Making Homes Happen

News IconCase Study

A straightforward negotiation and transaction led to the creation of the first retained affordable units within a Special Housing Area in the Auckland Region.

case-study-1-1

Under the Special Housing Area provisions, developers of 15 or more dwellings have three options to meet the affordability requirements. These are that 10% of the development is “relative affordable” or 5% is “retained affordable” or a combination of the two is met.  In turn, the retained affordable provisions require that units are sold at a price where the monthly mortgage payments do not exceed 30% of the Auckland median household income. Purchasers must either be a registered community housing provider or be Housing New Zealand Corporation.

Three retained affordable homes will be built in a cluster as part of a bigger 59-unit mixed typology greenfield development at 130 Hobsonville Point. The development neighbours the rapidly developing community known as Hobsonville Point and the area is supported by good community facilities and services including schools as well as an array of cafes and other retail and commercial outlets.

The New Zealand Housing Foundation will purchase the three sections for use as retained affordable houses. The New Zealand Housing Foundation will build the 3-bedroom homes with an additional room that can either be used as another bedroom or for an office or den area. The houses will be indistinguishable from the other homes that will eventually surround them as part of the wider development taking place on the site. Construction of the three retained affordable houses is expected to commence in Q4 2015.

The New Zealand Housing Foundation is a not-for-profit, charitable trust delivering affordable housing for low income households in neighbourhoods that work for low income and disadvantaged households.  The Housing Foundation also supports many other community providers to also provide affordable housing in keeping with its focus on developing communities and growing strong, safe neighbourhoods. The Housing Foundation enjoys the backing of leading philanthropic organisations, including The Tindall Foundation and is supported by central and local government in many of its developments and programmes.

The Housing Foundation has already completed a number of residential developments across Auckland through its “affordable equity” programme that offers co-ownership of the house between a client and the Housing Foundation. This programme has proven very popular for first home buyers. The Housing Foundation also offers other affordable housing programmes such a “no deposit affordable rental” programme or a similar programme can be tailored to meet individual needs and circumstances. The three retained affordable homes created as part of the 130 Hobsonville Road development will further the Housing Foundation’s important work in securing affordable housing for Auckland residents.

The development of three retained affordable dwellings as part of a 59 -unit mixed typology development within a Special Housing Area.

Last modified: September 21, 2015

Making Affordable Homes Happen is proudly brought to you by