Nelson will use millions of dollars raised from the sale of community housing units to support the development of affordable, social housing.
Kāinga Ora area manager Dale Bradley and Nelson Mayor Rachel Reese. Photo: RNZ / Tracy Neal
The council is to transfer 142 units to the Crown-owned housing agency, Kāinga Ora, for $19.8 million.
Kāinga Ora was established last October from three entities HLC (Homes land Community), KiwiBuild and Housing New Zealand to lead the government's urban development projects.
Twelve million from the Nelson sale will go into a specially set up housing reserve for affordable and social housing projects in the city.
The remainder will be held back for up to 15 years to help cover the shared cost of any upgrades, consents, and rent top-ups as required for tenants who do not qualify for the government rent subsidy.
The council approved the divestment plan in June last year, after public consultation.
Nelson Mayor Rachel Reese said the agreement prioritised the welfare of the city's 150 community housing tenants.
Nelson's newly elected Labour MP Rachel Boyack said the agreement would strengthen partnerships between the council and dedicated housing providers.
"Here in Nelson we have three community housing providers already operating, so Habitat for Humanity, Nelson-Tasman Housing Trust and Abbeyfield.
"Some of the challenges for these organisations have been things like access to land, or access to capital so what this housing reserve does is allow the Nelson City Council to partner with some of those agencies that already have really good capability and we know can deliver.
"There could be opportunities for others to come on board as well."
New Nelson MP Rachel Boyack is welcoming the partnership. Photo: RNZ / Tracy Neal
Boyack said the tailored partnership model between central and local government will be rolled out in other areas.
"It's a fit-for-purpose project that really fits our region and how we operate here that grassroots community organisations will be able to partner directly with council on projects we know will meet the needs of this community."
Reese said a newly established strategic development and property committee will help steer development of the planned social housing projects.
She said the council had been working with a variety of housing providers and developers - from the trusts to iwi to architects, to find out what social housing might look like.
"There are many models we can look at for creating affordable homes for people and this is where we're taking a very open approach."
Reese said it was important to maintain the investment in affordable and social housing.
"We've chosen to focus on what we see as the biggest issue - we don't see it funding what would be available for private sector apartment living in the city, but we would see it as potentially housing that may be available to support investment in affordable apartments for key worker accommodation."
Kāinga Ora area manager Dale Bradley said the community homes which the council had designated as pensioner housing would be added to the Ministry of Social Development's total housing stock.
There are currently 212 people in Nelson on the housing waiting list.
Kāinga Ora owned 563 properties in the Nelson City area and their acquisition meant that would increase to 705 properties owned and managed by the agency.
The new ownership will take effect in February 2021.
In the lead-up to the transfer, the council will work with Kāinga Ora, MSD and the Nelson Tasman Housing Trust to ensure community housing tenants were informed, reassured and supported.
