Christchurch City Council is placing its social housing portfolio in a new non-profit entity.
The idea is the brain child of deputy mayor Vicki Buck.
It has raised some eyebrows in the Garden City coming from a council player who has been associated with major council enhancement projects in the past.
According to the latest incarnation of the idea the council will place up to $50 million worth of land and other assets from its social housing portfolio into the new company.
The government has also agreed to invest $75 million through a new Christchurch Housing Accord Fund.
It is unclear if this is new spending or money that would otherwise have been allocated to Housing NZ’s repair and replacement of Christchurch housing stock post-earthquakes.
The plan aims to overcome the council’s inability to fund its own social housing replacement stock and maintain it without subsidies from already stretched ratepayers.
The initial proposal included plans for private investors to take stakes in building and owning some properties.
According to Ms Buck, placing the social housing in a non-profit entity allows tenants to qualify for state income-related rent subsidies.
There are plans to develop two villages of 180 homes on council-owned land in Colombo St (the former Sydenham School site) and Welles St.
Today’s council decision comes after consideration of significant public feedback on its proposal.
A total of 478 submitters provided comment, with the majority of those supporting the council holding up to 49% of the shares in a limited liability entity that leases the Council’s social housing portfolio.
Council staff will now investigate details and options for the entity’s structure, with a view to providing further advice to the council as soon as possible.
Chris Hutching for NBR NZ Property Investor
Fri, 19 Sep 2014
Fri, 19 Sep 2014
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Christchurch capitalises new housing entity
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