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What assessment criteria did you use when deciding what social housing projects would go ahead?
When we assessed the 466 social housing projects, we prioritised the locations where we are being asked to deliver new homes, or where upgrading our older homes is a high priority.
We also assessed the costs and proposed plans for the project, checking if they still stacked up financially, or whether there were better options for using the site.
How many homes will be provided through the 254 projects you are proceeding with?
Subject to final designs, these 254 projects will provide 1,821 homes. It is important to note that these projects are all at different stages of the planning process and in most cases, there is still design and feasibility work to be done before a final decision is made to contract the building work.
How many homes were going to be provided by the 212 projects you are not proceeding with?
Those projects would have provided 3,479 homes.
Why are you stopping so many housing projects?
The number of new homes we deliver is dependent on the funding we get from the Government. Over the two years to June 2026, we have funding to add 2,650 new homes to the state housing stock. We need to build those homes in the priority areas identified through the Government’s Public Housing Plan. In addition, over the same period, around 3,000 Kāinga Ora homes will be renewed, delivering warmer, drier and healthier homes for people in need, in the right locations.
In what locations are the projects you are stopping?
The social housing projects we are no longer proceeding with were proposed for sites throughout the country. Download the full list of projects not proceeding [XLSX, 35 KB].
Are there any projects that are still under review?
Yes –our planned Arlington project in Wellington is still under review.
Options for the Arlington site have been developed following a detailed assessment process, which has considered value for money and cost-effectiveness alongside the need for social housing in central Wellington. A briefing on these options has been provided to the Government, with Ministerial consultation required due to the size, complexity and cost implications of any redevelopment of the site. Depending on Ministerial feedback, an indicative business case for any preferred option, including costings and construction timeframes, will be finalised for consideration by the Kāinga Ora Board later this year.
What happens now with the sites you’ve decided not to build on? Will they be sold?
In most cases we are still assessing options for the sites. We may look to rework plans for a site or sell it.
For some sites we may need to wait for future decisions as part of our renewals programme. In a few cases where the decision was made early on in our assessment process to cancel the project, the site may already have been sold.
If there are homes on the sites, will they be brought back into the letting pool? Will tenants who were living in the homes be allowed to move back?
Where possible we will bring existing homes back into our letting pool. This has already happened at some sites.
The tenants who were moved out of those homes have all been moved into other Kāinga Ora homes. If a previous tenant wanted to move back, we would have to look at it on a case-by-case basis as there may be others with a more serious housing need or higher priority on the Public Housing Register at that point in time.
What’s included in the write-downs?
The money being written down represents the sunk costs spent on these projects during their initial scoping and planning phases and mainly relates to professional fees. These costs are typical across the wider construction sector in the early stages of a project.
Why didn’t you make provision for these write-downs in your budget?
Every year we budget for some write-downs – it's something every prudent developer does as not every project started will prove to be feasible or economically viable. This amount we’re writing down is significantly more than the $21 million we had made provision for in our budget. That’s because our reset reviews have highlighted an abnormally high number of projects and land holdings that no longer make sense for Kāinga Ora if we want to get ourselves in a better financial position. As we have exceeded our savings targets in other areas, we can largely offset the costs.
What is the breakdown of costs for the projects?
We won’t have a final breakdown of costs for these projects until our audit process is completed after the end of this financial year. That’s why we’re only giving a range for the value of write-downs at this stage. A breakdown of the range by territorial authority is available.
We will have an exact figure once we’ve finished auditing.
More information
- Download the Project assessments and write-downs information sheet [PDF, 249 KB]
- Download the full list of projects no longer proceeding [XLSX, 35 KB]
What land are you selling?
We currently plan to sell about 36 hectares of land that is no longer needed for either new social housing projects or for urban development work. That includes:
- 4.5 hectares of land in Alfriston, which the New Zealand Transport Agency is going to acquire for a roading project.
