Housing Reserve Fund changes Debate

Community Wellbeing - Safety and Security

Option 1

The majority of comments supporting Option 1 emphasize the effectiveness of the current Housing Reserve Fund in delivering social and affordable housing, with a focus on long-term solutions rather than temporary measures like night shelters. Many respondents believe that the existing framework already adequately supports vulnerable populations and that expanding the fund's purpose could dilute its impact, potentially reducing the availability of funds for permanent housing projects. Additionally, there is a strong sentiment that maintaining the current approach aligns with successful international models, such as Finland's Housing First strategy, which prioritizes stable, long-term housing over temporary shelters to address homelessness more effectively.

Table of comments:

Point No	Comment
81.5	i think the housing going ahead at the moment is fantastic, especially social housing.
175.4	Social housing can include housing for the vulnerable
887.3	NPHS Te Waipounamu recommends retention of the current approach to support the delivery of social and affordable housing, where applications are open to iwi trusts and those who are registered as not-for-profit Community Housing Providers by the Community Housing Regulatory Authority.
1272.5	This fund should be used to continue to build homes, Habitat for Humanity and the Nelson Tasman Housing Trust are doing a good job. Broadening the purpose will dilute effectiveness and impact. Housing First should be a priority rather than the re-establishment of Night Shelters. Finland’s Housing First success has all-but eradicated rough sleeping, and led to the decommissioning of hostels and night shelters. It has done this, in part by building new housing stock.
1348.5	Nelson desperately needs more housing especially for vulnerable people. This proposal would significantly help many people who do not have somewhere safe to live. A night shelter for Nelson is desperately needed, with the cost of living crisis, increases in rent and increases in house prices leaving many without a safe place to stay. Broadening the purpose of the fund is an action which would benefit the least supported in Nelson
1433.5	Housing Reserve Fund changesTBCA supports Option 1- retain our current approach Council should continue to work with and support suitable partners to deliver social and affordable housing solutions for all who need it.
1502.1	Proposed Housing Reserve ChangesNTHT has concerns about Council’s preferred proposal (Option 2) and advocates for the current approach (Option 1). We really want to maximise the potential impact of the remaining Housing Reserve funds to deliver more affordable/social housing for Nelson. NTHT has consulted many times with both Nelson City Council officers and elected members over the past three years, working collaboratively to achieve the current, robust framework for the Housing Reserve, which has clear and fair criteria and a simple process.NTHT submits that adoption of Option 2 would dilute the impact of the primary purpose of the Housing Reserve to build local community housing capacity – “to achieve an enduring supply of new social/affordable housing in Whakatū Nelson, delivered by government registered Community Housing Providers (CHPs) and/or iwi trusts, who have a presence in Whakatū Nelson”. Council decided to work with established groups (CHPs and iwi trusts) in order to ensure providers would have sufficient organisational muscle to operate effectively over the long-term. NTHT submits that the Housing Reserve should continue to be focussed on providing additional community and iwi housing for Nelson as this is the primary need – while support for short-term interventions on homelessness is admirable, it would be best to give priority to growing the supply of long-term housing for the currently homeless. International research has concluded that a “housing first” strategy is the most effective way of addressing the homelessness cycle.  Overseas and New Zealand experience has found that homeless shelters are expensive, often unsafe, stop-gap efforts that perpetuate housing vulnerability. Night shelters with dorm-style rooms provide no privacy, tend to concentrate people with high and complex needs, and require people to leave during the day. Studies show that it is far better to focus on developing more, smaller permanent housing units where individuals can reside safely, receive the mental and physical health support they need, and have stability enabling them to develop skills to live independently, further their education and take on employment.  NTHT submits that the Housing Reserve Fund should support areas of need that are not already funded by central Government – The current National Government has committed to put attention into finding and funding solutions for temporary and transitional housing and for addressing the housing needs of households on the Social Housing Register that are in extreme housing stress. This has a slightly narrower focus than the previous Labour administration which, in the latter stages of office, broadened their funding base to include some support for affordable rental housing. As such, there remains a real need to help address the huge demand for affordable, safe and suitable housing for people on low or modest incomes who fall just short of meeting the threshold for Social Housing Register eligibility. The Housing Reserve Fund will continue to be an extremely important way to address Nelson’s needs in this area, and to complement, but not overlap with, the housing support provided by central Government. NTHT submits that expending the Housing Reserve more quickly by supporting homelessness solutions such as temporary shelter could severely threaten the ability of community and iwi housing providers to deliver enduring outcomes - NTHT supports the Housing Reserve’s goals to deliver affordable/social rental housing within 3 years of receipt of grant. This is in the interests of expending the fund as quickly as possible during a time of unprecedented need for affordable rental housing.  NTHT has also appreciated the quick turnaround of NCC’s processes for Reserve Fund applications. However, new housing projects require lead time to identify and acquire suitable sites, and for the appropriate due diligence and feasibility studies for what is a long-term commitment. The concern is that homeless shelters are inherently shorter term in their focus and thus due diligence and feasibility work can be less comprehensive and time-consuming, which means applications for available funds may be much more quickly compiled. They may leave limited, or no, funds left in the pool when community and iwi housing providers are in a position to apply. NTHT submits that the current approach (Option 1) recycles funding to housing in a way that was originally envisaged – proceeds for the fund came from the sale of the Council’s elder persons’ housing to Kāinga Ora. It is understood that, at the time, a benefit of sale was seen to be to support growth of yet more suitable long-term housing for community members in need in Nelson.NTHT Recommendation:  Do not dilute the purpose of the Housing Reserve, keep it focused on delivering an enduring supply of new social/affordable housing, and continue with Option 1.