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Affordable housing scheme launched

Posted on: December 18th, 2015 by gherkinmedia No Comments

Thirty per cent of the properties at the Hobsonville Point project will sell for $550,000 or below.

By Anne Gibson

Two hundred new residences are planned for Hobsonville Point, half of which will be priced under Auckland’s median house price and 30 per cent selling for $550,000 or below.

The new affordable housing scheme was announced today by NZ Super Fund chief investment officer Matt Whineray, Ngai Tahu Property’s incoming chief executive David Kennedy and New Ground Capital’s Roy Thompson. The places are to be finished by late 2018.

The investors are buying 1.95ha of ex-defence force land from the Government-owned Hobsonville Land Company, a Housing New Zealand subsidiary. The fund and the iwi will each put in 48 per cent and New Ground the remaining 4 per cent.

Three-quarters of the homes will be sold as they are developed but the remaining quarter will be rented out long-term.

Kennedy said the company saw the project as a perfect entry into the Auckland market, and an opportunity to develop a strong partnership with the Super Fund.

Hobsonville Point had proved to be a successful master planned development, he said.

Whinerary said the project was the first with Ngai Tahu but the two had compatible values.

Ngai Tahu will act as development manager, overseeing construction while New Ground Capital will run the rental component of the project.

Source: NZ Herald (http://m.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11562794)

Auckland Council wants to halve median house prices

Posted on: October 18th, 2015 by gherkinmedia No Comments

CATHERINE HARRIS

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Auckland deputy mayor Penny Hulse (pictured) says the council is doing its bit to bring house prices down.

Auckland Council has set an ambitious target to improve the city’s housing affordability.

It wants to see median house prices in the city fall to five times media household income, which in today’s terms would be about $400,000.

The target was set by the council’s development committee, after receiving a hard-hitting housing report from its chief economist Chris Parker.

“At the moment, it takes nine to 10 times your average salary to buy a house in Auckland. The average household salary is around the $80,000 mark, average house prices around the $800,000 mark,”‘ committee chairwoman and deputy mayor, Penny Hulse said.

“We’re saying over the next 10 or 15 years we want to bring it down to one in five, which means in today’s figures an average household salary of $80,000, average house price down to $400,000.”

Hulse said the target would not be easy to hit, and would involve a continued focus on working with the Government, developers, and community housing providers.

“There’s no silver bullet and it takes a whole lot of people collaborating.

“Each of us has a different part of the work to do, so for council it’s about simplifying our planning rules, simplifying our design requirements, making sure we’ve got enough land supply and enough infrastructure to deal with that increased land supply. And looking at how we can work with the building sector at how we can reduce the actual cost of building houses.”

The committee has also asked Panuku, its new development arm, on the best sites for three key new housing projects using council-owned land.

“We just handed them a long list of areas and they’re going to come back to us with a short-list in December.”

Panuku would potentially partner up with Crown land as it had in the Tamaki and Hobsonville housing projects. Council partnerships with developers meant the council had more say on the proportion of affordable or social housing in such developments.

Working with private developers also meant the council could have a say in getting the right mix of housing.

In some areas it was not social housing but affordable housing that was the most urgent need, she said.

Other times, a greater focus on townhouses and apartments was more appropriate than houses to bring costs down.

Source: Stuff (http://www.stuff.co.nz/business/73106230/Auckland-Council-wants-to-halve-media)

Auckland’s Quest for Affordable Housing

Posted on: September 28th, 2015 by gherkinmedia No Comments

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Homes at the Waimahia development in Weymouth in Auckland.

Photo: RNZ / Kim Baker Wilson

Sebastiaan and Heather Boer are a working professional couple in Auckland and consider themselves lucky to have just moved into a low-cost first home.

They signed up last year for a new four bedroom house being built by the Housing Foundation in the Waimahia Inlet affordable homes development in Weymouth, south Auckland.

The couple paid $460,000 for one of the free-market homes being built by the not-for-profit organisation, but say with rising prices in the intervening year, they’d struggle to buy-in now.

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Heather and Sebastiaan Boer have recently bought a house in the Waimahia Inlet development.

