Arlington gets 300 homes
The Government will step in to help Wellington sort out its social housing shortage.
Wellington City Council is set to sign a deal with Housing New Zealand (HNZ) that will see the council’s vacant Arlington sites set up for about 300 KiwiBuild homes.
A failed partnership bid and funding issues have delayed the council development, but it is understood the state housing provider will now step in and sign a long-term lease for two of the Arlington sites for 99 years.
The sites, which span Arlington St, Hopper St and Hankey St, represent 12 per cent of the council’s entire housing portfolio.
This tranche of Government homes would go towards fulfilling the council’s $220 million deal with the Crown to retain its social housing levels for 20 years.
The first phase of Arlington, which is set for completion next month, involved demolishing the existing 57 apartments to make way for 104 modern apartments.
Another deal has been mooted that would see HNZ lease these for five years so it can home its Rolleston St tenants, while the Mt Cook site is being redeveloped next year.
It is understood the country’s first wet house is also set to be built in the Arlington complex.
Wellington Mayor Justin Lester previously floated the concept of building a wet house for homeless alcoholics, and talked with HNZ and the Ministry of Social Development about setting up the facility.
The wet house model changed to become Te Whare Okioki, the country’s first home for homeless people who suffer from chronic addictions.
The HNZ Rolleston St site was being considered. But in June, HNZ said it was planning to build a block of 20 supported-living units, which differed from
Lester’s concept.
It is understood push back on a wet house from the Mt Cook community saw HNZ alter its plans that now might see about 14 supported-living units included in the development.
A spokesman for HNZ said it had been talking with the council about opportunities to redevelop the Arlington site, to help meet the demand for more state houses in Wellington. He said HNZ was still working though options, but it is understood a deal is not far off. ‘‘With our Rolleston redevelopment, work is progressing on the Housing First supportedliving service we’re looking to have there. We’ll be updating the community on these plans in the coming weeks.’’
The Government’s KiwiBuild policy aims to build 100,000 homes over 10 years, with the first 1000 completed by July 1 next year.
On Friday, Housing and Urban Development Minister Phil Twyford announced 6400 public houses would be ready for occupants by June 2022, with 715 going to the capital.
Lester said the Government’s announcement was an opportunity for the region.
More than 2000 people have begun the KiwiBuild prequalification process for the first batch of 18 KiwiBuild homes.
They could have a long wait, with just 30 homes expected to be finished by the end of the year, and 1000 by next July.
KiwiBuild unit head Stephen Barclay revealed that at least 2230 people had started prequalification in a speech to the Affordable Housing Development Summit late last week.
It is not yet clear how many people have actually completed the pre-qualification process, which involves getting lending approval from a bank or other lender.
More than 41,000 people have registered their interest in a KiwiBuild home.
Barclay also revealed that just 13 of the 97 proposals to build KiwiBuild homes the unit received had been rejected, with about half of the total moving forward and the rest still in discussion.
Final deals have been signed on 14 separate projects providing about 800 homes over the next two years.
KiwiBuild is the Government’s plan to build 100,000 affordable homes over 10 years, with half in Auckland.
It defines ‘‘affordable’’ as under $650,000 for a three-bedroom home in Auckland or Queenstown, under $600,000 for a twobedroom home in Auckland or Queenstown, and under $500,000 for any home outside of those areas.
Barclay noted in the speech he hoped KiwiBuild homes would exceed building standards and set a new ‘‘KiwiBuild standard’’.
‘‘The sheer scale of KiwiBuild means we are well-positioned to look at best practice from across the world, and deliver a new and comprehensive KiwiBuild Standard which New Zealanders will come to know and trust.’’
He said it was ‘‘important to demonstrate KiwiBuild has momentum’’.
‘‘The bottom line is, we’re very proud to say that the first KiwiBuild home buyers will wake up on Christmas morning 2018 in a home of their own.
‘‘Just in case there are any sceptics still left out there, let me be absolutely clear, KiwiBuild is here, the deals are being done, and these homes are being built,’’ Barclay said.
The ‘‘sceptics’’ he was referring to span a wide range of people. National has naturally asked whether the Government will be able to meet its targets without simply taking capacity out of the private sector. Treasury has also downgraded its estimate of the additional investment that KiwiBuild will bring.
National has particularly criticised the notion of KiwiBuild buying homes ‘‘off the plan’’ from private developers for its first years of operation.