Policy Area: Housing

Statement of General Direction:

To ensure all New Zealanders have access to good quality, affordable housing.

To improve access to affordable accommodation through increased Income Support payments and improved participation in housing provision.

To especially assist those with disabilities into suitable accommodation.

Key Initiatives of Policy:

Institute an interim freeze on Housing New Zealand rents pending a review of affordability issues, including a review of the Accommodation Supplement and the Special Benefit.

Accept in principle the merger of Housing Corporation, Community Housing Ltd and Housing New Zealand under a single structure. Replace the profit focus of Housing New Zealand with a new brief to meet the Crown's social objectives in a businesslike manner.

Increase numbers of community houses and ensure that there are sufficient community houses available.

Provide for a single lead agency to deliver Community Housing to improve coordination and delivery.

The Government will provide encouragement and practical assistance to allow State house tenants to purchase their own homes through a Right-to-Buy scheme and fur ther review this policy to ensure it has practical effect.

Recognise the special pressure in the Auckland region by significantly increasing Housing New Zealand stock in that region and initiating special arrangements to manage hardship cases.

Fiscal Implications of this Policy Agreement:

Up to $110 million in Accommodation Supplement and Special Benefits (see Social Welfare) review and possibly more depending on balance between rent freeze and Accomodation Supplement increases.

Possible cost of up to $1 billion to repay Housing New Zealand (HNZ) debt bonds if structural changes to HNZ are not managed in accordance with contractual arrangements.

(All funding proposals subject to being considered within the agreed spending policy parameters.)

Legislative Implications of this Policy Agreement:

Possible need to legislate Housing New Zealand and Accommodation Supplement changes, dependent upon advice.

Right-to-Buy scheme may require legislation.

Merging of Housing New Zealand, Housing Corporation and Community Housing may require legislation.