded it hadn’t worked.
On the police pay offer, Luxon admitted he had mixed up the pay for police in a recent interview, saying he had received a briefing with various numbers which he had mixed up.
He confirmed there had been an update provided during Cabinet about the police pay offer but wouldn’t go into any further detail.
On Deputy Prime Minister Winston Peters’ recent comments comparing Te Pāti Māori comments with the actions of Nazi Germany, Luxon said it was “not what I would say” and encouraged all in New Zealand politics to avoid using such divisive language.
”I don’t agree with those comments,” Luxon said of Peters’ remarks yesterday during his State of the Nation address.
“We will at some point talk about it.”
He cited Labour leader Chris Hipkins calling the Government a “dictatorship” and Te Pāti Māori claiming the Government was run by white supremacists, saying “extreme language” from any party was not helpful.
Asked whether the Government was looking at further revenue-raising measures to fill any deficits, Luxon replied; “You’ll see it all revealed in the Budget.” He said it was not the intention of the Government to introduce a new tax in the Budget in May.
Luxon’s comments came as both he and Peters, as Foreign Affairs Minister, are today meeting with Chinese Foreign Minister Wang Yi, who is the highest-ranking Chinese politician to have travelled to New Zealand since Wang Yi last visited in 2017.
Peters, speaking as New Zealand First leader, yesterday gave his State of the Nation address in Palmerston North, which included comparing “race-based theory” from the Opposition with actions seen in Nazi Germany.
Holocaust Centre of New Zealand spokesman Ben Kepes told NZME yesterday comments like those were “offensive to the memory of those who died and to those who survived in the Holocaust to start throwing around terms like ‘Holocaust’ or ‘Nazi’ willy-nilly”.
Yesterday, Peters said he was confident New Zealand’s Jewish community would understand what he was trying to say.
Today, Peters told Three’s AM that his “Nazi Germany” comments were referring specifically to comments made by Te Pāti Māori regarding Māori genes being superior.
Labour leader Chris Hipkins today condemned Peters’ comments and said he should start behaving like a Deputy Prime Minister.
“I think New Zealanders should expect some greater leadership from both the Prime Minister and the Deputy Prime Minister.
“I think the sorts of comments that he is making are unnecessarily inflammatory and I don’t think that he’s living up to the standards of behaviour that we would expect from someone in that role.”
Hipkins accepted politicians should be able to switch between their ministerial roles and their party leader roles, but he argued Peters’ comments reflected poorly on both the Government and the country.
It’s the latest in the war of words Peters and Hipkins have engaged in since yesterday’s speech.
Afterwards, Hipkins described Peters’ behaviour as similar to a “drunk uncle at a wedding”.
Peters shot back on social media today, saying Hipkins’ comment was laughable “coming from someone who would get drunk on a wine biscuit”.
Adam Pearse is a political reporter in the NZ Herald Press Gallery team, based at Parliament. He has worked for NZME since 2018, covering sport and health for the Northern Advocate in Whangārei before moving to the Herald in Auckland, covering Covid-19 and crime.
The Resources Minister came to the select committee sporting a Make NZ Great Again hat.