Affordable housing is housing deemed affordable to those on a low income.
There is a shortage of affordable housing in Auckland, however Special Housing Areas (SHA) have been developed to help fast track the regulatory approval of 40,000 homes, approximately 4,000 of which will be designated as affordable.
In SHA developments of 15 or more dwellings, developers/landowners must provide affordable housing in one of two ways:
(A full description of the requirements can be found here)
|10% of dwellings must be affordable, i.e. sold at a price not exceeding 75% of the Auckland region median house price (published by the Real Estate Institute of NZ for the most recent full month of September).
In March 2015, this price was $461,250.
|5% of dwellings within the development must be affordable at a rent or mortgage repayment which does not exceed 30% of the Auckland median household income (published by Statistics NZ for the most recent June quarter).
In March 2015, this price was $368,286.
|Sold/rented to||First time buyers||Community Housing Providers|
|Can they be re-sold?||Yes – after three years, which means that the buyer can sell the property at a market rate. Therefore this option may not be retained as long term affordable housing in the Auckland market.||Only if the equity is retained – which means that even if a vacancy arises in a few years’ time, Community Housing Providers will always retain their equity in the affordable housing, and it will only be available for low income families in Auckland.|
Retained affordable housing is the preferred option for Auckland as it provides a unique opportunity to deliver affordable housing for low income households in a sustainable manner over the long term. It also fosters the development of truly mixed communities – including mixed tenure and mixed typologies – by developing partnerships between developers/land owners and community housing providers.
Click here to read some case studies about how this has worked in recent times.