- Larger sites that were acquired with the intention of delivering a mix of both market and social housing, including:
- 80 Don McKinnon Drive, Albany, Auckland
- East Street, Drury, Auckland
- 98-100 New North Road, Auckland
- 46 Mangere Road, Auckland
- 18 Totara Avenue, Auckland
- 132 Adelaide Road, Wellington. Note, this site is separate from the site at 28 Adelaide Road purchased under the Land Programme.
- Smaller vacant sites across the country which are not needed for social housing projects.
The remainder of the vacant land we own, we’ll hold onto for future development and renewal of our housing stock. It makes sense to do this, rather than selling it and needing to buy land again in the future.
Can you provide a list of the smaller sites that you intend to sell?
To ensure fairness and a level playing field in an open market selling process, we don’t usually share information about specific sites until the property is ready for sale. It is possible some sites currently earmarked for sale may need to be reconsidered so the list of sites we’re selling could evolve.
When will you start listing the sites on the market?
About 4.5 hectares of Kāinga Ora owned land is already on the market or in the process of being put on the market. We'll begin listing other sites for sale over the next 12 to 18 months. We want to get the best price possible for the land so the exact timing of when we will list sites for sale will depend on market conditions and other variables that could impact on price. For example, with some larger sites we may look to subdivide before we sell to maximise their value.
How will the land be sold?
Generally, as sites are confirmed for sale, they will be listed and sold on the open market by an appointed real estate agent. Larger development sites may require different sale approaches.
As sites are put on the market, we will share details on our website.
How much of the land being listed for sale is zoned for housing?
Most of the land earmarked for sale is zoned for housing. Where land isn’t already zoned for housing, we might look to get it rezoned before putting it on the market.
How much do you expect to earn through land sales?
The land currently earmarked for sale has a book value of about $132 million, but the price we get for it will depend on market conditions and what buyers are willing to pay for it.
Will you offer any of the land to Community Housing Providers?
The land will generally be sold through open market processes. Community Housing Providers are welcome to express interest through this process.
Is it possible that other land will be sold in the future?
Like any developer, we are continually reviewing the land we own to see if it still fit for purpose and as such, it is expected that the divestment of sites will be an ongoing process. It is likely that further sites will be added to our divestment programme in the future.
It is also important to note that while we have finished our review of vacant land, in reality this work doesn’t stop. Market conditions are continually evolving, demand for new housing can change, and more detailed due diligence may mean sites intended for redevelopment no longer work for us, or conversely, sites earmarked for sale may need to be reconsidered.
The four large sites we purchased when Kāinga Ora had an urban development mandate that included increasing the supply of build-ready land for all types of housing, may also be divested, following the Government’s decision to wind down the Land Programme.
Why does Kainga Ora own so much land?
It is important we have a strong supply of land available for future social housing developments because one of the biggest challenges with predictably delivering additional housing is securing land.
Under the previous government, Kāinga Ora was tasked with delivering a large volume of new social housing. Additionally, we had an urban development mandate that included enabling broader housing supply. We acquired land to meet the priorities of the government’s housing programme at the time. The agency delivered housing on most of the land it purchased. Some of the larger sites we acquired were intended for comprehensive residential development with a mix of social, market and affordable housing.
For more information
Due to the scale and pace of our national divestment programme, we will generally be unable to respond to queries relating to individual properties for sale. Data on the sale of Kāinga Ora properties will be available through public records once the property transaction has been completed.
The following information is provided to assist with stories on our property sales. If needed, the information can be attributed to a Kāinga Ora spokesperson.
Why are you selling some homes?
As the owner of nearly 75,000 properties, it’s important Kāinga Ora takes a strategic approach to managing our portfolio. This means continually working to improve the quality of our housing stock and delivering the right housing to the people that need it.
Some of our existing homes are no longer suitable for our tenants and have reached the end of their life as social housing. It makes economic sense to sell these homes and use the proceeds to build new ones that are warmer and drier, the right size and in the right locations.
It’s important to note we are not reducing the number of Kāinga Ora homes. For each existing Kāinga Ora home sold, a newly built home is delivered elsewhere.
How many homes are you going to sell?
