CHP-backed initiatives promise transformative housing solutions
Westpac New Zealand has publicly endorsed the New Zealand government’s latest initiatives aimed at supporting community housing providers (CHPs).
The introduction of a new Crown lending facility alongside a loan guarantee scheme is set to invigorate the social housing sector by addressing long-standing financial barriers that have restricted the growth of CHPs.
Westpac’s commitment to housing
Reuben Tucker (pictured left), Westpac NZ’s managing director of institutional and business banking, highlighted the crucial role CHPs play in the housing ecosystem.
He expressed strong support for the government’s strategies, which include a significant $150 million funding injection.
“Based on the successes we’ve seen in Australia, today’s funding injection will certainly help make [the vision of better housing] a reality,” Tucker said.
He also anticipates the proposed loan guarantee scheme to lower CHPs’ borrowing costs significantly, thereby accelerating the development of social housing projects.
Government’s role and expectations
Housing Minister Chris Bishop (pictured right) detailed how the government plans to level the playing field between CHPs and Kāinga Ora through these initiatives.
The government’s efforts are focused on creating competitive neutrality in the social housing sector to ensure efficient delivery of services regardless of the managing body.
Bishop announced the setup of the Community Housing Funding Agency (CHFA), which is set to pool financing for CHPs, allowing them access to lower-cost finance at scale.
Strategic impact and future prospects
These initiatives are expected to empower CHPs considerably by reducing the costs associated with loans and potentially lowering interest rates offered by banks.
“If banks see merit in a CHP loan guarantee scheme, the minister of finance will finalise its design and work towards a go-live date later this year,” Bishop said.
Westpac’s forward-looking approach
Tucker revealed Westpac’s pledge to lend $1 billion to social and affordable housing sectors over the next three years.
He also advocated for expanding ownership options through the community housing sector, which he believes could support many Kiwi families who fall between the cracks of qualifying for social housing and affording private homeownership.
For more information, read the Westpac and government announcements.
