Housing Trust awaits key decision

August could be a landmark month in the future of affordable housing in Queenstown Lakes.

Contentious council plans to make property developers pay a contribution (either land or cash) to the Queenstown Lakes Community Housing Trust (QLCHT) went to a two-week hearing in late February.

"We're waiting on the commissioner's recommendation, and it's imminent, potentially as early as next week," Trust chief executive Julie Scott says, on Friday.

"Obviously we have our fingers crossed that it will be a positive recommendation that council proceeds ... and then council adopts the recommendation to move forward."

The proposal, dubbed 'inclusionary zoning', would provide the QLCHT ongoing funding to continue to tackle Queenstown's affordable housing crisis.

It formalises a relationship between council, developers and the trust going back two decades, where subdivision developers have made a voluntary contribution as part of their resource consent.

Some 181 submissions were made during the public consultation phase, from housing trusts, land developers, local businesses, property owners, Age Concern, iwi and others.

Many supported the council's direction but questioned the scope of the plan change. Even QLCHT called for the contributions to only be mandatory when the development would increase the value of the land, such as where it was rezoned rural to residential. The Trust wanted exemptions for smaller developers on existing services lots and other adjustments to the policy.

Others were in complete opposition, saying the change would discourage development, increase the price of housing, and was an unlawful stealth tax on property developers.

The Trust has completed eight housing developments over the years (119 homes) using land and contribution from developers, backed by Progressive Home Ownership government funding and interest free loans.

It has helped more than 244 local households into homes through various ownership financial models, in one of the most expensive places to live in New Zealand, where the average house price now tops $1.8 million.

Tewa Banks latest

And it has five other projects underway, including Arrowtown's Tewa Banks, where it is building 68 homes on land donated by Queenstown Lakes District Council, including public housing, affordable rentals, rent saver and 44 secure homes.

"It's moving along really well," Scott says. "SouthRoads completed asphalting before the winter deadline, so we expect to have civils works fully completed next month. And we're well into that first stage of construction, with 15 homes due for completion in September."

Contractor Breen is expected to begin stage two construction, another 18 homes, in early August.

Scott says the Trust is looking to formally announce the three central Government funding streams supporting the four different housing programmes at Tewa Banks, in an official opening with the Housing Minister Chris Bishop in spring.

"He's been super supportive of our work, particularly around the fact we work broadly across the housing continuum, and give people the opportunity to move out of public housing into affordable rentals, into rent to buy, and into assisted ownership," Scott says.

One of Bishop's criticisms around Kāinga Ora is that there is no incentive for people to move out of public housing and no opportunities but the free market.

"With our programs people are given these additional steps to get there. There's more incentive to help people moving along, and also all the wrap-around support services that we provide. That's a big part of it, working with people, sending them to the right budget advice, debt consolidation, all that type of thing."

Westpac pledge

Last week, Westpac New Zealand announced it has set the target of $1 billion in lending to affordable housing solutions over the next three years, as it looks to support the sector.

The target follows the publication of the Westpac NZ Shared Home Ownership Report, authored by Deloitte, which found home ownership has fallen from 75% in the early 1990s to less than 60% today and is on track to fall below 50% by 2048.

"We haven't heard the specific details around where the lending will go, but the indications are it would be both to providers and the home owners," Scott says. "Generally, we welcome it and if they're able to continue offering favourable rates to us and others, then that's a really good outcome."

There are now almost 1000 local households on the Trust's waiting list.