We intend to sell approximately 900 homes over the next 12-18 months – representing around one percent of our current portfolio. There is not a definitive list at this early stage, and assessing homes that will be sold is an ongoing process.
Where are those homes located?
These homes will be in regions across the country, with about a third of them in Auckland. Decisions to sell specific sites will be ongoing, and at any one time there will be properties at various stages of the process.
How do you select homes for sale?
A wide range of factors come into play when we assess which homes should be held and which homes should be sold. Age, location and potential for future redevelopment are key considerations, alongside the value of the property. We also factor in the availability of suitable, alternative housing for tenants living in the homes we’re looking to sell.
What will happen to Kāinga Ora tenants if their home is sold?
If there are tenants living in a home we plan to sell, we will support them to move to another Kāinga Ora home, carefully considering their needs in matching them to a home and community.
If the tenant living in the home doesn’t want to move, will you still sell it?
We will work closely with any tenants whose circumstances mean that a move will be particularly challenging. However, where a home will be sold, tenants will need to relocate, and we will offer them an alternative home that is suitable for their needs and support them with the move.
How much money do you expect to raise through selling these homes?
We estimate total sales proceeds of around $400-$500m per annum, which will be redirected toward new replacement homes. It’s important to note we are not reducing the number of Kāinga Ora homes. For each existing Kāinga Ora home sold, a newly built home is delivered elsewhere.
What’s the sales process for the homes you are selling?
Generally, as properties are confirmed for sale they will be listed and sold on the open market by an appointed real estate agent. Where sites are subject to First Right of Refusal, we will meet our Treaty obligations and provide iwi with the first opportunity to acquire those sites.
How have you chosen the real estate agents?
Real estate agents are selected through standard procurement processes.
Will the homes all be listed at once?
No. At any point in time there will be properties at various stages of the process, and homes will be going on the market at different times throughout the year.
How do you determine the asking price for the homes?
We use independent valuations to inform the starting price point for our property listings. What the property ultimately sells for is determined by the market. We are always looking to get the best possible price for the properties we are selling, so like any other prudent property owner we consider local market conditions before listing a property.
What marketing strategy will be used to sell these homes?
That will be determined based on advice from the appointed real estate agent. Depending on market conditions and individual circumstances, the marketing strategy for a property may change during the sales period. This is not unusual across the property market.
Have you sold homes before?
Selling homes or land is not new for Kāinga Ora. Just like any other property owner or developer we continually assess our housing stock and sell where we need to. We’re just doing it on a larger scale now, with more of a focus on renewing our homes.
This approach means we are releasing more homes into the market for all New Zealanders. While they may no longer work for social housing, there is an opportunity for buyers and developers to invest in the future of these sites.
Is Kāinga Ora selling vacant land, as well as properties with homes on them?
We will look to sell some land that no longer meets our core objectives. Through selling vacant land surplus to requirements, Kāinga Ora is also providing an opportunity for the market to deliver new housing. Identification of land for sale will be ongoing, as we determine which sites should be retained for potential development later and which ones could be sold.
How will you sell the land?
Generally, as sites are confirmed for sale they will be listed and sold on the open market by an appointed real estate agent. Larger development sites may require different sale approaches which could include direct to developers and build partners in a similar way as the plots of land in our large-scale urban development projects are.
Where sites are subject to First Right of Refusal, we will meet our Treaty obligations and provide iwi with the first opportunity to acquire those sites.
Will money from the sale of land also go towards renewing your housing?
Proceeds from the sale of land will either be reinvested in our housing stock or used to reduce debt.
More information
- Selling Kāinga Ora properties
- Download the 'Selling Kainga Ora properties' information sheet [PDF, 182 KB]
Tenancy issues
How do you deal with serious disruptive behaviour?
- Our job is to provide tenants with a stable home for as long as they need it. In return, we expect them to be good tenants and neighbours.
- On 1 July 2024 we implemented a new approach to managing tenancies and strengthened our response to disruptive behaviour.
