Thursday, December 7, 2023

$159m funding round to prop up housing developments

A $159 million fund to support housing developers in financial difficulty will soon open for a second round of applications.

The Government says the Build Ready Development pathway has allowed eight projects that otherwise would not have progressed, to get on with plans to build 144 homes in areas where there’s a high need for new housing.

“The housing developments are in South Auckland, Ngārauawahia, Tauranga, Napier, Hastings, Levin, Waikanae and Lower Hutt. Three of the projects now have construction underway,” says Housing Minister, Megan Woods.

“The pathway provides support to unlock third party finance and keep the development moving, so we don’t lose the critical supply of new housing to help fix the housing crisis we inherited,” she said.

As part of the criteria for the funding, developments must include the provision of affordable housing.

“The supply of new affordable homes fell off a cliff post-GFC, so these counter-cyclical measures help developers with a pipeline of work, to build more homes for New Zealanders,” Ms Woods said.

The second round is aimed at regional areas impacted by recent weather events, so developments in Hawke’s Bay, Tairawhiti and Te Tai Tokerau, will be prioritised, the Minister said.

The pathway provides developers who have eligible, build-ready developments that are yet to start construction, in regional areas of need for new housing, with two routes to Government support. These are either by selling ‘build-ready’ land to a suitable Government land acquisition programme, or by the Government agreeing to prepurchase or underwrite homes. 

The second round of funding opens from 29 May, with applications accepted until 16 June. 

Minister Woods says the Pathway, under the Affordable Housing Fund, is another initiative that will help deliver more homes for New Zealanders.

“This is an innovative way to help ensure more affordable housing is being built for Kiwis, while encouraging and supporting developers who would otherwise not progress these developments.”

Further information about the fund, the application process and a briefing date for potential applicants to find out more can be found at https://www.hud.govt.nz/our-work/build-ready-development-pathway/,” she said. 

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