Photo: RNZ / Todd Niall

“I think it’s really sad that a normal couple both earning money – that a lot of people can’t do it, and may have to leave Auckland,” said Ms Boer.

Unaffordable housing has become Auckland’s biggest problem, and the biggest political challenge it faces.

Listen to Insight: Auckland’s Quest for Affordable Housing

 

Ogg   |   MP3  ( 28′ :11″ )

 

Auckland is estimated to be up to 30,000 homes short, and despite consents rising annually to reach more than 8,000 homes, the city needs 13,000 a year for the next couple of decades.

The shortage is most acute at the affordable end of the market. Properties costing three times the median household income are considered affordable. In Auckland the median sales price is 10 times the median household income of $78,000.

The most influential single player in Auckland is Housing New Zealand, which owns 38,000 homes, many of which sit on large sections ripe for redevelopment.

It is working over the next few years on largely smaller redevelopment sites, mostly declared as Special Housing Areas under the city’s Housing Accord, which fast tracks higher density planning conditions and consent processes.

It also has a large greenfield development at McLennan Park, where social rental housing and homes for the free market are to be built in stages.
Minister Responsible for Housing NZ, Bill English

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Minister Responsible for Housing NZ, Bill English

Photo: RNZ / Diego Opatowski

The Minister responsible for Housing New Zealand, Bill English, said the agency had picked up its build rate from a low of only several hundred homes a year.

“It’s not where we or they would want them to be but they have ramped up considerably,” Mr English told Radio New Zealand’s Insight.

“It is possible to go faster. Those are the type of discussions we are having with Housing New Zealand now. There have been changes on the board there, as that settles down, the importance of getting this moving fast is a top priority for the government. But we can’t forget the tenants.”

The co-leader of the Green Party Metiria Turei, who is also its housing spokesperson, said the agency was constrained by government policy, and by having to pay a $118 million dividend back to the Crown.
Metiria Turei.

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Metiria Turei.

Photo: RNZ / Kim Baker Wilson

“If Housing New Zealand was freer to use the money that it had, it could build new places, and fix up the old ones, it would have a better relationship with community organisations and with the tenants, and be increasing the housing stock and improving its quality.”

Housing New Zealand said it is being slowed by factors including uncertainty over how densely the land can be filled with housing. This will emerge next year when the city’s new rulebook, the Unitary Plan, is finalised.

Constraints around inadequate sewerage and storm water in some areas are also holding up the process.

The government’s first policy to try to tackle Auckland’s housing shortage – estimated at 20,000 to 30,000 homes – is its two-year-old Housing Accord with the council.

Building and Housing Minister Nick Smith has argued that a boost in land for housing, and fast track planning processes will accelerate home building and ease rising prices.

Two years in, the Accord is largely on target to have helped consent 22,000 homes or residential sections, but the median price of houses sold in the past year has climbed by 20 percent.

Changes are in the pipeline, but it is still unclear how much of an impact they will make on forecasts that 40 percent of the 400,000 extra households expected to be set up in Auckland by 2040, will not be able to afford to buy a home.

The Unitary Plan is expected to allow higher density housing across much of the city.
David Gibbs is the chair of the Institute of Architects Urban Issues Group

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David Gibbs is the chair of the Institute of Architects Urban Issues Group

Photo: Supplied

David Gibbs is the chair of New Zealand Institute of Architects Urban Issues Group, and an advocate for good design and higher density as a way to build more affordable homes.

“A typical terrace house requires a site of 180 square metres, whereas a smaller standalone home needs 280. There’ll be typically a $100,000 difference in the land price in favour of the terrace house,” he said.

Higher density rules have allowed the charitable Community of Refuge Trust to turn two adjoining state house properties in Mount Wellington into 11 one- and two-bedroom social rental units.

An important new player is the Tamaki Collective, representing 13 iwi across Auckland. The collective is behind the Waimahia Inlet development, and under a new protocol with the government has the first option on being the developer for further Crown housing land.

The government wants 20 percent of homes to be social rental dwellings, and a further 20 percent to be “affordable” for open sale.

None of the four sites unveiled so far are as large as Waimahia, and the collective said important detail was not yet known.
Paul Majurey is the chairperson of the Tamaki Collective

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Paul Majurey is the chairperson of the Tamaki Collective

Photo: Supplied

“We have a general sense that the acquisition of the properties will be at commercial rates,” said the collective’s chair, Paul Majurey.

