A major investment in affordable homes

Budget 2008 includes significant investment in affordable housing reflecting a wide-ranging plan of action to ensure New Zealanders’ housing needs and expectations can be met in the future, says Housing Minister Maryan Street.

“New capital spending of $37.8 million over three years will be set aside for the first phase of the Hobsonville development We anticipate the development to generate net revenue of $4.7 million in 2011/12 from the sale of houses and land. The development, which will be undertaken in five phases, uses Crown land to create up to 500 affordable homes and up to 500 state houses, as part of a wider project setting a new benchmark for sustainable urban development. The project also gains operating funding of $5.1 million over four years.”

“As announced last week, the government will invest $35 million in capital over the next two years ($9.4 million of which is expected to be repaid between 2010 and 2012) in a shared equity programme over the next two years to help families to buy their first home. Shared equity involves the government taking an equity share in a house, to reduce the size of an aspiring home owner’s mortgage,” Maryan Street said.

“Budget 2008 provides a huge $220 million in new operating funding over the next 10 to 15 years to the Wellington City Council for modernising its affordable rental housing stock.”

In addition, new funding of $1.5 million over the next year through the Papakainga programme will give aspiring home owners access to finance to help buy or build houses on Maori land,” Maryan Street said.

“In February I confirmed the government was investigating a range of additional measures to improve the affordable housing supply and that work is ongoing.

“Building and Construction Minister Shane Jones is focused on increasing flexibility and reducing cost for affordable home builders. He is considering initiatives to reduce compliance costs for simple starter homes, and low-risk areas of building work that could be exempt from requiring a building consent.”