Following consultation with the community in 2019, Council divested its community housing portfolio to Kāinga Ora and established a $12 million Housing Reserve using the proceeds.

The Reserve has been established on the basis that its purpose would be ‘to work with and support partners who have the ability to deliver good quality social and affordable housing solutions for the community’.

Between 2021 and 2023 Council developed the criteria for applications to the Reserve. Applications opened to iwi trusts and those who are registered as not-for-profit Community Housing Providers by the Community Housing Regulatory Authority.

Applicants need to have a local presence and be well-positioned to deliver new affordable housing in Whakatū Nelson.

We know housing is a pressing issue for our community. Council wants to ensure support is being provided to our vulnerable and high need residents to find safe and secure housing. Expanding the purpose of the Reserve would enable Council to support vulnerable housing projects as well as social and affordable housing.

Retain our current approach

The current purpose of the Housing Reserve Fund would remain unchanged. The Fund would continue to be used by Council to work with and support partners who have the ability to deliver social and affordable housing solutions for the community.

Cost: There is no impact on rates and as the reserve is distributed our net debt will increase because the reserve will no longer offset external borrowings.

Broaden the purpose of the Housing Reserve Fund to enable it to be used to provide vulnerable housing support (Council’s proposal).

Our proposal is to broaden the purpose of the Housing Reserve Fund so that Council could also support and work with partners to develop and provide accommodation for our vulnerable and highest need residents, in addition to continuing support to deliver social and affordable housing. For example, this would enable Council to financially support the development of a night shelter in Nelson.

Cost: There is no impact on rates and as the reserve is distributed our net debt will increase because the reserve will no longer offset external borrowings. The broadening of the purpose of the housing reserve could mean the remaining housing reserve will be spent faster, and as a result be unavailable for other social and affordable housing solutions for the community.