Housing Minister Chris Bishop announces new lending facilities and loan guarantees.
Housing Minister Chris Bishop has unveiled measures to support the growth of Community Housing Providers (CHPs) in New Zealand. The initiatives, including Crown lending facilities worth up to $150 million, aim to level the playing field between CHPs and Kāinga Ora.
The Government's goal is to achieve "competitive neutrality" in social housing, where the ownership of a house becomes irrelevant in providing warm, dry homes for those in need. The new measures are expected to increase the scale at which CHPs can access lower-cost debt financing, enabling them to deliver more affordable housing portfolios.
To support this effort, the Government is also exploring a loan guarantee scheme, where it would take on some default risk, allowing lenders to pass on reduced interest rates to borrowers. If successful, this initiative could encourage greater participation from banks in the sector.
The Minister of Finance will finalize the design of the loan guarantee scheme later this year, pending bank interest. The initiatives are expected to benefit CHPs and ultimately provide more affordable housing options for New Zealanders in need.