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Overview of the Social Housing Reform Programme People who need housing support can access it and receive social • services that meet their needs Social housing is of the right size and configuration, and in the right • areas, for households that need it Social housing tenants are helped to independence, as appropriate • There is more diverse ownership or provision of social housing • There is more innovation and more responsiveness to social housing • tenants and communities The supply of affordable housing is increased, especially in Auckland. • 2
Better tenant outcomes: An integrated support system Support Services Housing Housing Support Products Rent or accommodation subsidies 3
The Housing Continuum Demand touch-points KiwiSaver HomeStart Grant Housing First Supply touch-points 4
The 2016 Purchasing Strategy • Released in December 2016, MSD’s Purchasing Strategy guides what social housing is funded and where. • The release provides information about the demand and supply of social housing and how MSD works with CHPs, including how it agrees market rents, contracts and funds social housing, and the products and services in place to support tenants. • Information in this release supports providers to make investment decisions. • The Purchasing Strategy will evolve as more information becomes available and MSD trials different ways of working with providers and tenants. 5
What was different? • 2016 shows a increase in the number of community housing provider owned properties. In 2015 we had 26 registered providers and at the end of last year we have 41. As at 30 September 2016 they were supporting over 3,100 kiwi households. • Includes information about the ‘pipeline’. That is new places has been contracted or close to it. This is in addition the new places signalled in the purchasing intentions. • Includes information about new funding and contracting parameters. 6
Purchasing Strategy 2016 PART ONE- PART THREE- the sets the scene. actual numbers. The future How many places direction of social we intend to housing and what subsidise over the we’re hoping to next few years and achieve where PART TWO- explains the operational support we can provide including contracting arrangements 7
Part One: Where we’re heading • Part one covers the future direction of social housing market and the Government’s objectives A key objective of the Social Housing Reform • Programme is to; ‘Encourage and develop a more diverse ownership of social housing, with more innovation and responsiveness to tenants and communities.’ • We want to make sure that those who need help with housing get the support they need • We’re moving away from a one-size fits all approach to housing support • We’re looking to apply a social investment approach to social housing 8
Our objectives $ The right person, in the right place, for the right time and at the right price 9
Part Two: Information about the market and contracts • Demographics of people on the register. For example; almost half of the households on the register have one or more child. • The number of additional IRRS places that MSD already has contracts for or that we’re likely to have. These are in addition to the purchasing intentions. • Information on the maximum rent that MSD will pay for properties depending on size and location. For example; in Christchurch the maximum rent for a one-bedroom social housing property we’d pay a subsidy for would be $350 . 10
Information about the market and contracts • Information on MSD’s contracting arrangements. For example; • Short-term spot contracts cover the duration of a specific tenancy • Long-term capacity contracts which cover a particular property for a set period of time. • Information on how providers can get involved including advice on how to become a registered CHP. 11
Part Three: MSD’s 2016 Purchasing Intentions • There’s a mismatch between current social housing and the needs of many tenants. If we can address this mismatch we could free up funding for others in need. • We’re looking to change the types of properties we currently subsidise. In particular we know that we need fewer three-bedroom places and more one-bedrooms properties to meet demand. • Over the next four years we’ll be looking to subsidise another 3,800 properties . 1,900 will be in Auckland and the other 1,900 in the rest of NZ. • Demand is greatest for one and two-bedroom places. 12
How we worked out the intentions • The intentions were developed using a wide variety of information including data from MSD, StatsNZ, HNZ, MBIE and feedback from the sector The number of existing places and future places signalled by • providers (which are very likely to happen the “pipeline”) have been considered. BASE 2016 Purchasing Pipeline Current IRRS places Intentions 13
MSD’s 2016 Purchasing Intentions These are in addition to existing places (the base) and those that are contracted to come on board or are close to it (the pipeline) New IRRS subsidised places required over next 4 years (2016 Purchasing Intentions) Regions Current places 1 bed 2 bed 3 bed 4 + bed TOTAL 28,591 690 705 305 200 1900 Auckland 1,933 60 50 15 5 130 Northland 4,004 115 40 30 20 205 Waikato 2,530 155 85 45 5 290 Bay of Plenty 1,121 30 35 5 0 70 Gisborne 2,544 80 80 35 0 195 Hawkes Bay 1,024 10 0 0 0 10 Taranaki 2,225 65 25 15 0 105 Manawatu-Wanganui 7,749 325 60 65 5 455 Wellington 146 5 5 5 0 15 Tasman 547 10 5 0 0 15 Nelson 374 30 20 0 0 50 Marlborough region 268 5 0 0 0 5 West Coast 6,219 245 40 20 0 305 Canterbury 1,465 30 10 0 0 40 Otago 367 10 0 0 0 10 Southland Other 297 TOTAL 61,404 1,865 1,160 540 235 3,800 14
Regional Overview: Canterbury Existing One Two Three IRRS Four+ Bedroom Bedrooms Total Bedrooms places Bedrooms Canterbury Region Christchurch City 5,442 220 30 20 0 270 Waimakariri District 137 10 5 0 0 15 Selwyn District 8 0 0 0 0 0 Ashburton District 170 5 0 0 0 5 Timaru District 139 5 0 0 0 5 Waimate District 21 5 5 0 0 10 Mackenzie District 0 0 0 0 0 0 Hurunui District 22 0 0 0 0 0 Kaikoura District 20 0 0 0 0 0 Canterbury Total 6,219 245 40 20 0 305 MSD weekly maximum market rents for ChristchurchCity $350 $450 $550 $650 $750 +5 Bdrm 305 465 500 of 6,110 people on the social housing Places in the pipeline More places to be provided by CHPs register are in Christchurch City for Canterbury Region and HNZ in Canterbury Region
Questions and Answers 16
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