Move is expected to allow providers to deliver new builds faster
The New Zealand government has announced that community housing providers (CHPs) will now be able to access upfront funding in the early stages of new build developments to hasten the pace of delivery.
“Early-stage funding brings forward some of the money government already provides to CHPs over the course of a 25-year contract,” said housing minister Megan Woods.
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Woods added that this “progressive partnership” will benefit smaller CHPs who initially lack the asset base to secure new build projects.
“I want to make sure the timing of government payment best matches the requirements of each project on a case-by-case basis. This ensures access to funding doesn’t delay the development of new housing,” said Woods.
Since November 2017, the total public and transitional housing funding given to CHP has more than tripled to $1.05 billion.
According to Woods, front loading payments “can help more new builds get underway while still providing the same level of support to the CHP that we would over the lifetime of the project.”
“We’re committed to using all the available levers we can to get more housing built,” said Woods. “That’s why we’re taking a refreshed ‘progressive partnership’ approach with Community Housing Providers with a key focus on ‘building rather than buying’ - and by providing greater funding flexibility we’re helping maintain a strong pipeline of new homes, now and into the future.”