- Our approach is about being fair but firm. When disruptive behaviour occurs, we work to understand what’s driving behaviour and refer tenants to specialist social and health services to address underlying issues if needed. Alongside this, we are also making earlier and more frequent use of the tools available under the Residential Tenancies Act (RTA) to drive behaviour change and provide a clear deterrent for disruptive behaviour.
- If behaviour does not change, we will end tenancies when we need to and not offer the tenant another home.
- Our approach is designed to provide a clear deterrent for disruptive behaviour and encourage behaviour change through making effective use of the tools available to us under the RTA.
What RTA tools do you use?
- We can make it clear to tenants that their behaviour is unacceptable, and their tenancy is at risk by issuing a Section 55A notice under the RTA. If a tenant receives three Section 55A notices within a 90-day period, then we can and will apply to the Tenancy Tribunal to end their tenancy.
- There are specific requirements in the RTA that must be met in order to issue a notice. This includes ensuring there is evidence of the disruptive behaviour and that the behaviour can be clearly linked to either the tenant or someone at the home with their permission.
- In limited situations that are severe, persistent or threatening, or where a tenant’s behaviour significantly breaches their tenancy agreement, we can and will apply to the Tenancy Tribunal to end a tenancy under section 55 or Section 56 of the RTA and not provide the tenant with another Kāinga Ora home.
- Data on our use of the RTA tools is published regularly on our website.
What is the difference between ending a tenancy and eviction?
- Eviction is a specific process involving the Tenancy Tribunal and District Court which only happens if a person refuses to leave the property after their tenancy has ended.
- In almost all situations, Kāinga Ora can resolve a situation without needing to resort to eviction.
More information
- Most Kāinga Ora tenants – almost 90% – pay their rent on time and are up to date with their rent payments. When tenants do fall behind on their rent, we work quickly to address it and help get them back on track.
- In February 2025, Kāinga Ora announced changes to its approach to managing rent debt to speed up repayment and address historic issues.
- We are focused on reducing rent debt by taking a firmer approach with tenants who are behind on their rent. We will be fair and reasonable – but rent must be paid.
- Kāinga Ora will continue to support tenants who fall behind on their rent and are making genuine efforts to get back on track with what they owe. This includes working with tenants to understand and resolve the root causes of the debt and get a reasonable repayment arrangement in place. Kāinga Ora also refers tenants to specialist financial and budgeting support services where possible – and where the tenant agrees.
- We are taking firmer action with tenants who regularly skip payments and refuse to work with us. In those cases, we will take steps to end the tenancy.
- Our new approach seeks to ensure that tenants will not have accumulated more than 12 weeks’ worth of rent debt when their tenancy is ended. This means we will begin the process of ending a tenancy earlier than in the past.
Partial rent debt forgiveness
- A small number of Kāinga Ora tenants – less than 3% – accumulated more than 12 weeks’ worth of debt before our new rent debt policy was introduced.
- There are a range of reasons for this, including social and economic events over the past five years and the steps Kāinga Ora took to respond to government policy, particularly during the pandemic.
- Kāinga Ora is taking a pragmatic approach to helping these tenants with significant rent debt get on top of what they owe faster by reducing the amount owed down to 12 weeks’ worth of rent. This is an amount that is more realistic for tenants to repay in full, with the right payment arrangement in place.
- Tenants will only be eligible to receive this reduction if they had more than 12 weeks’ worth of rent debt at the start of February 2025, are consistently paying their rent and making reasonable payments to reduce what they owe. In return for this one-off help, tenants must continue reducing their debt.
- This provides a clear incentive to tenants who are not currently meeting their obligations to change their behaviour and speed up repaying what they owe. If they consistently do this, they will be eligible to have part of their rent debt forgiven. But if they do not, we will take steps to end their tenancy.
More information
How is eligibility for social housing determined?
- Eligibility and priority for social housing is determined by the Social Allocation System administered by the Ministry of Social Development(external link) (MSD) based on need.
- MSD’s role is to assess and prioritise housing need and share the details of suitable applicants with social housing providers as homes become available.
