More than 500 places for social housing in Auckland will be made available through a government partnership with community housing providers.
Five registered providers – The Salvation Army, Accessible Properties, the Chines New Settler Trust and two others yet to formally sign contracts – will see 508 places available over the next three years.
The figure exceeds the Government's initial target for the untested model of 300 homes and Social Housing Minister Paula Bennett says she's pleased with the response, calling it "real progress".
"We have been working closely with the community housing sector to find sustainable ways to grow the supply of social housing in Auckland and house more vulnerable New Zealanders," she says.
"The response is beyond our expectations and signals an innovative sector that is ready to work with the Government to play a bigger role in social housing."
Salvation Army Territorial Commander Commissioner Robert Donaldson says the charity, which has 87 places, will begin building 50 affordable new houses in Royal Oak intended for over-55s on low incomes.
Through the Income-Related Rent Subsidy, the Government will guarantee 100 percent of market rent on the properties, but tenants' rent will be capped at 25 percent of their income.
"This delivers a better deal for our tenants and also makes this a financially viable project for The Salvation Army," Cmmr Donaldson says.
Meanwhile, Accessible Properties will provide 358 places, the Chinese New Settler Trust will provide 36.
The Salvation Army is still to confirm architectural plans and appoint a project development team and new tenants are expected to move in by 2018.
Accessible Properties will focus on south and west Auckland and their contribution will make up to 58 new homes and up to 300 lease and sub-lease homes.
The organisation has completed 157 new housing units in the past two years, and 34 will be completed early next year. Forty-one of those are in Auckland with 16 more underway.
Changes introduced in May this year meant the Ministry of Social Development can negotiate contracts for the Income-Related Rent Subsidy for up to 25 years.
The Government has opened pup another 1000 places for more community housing providers to apply for, with the deadline for expressions of interest on November 25 next year.
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