Budget 2024 Allocates $140 Million for 1,500 New Social Housing Units

“The social housing waitlist exceeds 25,000 applicants, with many Kiwi families living in emergency housing motels or on relatives’ couches while awaiting stable housing,” added Mr. Potaka.

New funding for social housing in Budget 2024 will enable the Government to support more families with warm, dry homes starting from July 2025, according to Housing Ministers Chris Bishop and Tama Potaka.

“Earlier this week, I was proud to announce that Budget 2024 allocates $140 million to fund 1,500 new social housing units provided by Community Housing Providers (CHPs),” stated Mr. Bishop.

“This investment underscores the Government’s commitment to housing New Zealanders in need in a fiscally sustainable manner.”

“The social housing waitlist exceeds 25,000 applicants, with many Kiwi families living in emergency housing motels or on relatives’ couches while awaiting stable housing,” added Mr. Potaka.

The Government has decided to reallocate funds from first home grants to community housing providers to address the social housing shortage.

Mr. Bishop and Mr. Potaka announced this initiative at Dwell Housing Trust’s social housing development in Kilbirnie, a model project eligible for the new funding.

Mr. Bishop outlined the allocation plan for the 1,500 new homes by the Ministry of Housing and Urban Development, set to begin from 1 July 2025. Given the construction timeframes, these homes will be contracted over the next 12-18 months.

“Currently, social housing is procured from CHPs on a project-by-project basis. Approximately 500 of the new homes will be allocated quickly, focusing on value for money, reducing reliance on emergency housing motels, and building capability in underserved regions,” Mr. Bishop explained.

“This prioritization aims to make the most significant impact by moving families out of motels,” Mr. Potaka emphasized.

The Ministry of Housing and Urban Development will communicate the revised criteria for these 500 homes to Community Housing Providers by 30 June 2024.

The remaining 1,000 homes will be allocated using an “active purchaser” approach, which officials will develop for Ministerial approval throughout 2024. This approach, informed by the Independent Review of Kainga Ora, involves a sophisticated understanding of housing needs and outcome-based contracts.

“Subject to Ministerial approval, HUD will develop longer-term strategic partnerships with some CHPs to achieve specific social and housing outcomes, rather than evaluating single proposals individually,” Mr. Bishop said.

This active purchasing strategy will be part of the broader response to the Kainga Ora review and the Government’s overall housing funding program review.