What role does Kāinga Ora play?
- As a social housing landlord, the role of Kāinga Ora is to provide housing to those determined by the Social Allocation System to have the greatest housing need.
- When a Kāinga Ora home becomes available, MSD provides Kāinga Ora with the details of individuals and whānau from the Housing Register* whose housing and location needs match the property.
- Kāinga Ora then assesses this information, alongside any additional information gathered through conversations with applicants, to select the individual or whānau that is best suited to the home and community.
- Our placement process typically includes a detailed pre-housing conversation with the applicant to ascertain their needs, reviewing available properties, liaising with support services and other agencies if required, and having prospective tenants view the property.
*Media queries about the Housing Register should be directed to media@msd.govt.nz.
How much rent do Kāinga Ora tenants pay?
- Most of our tenants pay an income-related rent determined by the Ministry of Social Development, with the amount generally set at 25% of their net income.
- The Ministry of Housing and Urban Development pays the income-related rent subsidy to Kāinga Ora to cover the balance between the tenant’s rental payment and the market rent for the property.
- The market rent is set according to comparable rent charged for other properties of a similar type, size, and location.
More information
General information
- The core mission of Kāinga Ora is to manage and provide state-owned social housing.
- We are the country’s largest social housing landlord, with over 75,000 properties providing homes to about 191,000 New Zealanders.
- Tamariki (children) and rangatahi (young people) make up about 40% of the people living in Kāinga Ora homes.
- More than 97% of Kāinga Ora tenants are on low incomes and qualify for income-related rent.
- About 3,850 Kāinga Ora houses across the country are operated by more than 230 specialist Supported Housing Providers, either as Transitional Housing or Community Group Housing.
- Kāinga Ora builds additional social homes based on government direction, which tells us how many houses are needed and where they are needed.
- Over the two years to 30 June 2026, we will be adding 2,650 homes to our housing stock, bringing the total number of Kāinga Ora homes throughout New Zealand to around 78,000. We will do this through:
- removing old Kāinga Ora houses and redeveloping on the land
- working with construction firms to build houses
- buying completed homes from developers
- Kāinga Ora also has a focus on renewing existing homes to make sure our homes are in the right location and are suitable for the people that need them. We renew our homes through:
- renovating them through our retrofit programme, adding at least 50 years to their life
- removing homes and redeveloping on the same land
- selling the house and the land and replacing it with a new warm, dry home elsewhere
- Our focus on renewals means Kāinga Ora will strategically sell some social homes or land it owns. When we do this, we are not reducing the overall number of social homes. For each Kāinga Ora home we sell, we deliver a newly built social home elsewhere.
More information
What is Kāinga Ora’s approach to maintaining its homes
- Our portfolio of nearly 75,000 properties, and a commitment to ensuring homes are warm, dry, healthy and safe for tenants and their families, demands a significant maintenance programme and budget.
- Across all our maintenance programmes our budget for the financial year ending 30 June 2025 is $651m, and we expect to complete around 550,000 work orders. That’s more than one work order for every minute of every day of the year.
- The maintenance work we do falls into two sub programmes – planned maintenance, which includes proactive scheduled maintenance and upgrades such as painting, roof replacement and other routine work, and responsive maintenance generated by requests directly from our tenants.
- Our national maintenance contract includes five main maintenance partners, each covering a designated region, and around 10,000 trades across New Zealand operating 24 hours a day, seven days a week to take care of our homes.
- Kāinga Ora is currently looking at ways to transform all aspects of our maintenance delivery model to ensure we maintain our homes in the most cost-effective and efficient way possible. This is a key component of the Kāinga Ora Reset Plan.
Are vacant properties maintained?
- Yes. A home may be vacant between the end of one tenancy and the start of another, or for a longer period if the site is earmarked for redevelopment or the home is due to undergo major repairs or upgrades through our retrofit programme. During this time, we ensure the lawns are mowed and any rubbish is cleared away. We inspect and remedy any damage to the property or home, and we complete any necessary maintenance before a new customer moves in.