“We also have a sense through our agreement as to the social and affordable components of 20 plus 20 percent up to 40 percent. As to the terms of acquisition at a detail level, the milestone of payments, the ability of the Crown to recognise the social and affordable component in the price, those are the things we are waiting to see what the Crown delivers.”

The government had in May said it wanted development on the first site in Massey, west Auckland, to begin in October, but the process had been temporarily delayed through court action by Ngati Whatua, which has now been withdrawn.

Source: Radio New Zealand National (http://www.radionz.co.nz/national/programmes/insight/audio/201771927/insight-for-27-september-2015-auckland%27s-quest-for-affordable-housing)

Penny Hulse: Addressing Auckland’s housing crisis

Posted on: September 25th, 2015 by gherkinmedia No Comments

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The report by Wellington researcher Ian Mitchell which found 78 per cent of Auckland’s 109,000 households in paid work and private rentals can’t afford to buy a relatively cheap house made for depressing reading.

Auckland Council is painfully aware of the housing crisis and we are working hard to address some of the barriers to the provision of affordable housing.

We are very concerned about the impacts of rapidly rising prices which include a generation of young people who may never be able to buy a house, people being forced to live in overcrowded and sub-standard accommodation and the risk of prices eventually collapsing if prices overshoot what is justified by underlying demand.

Demand for housing has been fuelled by rapid population growth due to natural increase and record levels of immigration. Auckland has grown by around 100,000 people since amalgamation in 2010! That’s the population of Lower Hutt.

We have made significant progress in freeing up land for housing, as well as ensuring we have sufficient land for growth in business activity. The Proposed Auckland Unitary Plan has zoned 11,000 hectares of land “future urban”. This land will be urbanised progressively over the next 30 years and will allow for more than 110,000 dwellings outside current urban areas.

The Unitary Plan will also allow for greater intensification in existing neighbourhoods, especially in places with good public transport. By encouraging really good urban design we aim to create neighbourhoods that are great places to live with a choice of housing from standalone, to apartments and town houses.

The Auckland Housing Accord between central government and Auckland Council and its Special Housing Area legislation were designed to get more houses built without having to wait for the Unitary Plan to come into effect. The 97 Special Housing Areas have made a significant contribution to the rapid release of land for housing.

We are not just focused on the supply of land. Our new urban development agency Panuku Development Auckland, established at the beginning of this month, will work with developers to get development on council owned land. Panuku Development Auckland is in a unique position to assemble large parcels of land to get quality development at scale.

We also need to ensure the right infrastructure is in place to support projected growth. Our 10 year Long Term Plan and 30 year infrastructure strategy both have a strong emphasis on provision of parks, community facilities, sports grounds and passenger transport to service growth.

The cost of growth is still a challenge for Council however we are committed to finding new ways to fund and finance infrastructure including partnerships with the private sector and government.

Auckland Council has a strong partnership with government and we are collaborating in many ways. But we do not believe Auckland can simply build its way out of the housing problem. We also need to look at making long-term renting a viable option, at interventions specifically targeted to the provision of affordable and social housing such as innovative funding tools.

That’s what we are working on and that’s what we will continue to work on.

Penny Hulse is the Deputy Mayor of Auckland City.

Source: NZHerald.co.nz (http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=11518360)

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

Posted on: September 17th, 2015 by gherkinmedia No Comments

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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.

It’s full steam ahead at Hobsonville Point, a prime piece of Auckland real estate that was used from the late 1920s by the Royal New Zealand Air Force before being transferred by the Crown to Housing New Zealand Corporation.

Posted on: September 17th, 2015 by gherkinmedia No Comments

The Hobsonville Point development is taking place pursuant to a Special Housing Area and is being led by the Hobsonville Land Company, a wholly-owned subsidiary of Housing New Zealand Corporation.

