Social Housing Recovery Burwood-Pegasus Ward - Paul Commons, General Manager Fraser Benson Area Manager Burwood-Pegasus Community Board meeting

Social Housing Recovery
Burwood-Pegasus Ward
       Paul Commons, General Manager
Canterbury Recovery and Redevelopment Programme

                Fraser Benson
                 Area Manager

 Burwood-Pegasus Community Board meeting
           Monday 1 September 2014

Housing New Zealand Canterbury Portfolio
 • HNZ is the single largest residential landlord. Pre-Earthquakes HNZ owned or managed 6,127 houses in
   Canterbury, this represents approx. 20,000 people.
      – 345 of houses are leased by HNZ from private owners.
      – 156 are Community Group Housing provided to government-funded groups or organisations that
           provide residential community services.

 • 95% of properties were damaged in the
    earthquakes.
 • Insurance claim was settled April 2013 for $320m.
  .
                                                               % of Portfolio by No. of Bedrooms
 • Current portfolio value $1.376bn.
                                                             1       2       3      4      5     6-10
 • Average age of properties - 42 years
                                                             9      42      39      8      1       1

 Approx. 200 properties are currently on the Hazardous Activities and Industries List (HAIL) indicating
 potential contaminated land.

 Through the repair and redevelopment programmes approx. 500 houses will be demolished due to being
 beyond economic repair.

 Currently there are more than 35 contractors working for HNZ across all work programmes.

 HNZ has committed to a five year programme in partnership with the Department of Corrections to refurbish
 30 properties each year and relocate them onto existing HNZ land.
 Beyond 2015, HNZ has a planned an investment of $1.2bn in Canterbury over the next 10 years.
 This investment will reduce the average age of our properties by 20 years and reconfigure the portfolio to
 better align with our tenants needs.

Repair and Rebuild Programmes June 2014

•   Our target is to complete all repairs by Dec 2015 and our    •   Currently we have completed repairs to just on 2000
    present rate of repairs of 200 properties per month show         homes, and built 80 new houses, with around 400
    we are on track to achieve this.                                 more under contract.
                                                                 •   Contract negotiations are underway for the balance of
•   The total number of repairs completed will depend upon the
                                                                     the 700 new builds target.
    number of properties identified as uneconomical to repair
    and the decision to redevelopment rather than repair.
                                                                 •   The rate of rebuilds will fluctuate as developments
                                                                     move through the procurement process which results
•   Pre – Earthquake we owned or managed 6,127 properties
                                                                     in increased delivery during the final quarter of 2015.
    in Canterbury. The aim of the repair and rebuild
    programmes is to return the portfolio to pre-earthquake      •   We are on track to meet our target to build 700 new
    levels by the end of 2015.                                       homes by Dec 2015.

•   215 properties identified as residential Red Zone
    transferred ownership to CERA in May 2014.

Burwood-Pegasus ward
Total 948 properties (27 leased)
• Currently 879 occupied
                                                          Repairs
 Rebuilds
                                                          • 557 completed
 Completed:                                               • Around 292 properties still to be repaired
 • 124 Rowses Road, Bexley (4 stand-alone houses)           - 106 major repairs; rest are minor
 • 61 Niven Street, Avondale (single house)               • Include Aranui, Avondale, Burwood, Dallington, New
 • 70 Avondale Road, Avondale (single house)                 Brighton, Parklands, Waimairi Beach, Wainoni

 To come:
 • 141 new units to be built on HNZ land including in:
   - Aranui: Merrington Crescent, Ventnor Crescent, and
 Hampshire, Aldershot, Corhampton streets, Breezes Road
   - Parklands: Lamorna Road
   - Avondale: Avondale Road and Niven St

 • Mix of two, three and four bedrooms

Housing New Zealand Fast Facts
Nationally HNZ:                                                     Social Housing Reform Programme
• Owns or leases 69,000 homes for around 200,000 people.
• Property portfolio is worth $16.4 billion.                        • Government policy to transform social housing sector
• Investing $2.9 billion nationally over three years to build new     to achieve better outcomes for those in need
  homes and upgrade existing ones                                   • Extending availability of an income-related rent
  - more than $1 billion on the Canterbury rebuild.                   subsidy for eligible high-needs tenants to approved
                                                                      social housing providers, e.g. Comcare
Last year :                                                         • Creating mandatory ‘warrant of fitness’ standards for
• Started around 6,900 new tenancies (657 in Christchurch)            social housing
  - 96 % were priority A or B applicants – those most in need.
• Took over 1.4 million calls to 0800 last year.                    Housing Assessment Transfer:
• Helped 8,000 people out of rent debt.                             • From April 2014 the Ministry of Social Development
                                                                      assesses people’s social housing need, as part of
                                                                      broader social needs assessment process.
Addressing housing demand                                           • Also administers income-related rent subsidies and
                                                                      are responsible for reviewing tenancies.
• Need more homes of one, two, four and five bedrooms,              • Result: MSD has a ‘bigger picture’ view of a person’s
  rather than traditional three bedrooms                              social needs, and the customer has a one agency
• Asset Management Strategy focusses on investing in areas            point of contact and a more streamlined service.
  of high demand; reducing numbers in other areas
• Selling houses in areas of low demand to first home buyers

Rightsize Project                                                   More than one front door:
• Building 500 2-bedroom homes on some of our larger existing       • People can call HNZ, 24/7 on 0800 801 601.
  sections over two years in Auckland and Wellington                • Tenants can walk into our offices around the country
• Adding 3000 new bedrooms to 2000 Housing New Zealand                such as at ACTIS and Linwood Link, or
  homes over 3 years to address the need for larger homes,          • Talk with our staff who visits tenants regularly.
  mainly in Auckland.