What is Kāinga Ora’s approach to lawn mowing and rubbish removal?
- Both activities are a tenant’s responsibility, and we make this clear when a tenancy is signed up, and in the tenancy agreements we use.
- We may assist with lawn mowing and rubbish collection where customers fall ill, are hospitalised, or have mobility or other challenges.
- From time to time, we pay for rubbish collection as part of community development initiatives, for example working with our neighbours and improving the look and feel of a street.
How do you manage mould in Kāinga Ora homes?
- We live in a climate with high levels of moisture, making us particularly susceptible to mould. It’s something that many landlords are faced with, and Kāinga Ora is no exception.
- The health and wellbeing of our people and whānau living in our homes is top of mind for us, and we know that serious cases of mould can have detrimental impacts on a person’s health. We take action when mould is identified, and we encourage our tenants to report any cases of mould to us, regardless of the cause or how much mould there is.
- A lack of proper ventilation is the most common cause of mould, and we encourage our tenants to open curtains and windows for short periods each day to let moisture-laden air out and fresh air in.
How often do you carry out property inspections?
- All tenanted Kāinga Ora homes are inspected at least once a year to check the general condition of the home and property, ensure smoke alarms are functioning, and that everything works as it should.
For more information
- Download the 'Looking after our homes' information sheet [PDF, 255 KB].
- Maintaining your home
- Transforming how we maintain and care for our homes
When was the Land Programme set up?
It was established in 2021 and allowed Kāinga Ora to borrow up to $2 billion to acquire and develop land to build-ready status.
What was the aim of the programme?
The programme aimed to increase the supply of build ready land across the motu, increase the pace, scale, and density of housing development, and increase the proportion of homes that were affordable for low-to-moderate income households, whether to rent or own.
What sites were purchased under the Land Programme?
There were four sites purchased:
- Ferncliffe Farm in Tauriko West, Tauranga
- 28 Adelaide Road in Mount Cook, Central Wellington
- 66 Quaifes Road, Christchurch
- Plimmerton Farm, Porirua, Greater Wellington
What’s happened to the Land Programme?
As part of the Kainga Ora reset, the Government has made the decision to wind down the Land Programme.
What does that mean for the sites you’ve already purchased?
We are currently working through options for the individual sites, including potential divestment. We hope to have an update on the status of the sites in the coming months.
If you decide to sell them, how will you do that?
Generally, as sites are confirmed for sale they will be listed and sold on the open market by an appointed real estate agent. Larger development sites may require different sale approaches which could include direct to developers and build partners in a similar way as the plots of land in our large-scale urban development projects are.
More information
Explainers and editorials
Our tenants can get permission to have pets in their home, but there are responsibilities that come with that. Nick Maling, General Manager – National Services, explains the approach Kāinga Ora takes.
Kāinga Ora supports tenants being able to keep pets – but they must be responsible pet owners and care properly for their pets. We know the issues roaming, abandoned or dangerous dogs can cause and want to make sure we play our part in helping keep both animals and communities safe.
There are a range of steps we can – and do – take if a pet belonging to one of our tenants is causing issues or being mistreated. While we’re not responsible for animal control (that sits with local Councils) or welfare (which is the role of the SPCA), there are steps we can take as a landlord. That’s why we ask people to also contact us once they have contacted either the local Council’s animal management arm or the SPCA.
Once we’re aware of an issue, we will work closely with the tenant and the appropriate agency to address the situation. This could include requiring the tenant to rehome the animal or, in severe cases, applying to end the tenancy.
We’re also focused on preventing issues in the first place. Our frontline teams work proactively with our tenants – alongside local councils, the SPCA and animal welfare organisations – to make sure they’re aware of their responsibilities as pet owners and connect them with practical support.
Take Counties Manukau for example. We know that roaming dogs is a problem in the area – and our frontline team is working alongside the council and community sector organisations to help address it, including:
- Partnering with community organisations and charities to provide practical support to our tenants. For many years, we have been partnering with community organisations to provide opportunities for our tenants to get their dogs de-sexed and microchipped for free as cost can sometimes be a barrier for tenants living on very low incomes.
