The Government has announced a package to build 6,400 more public houses over the next four years and support more people in urgent need of housing.
The new public housing* will be built through a combination of:
- $234.4 million in operating funding from Budget 2018
- Housing New Zealand borrowing up to $2.9 billion from third parties and investing a further $900 million from its operations.
Housing New Zealand and Community Housing Providers will deliver this four year goal. Transitional housing and a range of other housing measures will support people who urgently and immediately need housing in the meantime.
Housing New Zealand - investing more in state housing
In addition to the funding for the extra public houses, over the next four years Housing New Zealand is investing a further $1.8 billion purchasing more homes and upgrading and improving our existing stock.
This will see up to $5.6 billion invested over four years in new state homes and the upgrading and modernising of existing ones – the largest investment HNZ has made in its housing stock for decades.
This is a significant investment which will provide more modern, warm and dry homes for more New Zealanders in need.
Public housing is targeted at households who cannot access or sustain a tenancy in the private rental market for a range of reasons. Public houses are owned or leased by Housing New Zealand (HNZ) or by registered Community Housing Providers (CHPs), and can be tenanted by people who are eligible for public housing.
Most tenants in public housing pay income-related rent which limits the amount of rent low-income tenants pay to no more than 25 per cent of their net income. This rental payment is then topped up to a market rent by the Ministry of Social Development’s Income Related Rent Subsidy (IRRS).