Flexible Fund Opens to Deliver 770 New Social, Affordable Homes

Mr Potaka says iwi providers in particular are often well placed to respond to housing demand within their communities.

Applications have officially opened for the first round of the Government’s new Flexible Fund, unlocking capacity for up to 770 additional social homes and affordable rentals in areas facing the most acute housing pressure.

Housing Minister Chris Bishop and Associate Housing Minister Tama Potaka say the fund marks a structural reset in how the Government commissions and invests in social housing.

“Our Government believes in social housing,” Mr Bishop says. “For families and individuals struggling to find a stable, secure place to live, we’re focused on turning housing need into real homes.”

Replacing a Fragmented System

The Flexible Fund was established last year to replace what ministers describe as a “confusing patchwork” of separate social and affordable housing programmes with a single, contestable funding pathway.

Under the new model:

• Funding decisions are driven by detailed national and regional housing-need data

• Local insights shape the types of homes commissioned

• Providers compete on delivery capability, financial strength and value for money

• Proposals are assessed on alignment with identified demand

Rather than fitting projects into rigid programme categories, the fund allows tailored responses based on local conditions.

“The new system uses detailed data and local insights to identify where housing need is highest and which types of homes are required,” Mr Bishop says. “Instead of forcing good ideas into rigid categories, we can support interventions that directly target need.”

Filling the Affordable Rental Gap

A central innovation of the Flexible Fund is the inclusion of affordable rentals alongside traditional income-related social housing.

Affordable rentals are priced below prevailing market rent in a region, providing an intermediate option between:

• Social housing, where tenants typically pay 25 percent of their income

• Full market rentals

Ministers say this “missing middle” option is critical for working households who earn too much to qualify for income-related rent but remain priced out of private market housing.

“There should be an intermediate option between traditional social housing and market rentals,” Mr Bishop says.

Priority Regions Identified

The first funding round will prioritise high-need regions identified through national data analysis and local demand modelling, including:

• Far North

• South Auckland

• Eastern Bay of Plenty

• Gisborne–Tairāwhiti

• Hastings

• Hamilton

• Tauranga

• Wellington

• Christchurch

By targeting specific regions, the Government aims to ensure new builds match demographic trends, overcrowding pressures, and waiting list concentrations.

Backed by a Long-Term Housing Investment Plan

The Flexible Fund sits within the broader Housing Investment Plan released last year, which outlines where public housing funding will be directed and how impact will be measured.

The Government says Budgets 2024 and 2025 are already supporting delivery of more than 2,000 additional homes nationwide, including:

• Increased one-bedroom homes for singles and older tenants

• More accessible homes for people with disabilities

• Renewed and upgraded Kāinga Ora stock

Ministers also point to a significant reduction in the number of families placed in emergency housing motels, alongside Kāinga Ora’s internal turnaround plan to improve maintenance and asset management.

Delivery Through Community and Iwi Providers

The Flexible Fund will support projects delivered by:

• Community housing providers

• Iwi Māori housing providers

• Other capable not-for-profit or development organisations

Applicants must demonstrate:

• Proven delivery capability

• Financial sustainability

• Alignment with identified housing need

• Strong value for money

“This is about disciplined investment,” Mr Potaka says. “We want warm, dry, safe homes that meet local need and can be delivered on time and within budget.”

Mr Potaka says iwi providers in particular are often well placed to respond to housing demand within their communities.

“For many whānau, housing security is the foundation for better health, education and employment outcomes. Iwi providers understand their communities and the pressures they face.”

Applications Now Open

Stage one applications open today and close on 24 April 2026.

The Government says the Flexible Fund complements its wider “Going for Housing Growth” reforms aimed at increasing overall housing supply, while ensuring targeted support continues for households in highest need.

“With the Flexible Fund, we are aligning disciplined public investment with real housing demand,” Mr Bishop says. “This is about making sure every dollar delivers more homes for the people who need them most.”