- Focusing on making sure dogs are living at our properties with permission. We make sure properties are suitable for a dog and that they do not exceed the maximum number of dogs allowed by Council bylaws. If either of these conditions aren’t met, we use the tools available to us as a landlord to require the dog to be rehomed.
We’ve recently been reviewing our pet policy, looking at how it’s been working and how we can make it better. We’re making some changes to the policy, which will be implemented later this year. Those changes are about making it clearer and easier for our frontline teams to know what steps they need to take when a tenant wants a pet and making it clearer to our tenants what their obligations are.
Pet ownership comes with responsibilities, and we expect our tenants to take those responsibilities seriously.
Simon Moutter, Board Chair, Kāinga Ora
Our country has a proud history of providing social housing for New Zealanders in need.
Nearly every New Zealander, me included, will have a personal story of the important role social housing has played, either for themselves or someone they know.
But the need for social housing is not necessarily a ‘problem’ to be outsourced solely to the government or social housing providers to solve. It touches all of us.
This is why, when Housing Minister Chris Bishop called me last year to ask if I could contribute to creating a more sustainable, more efficient and more effective Kāinga Ora, I agreed to bring my business turnaround experience to bear on the challenge.
As a newcomer to public sector governance, it’s been a real eye-opener to see the difference between the perceptions of Kāinga Ora (and the tenants we house and support) and the organisation’s realities.
From everything I’ve seen, Kāinga Ora is full of passionate New Zealanders supporting other New Zealanders. I can say with confidence they genuinely care about people in need and want to do the best they can for tenants and the taxpayer. I acknowledge there’s a very small number of tenants that cause serious disruption for their neighbours and that’s completely unacceptable.
We are moving more swiftly and taking firmer action to address this, and manage rent debt, but these situations often play out publicly to help satisfy daily news, social media and talkback cycles and contribute to negative public perceptions of Kāinga Ora and our tenants.
Communities need to be more supportive of people in social housing and, we need to change some of the rhetoric around Kāinga Ora tenants.
The fact is, the vast majority of Kāinga Ora tenants are everyday New Zealanders who just struggle financially, lack family support or suffer from conditions which limit their ability to live well independently.
There are also limits to what Kāinga Ora can do in its role as a landlord.
Kāinga Ora must take tenants in priority order from the Ministry of Social Development’s Housing Register and is on the same legal footing as any other landlord, meaning we don’t have any special powers to “control’' tenants or choose who we give tenancies to.
We must act within the rules of the Residential Tenancies Act, like all other landlords.
That said, we know we must do better as a landlord, neighbour and publicly funded organisation and improve how we deliver new homes and maintain our housing stock.
To achieve this, Kāinga Ora is resetting to better serve New Zealand communities.
By getting back to basics on our core social housing mission, we will improve our ability to provide safe, warm, dry and affordable homes and be a good, supportive landlord for New Zealanders in need; while ensuring we can sustainably invest in social housing well into the future.
The plan outlines how we’ll improve our housing portfolio by efficiently and cost-effectively renewing and maintaining our older state homes as well as better matching housing to tenant needs.
Internally we’re improving the organisation’s performance, with a focus on cost-effectiveness and ensuring value for money.
As key operating improvement initiatives are embedded, Kāinga Ora’s financial sustainability will significantly improve.
We are committed to playing our part. But it’s not all on social housing providers to address this wider societal need.
We all have a part to play.
So, on that note, I ask, respectfully, that New Zealanders reconsider their attitude to social housing providers and to the people who live in the houses we provide.
The need for social housing in New Zealand to support those who can’t live independently without help is a societal problem.
It will not be addressed by wishing it away, ignoring it, or thinking that social housing is ok so long as it is not in my street or neighbourhood.
Communities need to be more supportive of people in social housing and we need to change some of the rhetoric around Kāinga Ora tenants.
