No levy for social housing complex
Apartnership between Levin building firm Wayne Bishop Group and Salvation Army New Zealand has successfully applied to have a development contributions levy remitted on a multimillion-dollar social housing development.
The estimated bill for development contributions on the 52-unit social housing village - mooted as a solution to an emergency housing crisis was $570,498 plus GST.
Horowhenua District Council appointed an Independent Commissioner, Gina Sweetman, who in her decision said the development met the requirements for the remission of development contributions under HDC’s Contributions Policy 2021.
HDC could, at the request of an applicant, remit or reduce any development contribution, with one criterion being where a social housing development was expected to provide significant community benefit.
The applicant was represented at the hearing by general property manager Barry Judd, general business manager Nicky Brady, and Salvation Army New Zealand’s social housing national director Greg Foster.
Judd said in his submission that the project was born out of the HDC Housing Action Plan with a commitment to find a local solution to what is a “severe housing shortage and a chronic shortage of social and emergency housing”.
“There is an overwhelming need for social housing in Levin and the surrounding area. The demand far outstrips supply, and it is forecasted to get worse before it gets better,” he said in his submission.
“The Salvation Army Social
Housing team and WBG have worked closely to produce a design and build solution that helps with housing families who are urgently in need of housing.”
“This is a local solution to the chronic housing shortage.”
As at June 2020, there were 237 applicants on the Ministry for Social Development’s Housing Register in the Horowhenua District.
The 52-unit social housing complex of one, two and three bedroom units would be made up of 10 separate residential blocks and built on 9283 square metres at 29a Hinemoa Street.
The development, estimated to cost more than $15 million, would include a community hall, 46 car parks, an outdoor community area including a children’s playground, orchard, and a central administration block.
Salvation Army would staff the centre with one full-time tenancy manager and one part-time support person to connect residents with social support services and provide assistance with budgeting, food, health and whanau support.
The tenants will be selected by the Salvation Army Social Housing (SASH) and will typically comprise a mix of genders, ages and families, and would be those most likely to reside in the development for 10 or more years.
The Salvation Army would have two 15-year contracts in place; one with the Ministry of Housing and Urban Development for the provision of housing for people on the social housing register; and one with Wayne Bishop Group for the lease of the property.
The commissioner noted the Salvation Army had a proven track record and currently managed about 460 units at 25 villages New Zealand-wide.