Changes aimed at removing barriers faced by Community Housing Providers.
The Government has agreed to a series of changes to support Community Housing Providers (CHPs) in delivering social housing, with the aim of creating a level playing field between CHPs and state-owned Kāinga Ora – Homes and Communities.
Housing and Associate Finance Minister Chris Bishop says that the government wants CHPs to be treated equally when competing for funding to deliver social housing. Unlike previous policies, the new approach is neutral as to whether the state or community sector delivers social housing. To address a disparity in finance access, officials will advance several short-term changes.
These include amending contracts for new housing supply, increasing leasing options, and capitalising part of the Operating Supplement paid to CHPs. The Reserve Bank is also considering reviewing standardised risk weights to prioritise the treatment of CHPs. Over the next three months, the government will explore a credit enhancement intervention for CHPs to access suitable debt.
Ministers have directed the Treasury and Ministry of Housing and Urban Development (HUD) to investigate options for supporting CHPs' access to finance. These include providing direct lending or guarantees, establishing a Crown intermediary, or providing lending or guarantees to a private lender. The changes aim to create contestability between CHPs and Kāinga Ora for delivering new social housing places and deliver better value for money.
The Treasury and Ministry of Housing and Urban Development will work with the CHP sector to deliver advice on these changes to Ministers in early 2025.