Phil Twyford on the absence from work of KiwiBuild chief executive Stephen Barclay.
Only half of KiwiBuild homes offered by ballot were sold last year, leading the Opposition to claim the housing minister has "given up" on the selling method.
By the end of 2018, KiwiBuild had offered 96 homes by ballot, but only 48 were sold - 20 completed homes and 28homes sold off the plans.
A KiwiBuild spokesperson confirmed they are now offering some of the remaining 48 properties for direct sale, which they say real estate agents have reported "good interest" in.
Auckland resident Tim McSweeny told the Herald on Sunday he entered the ballot for about 40 KiwiBuild homes. He was offered two via separate KiwiBuild ballots - firstly a one-bedroom apartment in Ōtāhuhu, and then a two-bedroom apartment in Mt Albert.
But he decided not to go ahead with either of the offers because he didn't feel he had enough time to "diligently review" the properties. After rejecting them, he said he was approached by real estate agents a few weeks later with an offer to buy apartments in the same Ōtāhuhu and Mt Albert developments directly.
"We were informed there are a number of apartments that had previously been in the ballot, and obviously I assume hadn't been chosen, and we were offered to buy those outright," McSweeny said.
Housing Minister Phil Twyford said "direct sales have always been an option" for KiwiBuild.
"We have always said the ballot would be a temporary measure for areas where there was high demand for KiwiBuild homes," Twyford said.
"For developments such as McLennan in Papakura, where there were about 20 families wanting to buy each home, the ballot was the fairest way to sell them."
A KiwiBuild spokesman added it would be "incorrect" to say none of the 48 remaining KiwiBuild homes would be sold through the ballot.
He noted the latest ballots in the closing weeks of 2018, for 15 built homes, could still end up as completed ballot sales.
National Party spokeswoman for housing, Judith Collins, says Housing Minister Phil Twyford is giving up on the KiwiBuild ballot system. Photo / NZME
National spokeswoman for housing Judith Collins said Twyford had changed his tune on the integral role the ballot system would play when KiwiBuild was launched in the middle of last year.
"Labour campaigned on KiwiBuild running a ballot system to 'ensure everyone is treated fairly' as there would be 'significant demand for KiwiBuild homes, particularly in the first few years of the programme'. How wrong they were.
"Mr Twyford has given up on his KiwiBuild ballot and is instead letting the private sector sell his houses, who are much better placed to as well."
The first KiwiBuild ballot of this year will be opening soon with an announcement on more homes offered for direct sale.
Prime Minister Jacinda Ardern this week too downplayed the news the 1000-home target would not be met.
Prime Minister Jacinda Ardern conceded "we're falling shy" of KiwiBuild home targets this week. Photo / AP
Earlier this week, a report from think tank the New Zealand Initiative slammed the KiwiBuild programme as a "bewildered beast", with little hope of delivering its goals, and serving as a "massive political and bureaucratic distraction".
"KiwiBuild cannot hope to materially increase home ownership proportions - the original 2012 objective," the NZ Initiative report says.
"Additional housing, if achieved, will likely lift renting and ownership more or less in tandem."
The report also concluded KiwiBuild was now "for the relatively well-off", now that the price of its homes were around twice the $300,000 target set in the original policy.
KiwiBuild is one of the cornerstone policies of the Government with Twyford explaining in October 2017 that the $2 billion scheme would lead to 100,000 new homes being built in the next decade.
But it has been beset with issues, including the resignation of KiwiBuild boss Stephen Barclay. Twyford will not talk about the departure saying it was an employment issue.
