Social Housing Minister Amy Adams has announced the Government's plan to mostly use Housing New Zealand Corp to build a net 25,936 new houses in Auckland over the next decade, including 20,671 affordable homes to be sold on to private buyers. The rest would be retained as social houses owned by Housing New Zealand.
The announcement is effectively the Government's pitch to voters to compare with Labour's Kiwibuild plan to build 50,000 new affordable homes in Auckland to sell to first home buyers.
Adams made the announcement at the Sky City hotel in Auckland ahead of a sod-turning event at a house building project in West Auckland. She announced the Crown Building Project would be mostly delivered by Housing New Zealand through their Auckland Housing Programme, with the rest provided by the Tamaki, Hobsonville, Crown Land Programme and the MSD Social Housing Reform programes.
Housing New Zealand will build a net 17,207 of the 25,936 to be added, including 12,829 new houses to be sold on the market and 11,505 social houses to be built. The social houses will replace 7,127 social houses to be demolished, leaving a net 4,378 extra social houses for Housing New Zealand in Auckland.
Adams said Housing New Zealand's Auckland Housing Programme would cost $2.23 billion over the next four years and would be funded from Housing New Zealand's balance sheet and new borrowing of $1.1 billion through its own domestic wholesale borrowing programme, which would fund the first phase of the project. The second phase would be funded through housing market development and rental returns.
The net 25,936 homes to be built represent 34,211 new homes and the demolition of 8,275 existing Housing New Zealand homes.
"These 34,000 new houses are a substantial redevelopment and construction programme on a scale not seen since the 1950s," Adams said.
She confirmed the Government had agreed Housing New Zealand would retain dividends and proceeds from state house sales to help fund the programme.