The Hobsonville Point development will be completed in stages and so accordingly, the land has been divided into precincts (see Figure 1). When complete, the entire Hobsonville Point development will be home to approximately 10,000 people in more than 3000 homes of which 20% will be sold for no more than $550,000 (referred to as the ‘Axis Series Homes’) in keeping with the affordable housing objectives for the development. There is no minimum size for an Axis Home. Purchasers of the Axis Series Homes buyers must be New Zealand permanent residents or citizens, have a household income of no higher than $120,000 per annum and live in the house for a minimum of two years. In addition, half of the buyers must be first time home buyers.

The ‘Sunderland Precinct A’ forms part of the Hobsonville development. The Precinct’s developers, Willis Bond, bought the land from the Hobsonville Land Company in 2013. Willis Bond has raised $228 million equity for two development funds that provide it with a large, secure capital base for its development projects. Investors in the funds include the New Zealand Superannuation Fund, the Government Superannuation Authority and the Accident Compensation Commission.

The 211 new homes in the Sunderland Precinct will be a mixture of typologies, namely 40 free standing homes, six apartments and 146 terraced houses of which 30 will be the affordable Axis Series Homes (see Figure 2). In addition, the Precinct will have 17 refurbished heritage houses that were originally built in the 1930s to house the families of Royal New Zealand Air Force officers.

Much careful planning and design has gone into providing community amenities. A new primary school and secondary school have recently been built as part of the larger Hobsonville development. Pocket parks will also be created with shared garden sheds to store communal lawnmowers and garden tools that will be administered by a residents’ group to encourage community connection.

In terms of timing for the Sunderland Precinct, the first of the refurbished heritage homes arrived on the market in June 2015 (see Figure 3) and the other new homes will follow shortly. Expressions of interests have been received from a number of parties who will have the first opportunity to buy the new homes as they become available. Sales are progressing well and as at September 2015 there were 77 sales and 10 conditional contracts and the first release of homes will complete by the end of 2015.

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Masterplan of the Hobsonville Point development
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The first of the homes constructed in the Sunderland Precinct
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The refurbished heritage home at 2 Sunderland Avenue, Hobsonville

The creation of a precinct within a Special Housing Area and the construction of 211 mixed-typology homes as part of the larger Hobsonville Point development.

Tauranga Community Housing Trust: Redeveloping an existing site to deliver new affordable housing.

Posted on: September 17th, 2015 by gherkinmedia No Comments

Tauranga is one of the least affordable cities in New Zealand with high housing costs relative to income and a significant and growing under-supply of one and two bedroom dwellings. Among other issues, there is a poor supply of accessible housing and lack of consumer choice, particularly separate housing with support provision.

Tauranga Community Housing Trust (“the Trust”) provides housing and housing related services in the Tauranga community, which included rental units on a site owned by Tauranga City Council (Council). The Trust saw the opportunity to redevelop the site to provide affordable rental housing, while continuing to manage the rental units as they did previously.

Council agreed to sell the site to the Trust in 2012, with the Trust continuing to manage the rental units as they did previously. The sale of the property was consulted upon in Tauranga City Council’s Ten Year Plan 2012-2022 process.

The site originally had eight, one bedroom units in four blocks. These units were old and in need of refurbishment and were poorly positioned within the site. Further, they did not meet long term community requirements or expectations.

The vast majority of the Trust’s tenants and clients have complex health, disability, financial and/or social needs in addition to a serious housing need. Approximately 80% require support including home, community and health support, personal care and specialist equipment and the large majority of clients do not own a private vehicle.

The Trust’s proposed redevelopment included relocating the existing units to an alternative site within their community housing portfolio, and redeveloping and intensifying the site with new units to achieve a sustainable, well designed medium density development.

The new development provided an additional six units on the site in three separate two storey blocks. These 14 units – six, 75m2 two bedroom and eight one bedroom units (60m2) – would each have either a balcony (for level two units) or mobility scooter lockable store areas and decks for level one units. Each unit was designed to meet relevant access and mobility standards with individual walkway/mobility scooter access from the street frontage and from a shared internalised car parking area.

The proposed development did not comply with the requirements for the site, which is framed with residential properties and located close to the Tauranga Hospital (a scheduled site). The development is a discretionary activity under the Operative Tauranga District Plan and a limited discretionary activity under the Proposed Tauranga City Plan. As the development did not meet two of the permitted activity rules relating to Density/Intensity and Scale and On-Site Car Parking requirements, resource consent was required.

