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Government and Wellington City Council sign social housing agreement
19 July 2007
The government and Wellington City Council have formalised a $220m agreement struck earlier this year to upgrade social housing in the capital.
A Memorandum of Understanding was signed in July by Housing Minister Chris Carter, Wellington Mayor Kerry Prendergast and Housing New Zealand, setting out the terms of the agreement and how the government, the council and Housing New Zealand Corporation will work together.
The agreement will see the government grant the Wellington City Council up to $220m over the next 10 to 15 years to help upgrade the council's 2400 social housing units to improve their safety and security, and ensure they meet modern living standards.
In return, the council has agreed to reinvest rental income from its social housing back in to its housing business, fund all other replacement and renewal costs for its housing, improve its tenancy management, and remain in social housing for 30 years at current service levels.
"Providing people from all walks of life with good-quality, affordable rental housing is a priority for the Labour-led Government, which is why we are working with the Wellington City Council to secure the future of its housing stock,” Mr Carter said.
"The agreement we have signed today protects a vital social asset for the Wellington region, and will help improve the quality of life for more than 4000 people."
Mr Carter said the agreement was the result of a great deal of work, negotiation, and goodwill between the Government and the council.
"Provision of social housing is both a government and a community responsibility. The type of partnership approach to social housing enshrined in this agreement is the way of the future, "Mr Carter said.
Wellington Mayor Kerry Prendergast said while the council wanted to retain its housing portfolio, and ensure Wellington's vibrant and mixed communities continued, the cost of upgrading the units was something the council could not bear alone.
"The size and range of the council's housing stock complements the nature of the social housing provided by central government in Wellington, which is why we approached the Government for assistance."
The council currently houses around 4000 people in its mainly one- and two-bedroom central city units, complementing Housing New Zealand's 9000 state houses for larger families, which are located throughout the Wellington region.
"Housing New Zealand has been working closely with the council on this project for some time now,” says Chief Executive Dr Lesley McTurk.
"The partnership which has developed as a result of this work reflects Housing New Zealand's commitment to working with other organisations to provide good quality homes to those in need,” Dr McTurk said.
"Encouraging and supporting other agencies to provide social housing is an important part of Housing New Zealand's role. We do this through our Housing Innovation Fund and in special situations such as Wellington city.
"Council tenants can now look forward to larger, warmer and quieter homes and rest assured that the council will continue to provide social housing for the next 30 years."
The next steps are for the council to develop a detailed programme of work to undertake the tasks required to improve the housing stock. This planning will be done in collaboration with Housing New Zealand.
Media Contact: Nick Maling, press secretary, ph 04 470 6874, 021 890 170