Demonising or stereotyping social housing tenants is unhelpful and doesn’t recognise they are mostly well-meaning, house-proud people who need some assistance to get on their feet and hopefully transition back to independent living over time.
As we work to implement our reset plan, I also ask New Zealanders - and commentators - to give us a reasonable chance to prove we can do a better job – to prove we can build and renew houses at good value to the taxpayer, to support tenants to live well and to demonstrate we can move out the small minority of tenants who are not willing to pay rent or be good neighbours.
If we make mistakes we’ll fix them.
This year will be a year of significant change for Kāinga Ora.
We have a lot of work to do and a lot of previous decisions to reset before we will start seeing the results we want.
We have to accept that some of the resetting of past decisions will come at a short-term pain, but it’s the future that matters more.
Together with my board colleagues and re-energised management team, I will ensure we deliver significant performance improvements and I’ll be pleased to report our progress to the public in full.
As part of its reset, Kāinga Ora is changing its approach to managing rent debt to speed up repayment and address some historic issues. Chief Executive Matt Crockett outlines the changes that are being made and the reasons for them.
Over the past 12 months, our frontline teams have been working with tenants to reduce their rent debt. This has resulted in total rent debt falling from $21.6 million in January 2024 to $16.1 million at the same time this year.
But we want the amount owed to fall faster and to make sure we keep rent debt down in the future. So we are making changes as part of the broader reset of Kāinga Ora to address this.
New policy
We’re going to reduce debt by taking a firmer approach with tenants who are behind on their rent. We will be fair and reasonable – but rent must be paid.
We will continue to support households who fall on hard times but are making genuine attempts to get back on track with their rent. We’re a social housing landlord so that’s the right thing to do.
But, through our new rent debt policy, we are drawing a line on how patient we can be. We don’t want to end tenancies, but we will if tenants are not meeting their obligations to reduce their rent debt, are skipping rent payments or refusing to work with us.
We're also taking action to prevent large debts in future. Our new approach seeks to ensure that tenants will not have accumulated more than 12 weeks’ worth of rent debt when their tenancy is ended. This means we will begin the process of ending a tenancy earlier than in the past. This provides clarity about what will happen, and when, to both our tenants and our frontline.
Partial debt forgiveness
A small number of Kāinga Ora tenants – less than 3% - have accumulated more than 12 weeks’ worth of rent debt. There are a range of reasons for this, including social and economic events over the past five years and the steps Kāinga Ora took to respond to government policy, particularly during the pandemic.
We’re going to help those tenants get on top of their rent debt faster by reducing the amount owed to a level that is more realistic for them to repay in full. We’ll only do this for tenants who are consistently paying their rent and making reasonable payments to reduce their debt. In return for this one-off help, tenants must continue reducing their debt.
This will provide a clear incentive to tenants who are not currently meeting their obligations to change their behaviour and speed up repaying what they owe. If they consistently do this, they will be eligible to have part of their debt forgiven. But if they do not, we will take steps to end their tenancy.
We expect to forgive up to $8.3 million of the $16.17 million we’re owed. This is already provisioned for on our balance sheets as it is regarded as doubtful debt, so there will be no impact on our financial performance.
We think this is the right thing to do. The likelihood of collecting all this debt is low, given the time it will take tenants to pay it off and the significant costs associated with chasing it. We’re also conscious that during the pandemic the steps we took to respond to government policy meant we didn’t chase debt in the way we normally would, so we carry a measure of responsibility.
We’re being pragmatic. We think we’re better off focusing on recovering the remaining debt faster and ensuring current tenants do not get into too much debt.
All tenants whose debt is reduced will still have a significant amount to repay. And they’ll have a strong incentive to do this under our new policy, which it makes it clear we will end tenancies if tenants do not meet their rent obligations.
Looking ahead
It’s important we strike the right balance between supporting households in difficult circumstances and ensuring that our tenants meet their obligations. We will be closely monitoring the impact of both the new rent debt policy and partial rent debt forgiveness to ensure we have the right balance. If necessary, we will make further adjustments.
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