Kāinga Ora has announced its withdrawal from the Teitei Drive housing project in Ohakune. Photo / Bevan Conley
Kāinga Ora - Homes and Communities has withdrawn as the developer of a proposed mixed housing development in Ohakune.
The government housing agency partnered with Ruapehu District Council and Ngāti Rangi with plans to build 44 homes on residentially zoned vacant land at Teitei Drive.
The development was intended to help address the shortage of suitable and affordable houses to rent or buy in the area.
Graeme Broderick, Kāinga Ora’s regional director for Taranaki, Whanganui and Manawatū, said as the development had progressed through the detailed design and planning phases, it had become clear that the Crown Infrastructure Partner (CIP) funding would not be sufficient to complete the project as it was originally scoped back in 2021.
”The Teitei Drive development was originally scoped three years ago and over that time, housing construction and infrastructure costs have risen significantly,” Broderick said.
”As we’ve progressed through the design and planning stages, it has become clear that the allocated CIP funding will no longer be sufficient to complete the project. This, combined with current market pressures, has meant that the project is no longer financially viable for Kāinga Ora and we cannot deliver the intended affordable housing outcomes.
”With this in mind and after considering multiple options, we have made the difficult decision that it is not feasible for us to proceed with this development.”
Broderick said the decision meant Kāinga Ora would no longer submit a resource consent application for enabling the works.
”We understand that our decision will be disappointing for the individuals and families who are currently in need of housing.
“We remain committed to working closely with Ruapehu District Council and Ngāti Rangi to explore opportunities to deliver public and affordable housing, as together we recognise the need for more housing across the Ruapehu District.”
Ngāti Rangi Pou Ārahi Helen Leahy said the decision was a major setback for the community.
“It is a basic human right to live in adequate housing,” she said.
“We have too many families across our region in dire housing need; in emergency housing; couch-surfing, living in sheds; families forced to live together in over-crowded conditions.
“Ngāti Rangi has set a vision for its people to vibrantly exist in 1000 years. The concept of a 100-day plan to address decades of state neglect is shortsighted in comparison. We know that housing directly relates to all aspects of wellbeing for a whānau.”
Leahy said Ruapehu District Council’s investigations, along with those of Nga Waihua o Paerangi (the trust established in 2018 to receive and manage Treaty of Waitangi settlement redress on behalf of Ngāti Rangi), had established an urgent need for improved quality and supply of housing.
“Ngā Waihua o Paerangi Trust is aware of over 30 local whānau that are in dire need of safe, warm, and healthy homes. The announcement today, axing the project to build 44 new houses in our region, is a major setback for Ngāti Rangi and the wider community.
“This decision, along with the rushed legislative passage to quash Te Aka Whai Ora [Māori Health Authority] – an agency that has supported Ngāti Rangi with opportunities to directly support our community - is devastating.”
Leahy said Ngāti Rangi was reflecting on the hundreds of hours spent in community engagement, design and development meetings, cultural and environmental planning, and working with whānau to respond to their aspirations.
“We will be writing to respective Ministers to let them know of the adverse impacts that their 100-Day Plan is already having within our community”.
Ruapehu Mayor Weston Kirton said he was “pretty gutted” that Kāinga Ora had pulled out of the development.
“They haven’t ruled out the possibility of buying existing houses or building elsewhere in the district to address social housing needs but the council won’t be involved,” he said.
“We had a unique situation where we were able to provide the land and help increase good housing stock without any cost to ratepayers.”
Kirton said constituents had identified an increased supply of safe, affordable housing as a priority when he stood for the mayoralty in 2022.
“I am deeply disappointed that this chance to help address those needs is now off the table.”
Liz Wylie is a multimedia journalist for the Whanganui Chronicle. She joined the editorial team in 2014 and regularly covers stories from Whanganui and the wider region. She also writes features and profile stories.