Social housing boost for city

A social housing trust is likely to receive a $30 million loan from Christchurch City Council to build 130 new homes across the city.

But some social housing supporters believe the council should be doing more to increase the number of social housing units.

Christchurch Progressive Network spokesman Steven Howard told the council’s social, community development and housing committee yesterday the council needed to do more an become a leader in the provision of social housing.

‘‘Every child in Christchurch should have a warm, dry home before a rugby stadium is built.’’

The council made provision for the $30m loan in the 2018-28 long term plan earlier this year, but the recipient of that loan has yet to be decided.

The committee decided on Wednesday the $30m should go to the O¯ tautahi Community Housing Trust, which was set up by the council in 2016 to manage the day-to-day running of its 2400 social housing units. However, the full council will make the final decision.

The money would enable the trust to build 130 new homes over the next two to three years, but would not be enough to meet the council’s goal of supplying an additional 500 social housing units over 10 years.

Council facilities, property and planning head Bruce Rendall said the council had tasked him with providing 500 more social housing units within 10 years, but had given him no money to achieve it.

The loan was the first step in the council increasing its number of social housing units, he said.

Ratepayers would not incur any costs regarding the loan because the trust would cover all costs including interest.

As a new organisation with limited balance sheet, the trust was not in a position to borrow enough money to meet the upfront costs of the development, a council report said.

The public was consulted on the loan and it received 58 submissions. More than half (55 per cent or 32) supported the proposal, 26 per cent (15) did not support it and 19 per cent (11) had some concerns.