Thursday, 11 September 2014
Council to increase social housing under new structure
Christchurch City Council’s decision to lease its social housing to a separate entity will secure the service for
tenants and grow it into the future, says Deputy Mayor Vicki Buck.
The restructure is part of the Christchurch Housing Accord with the Government, which the Council ratified at its
meeting today.
Both the new entity and the Accord are aimed at better addressing the shortage of social housing in Christchurch and
implementing the Government’s Social Housing Reform Programme.
“Housing is one of this Council’s top priorities, and we’re committed to making sure community members have access to
quality, affordable housing now and in the long-term,” Deputy Mayor Buck says.
“Today’s decision addresses the issue that the Council’s social housing portfolio is no longer financially viable — a
problem that’s been significantly compounded by the earthquakes.
“It’s important to highlight that the Council’s social housing has never been subsidised by rates, and there is no
intention to start now.
“The new entity is a way to provide a stable and sustainable future for our tenants, while also acting as a catalyst for
the provision of new housing units in the city.”
Under the Housing Accord, the Government will work with the non-profit entity to attain the status of a registered
community housing provider, to qualify for the Government’s Income-Related Rent Subsidy (IRRS).
The Government has also agreed to invest $75 million through a new Christchurch Housing Accord Fund, and the Council
will contribute up to $50 million worth of land and other assets from its social housing portfolio.
The Government plans to develop two villages totalling 180 homes on Council-owned land in Colombo Street (the former
Sydenham School site) and Welles Street.
Today’s Council decision comes after consideration of significant public feedback on its proposal.
A total of 478 submitters provided comment, with the majority of those supporting the Council holding up to 49 per cent
of the shares in a limited-liability entity that leases the Council’s social housing portfolio.
Council staff will now investigate details and options for the entity’s structure, with a view to providing further
advice to the Council as soon as possible.
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