During the consent process, consideration was given to the landscaping including the setback of buildings, the retention of the established trees and shrubs and landscape planting, which mitigated the visual impact of the development. In light of this, the intensity of the development was considered compatible and consistent with the surrounding residential and hospital environments.

As the majority of the Trust’s tenants and clients do not own cars, the requirement for two car parking spaces per unit was accepted as not being an appropriate requirement, in this instance.

And, as the development provided for disabled and people on low income as well as an affordable housing option to the community it was considered in accordance with the purpose of resource management, particularly in regards to enabling people and communities to provide for their social and economic well-being.

Approval was granted for the development, and construction commenced in February 2014.

As of August 2015, the development is completed, with 20 tenants now residing on the site.

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The units that occupied the site prior to development.
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The units now occupying the site (following development).

This project demonstrates how successful such a venture can be. Eight small, cold and aging units have been removed. The 14 new apartments have turned eight bedrooms into 20 on the same site, delivering a 250% increase in accommodation. In addition, the benefits of modern design with double glazing, full insulation and larger living areas have resulted in better financial and health outcomes for residents. The project improved the wellbeing of the tenants and reduced the strain on their extended family and welfare systems.

The resulting well-managed village is sustainable, affordable for tenants, and has very high occupancy levels, (99%). Most importantly, the tenants and their families report a high level of satisfaction, particularly in terms of security and stability.

Key facts:

  • High housing costs and a growing under-supply
  • Opportunity to develop additional affordable housing on existing residential site
  • Corner site at Clarke Street and Matthew Street in Tauranga
  • Resource development consent required for proposed development
  • Site now developed and providing affordable housing for residents in need in Tauranga

The Mantanikolo Project is the realisation of a long-held vision to build healthy new affordable homes for the Pasifika community in Mangere, South Auckland.

Posted on: September 17th, 2015 by gherkinmedia No Comments

It has taken the best part of the intervening 20 years to get the first 22 houses built as part of stage one of the Mantanikolo Project. Recent assistance has come in to form of a $4.3 million grant from the Government’s Social Housing Fund with the balance of the $8.6 million project cost coming from the land value and a bank loan. Rents for the homes are set at 80 per cent of market value or $310 for a three-bedroom house.

The name of the development, “Mantanikolo”, was bestowed by former Tongan Prime Minister Prince Fatafehi Tu’ipelehake. It means ‘gateway’ and symbolises “the gate for families to enter homes for their children to have space”. The 22 new homes were officially opened on 13 February 2014 by the late Tongan Prince’s daughter, Princess Mele Siu’-i-Likutapu Kalanivalu Fotofili, who also unveiled a sign for the new street ‘Fatafehi Place’.

Lotofale’ia worked closely with Airedale Property Trust to realise the 22 houses in stage 1 of the Mantanikolo Project. Airedale Property Trust is a charitable organisation that operates under the auspices of the Methodist Church of New Zealand. It provides property development, project management, and property and tenancy management expertise for Methodist Church properties in the wider Auckland area. The Trust turns the profits generated through its property and consultancy work into social outcomes by partly funding the work of its sister trust, the Lifewise Trust, an Auckland based social development agency that is also a registered Community Housing Provider. Together, the sister trusts work together on multi-disciplinary projects such as social housing developments, early childhood education centres and the provision of backroom support services to a broad range of other organisations and projects.

The new homes in Mangere are now fully occupied and there is a strong sense of a close neighbourhood developing. The realisation of the Mantanikolo Project means that the parish families no longer need to reside in cramped, damp and poorly-insulated houses that unfortunately are a feature in the Mangere community.

Stage two of the Mantanikolo Project will be construction of 14 pensioner units that are also in short supply in Mangere. It is hoped that these units will be completed in the not too distant future.

Twenty-two houses, which are a mixture of three, four and five-bedroomed houses, have been built by Lotofale’ia, part of the Methodist Church of New Zealand, on a vacant block that was bought from Housing New Zealand Corporation for $210,000 in 1994.

State housing, characterised by the old ‘pavlova paradise’ three bed home, has been a part of the New Zealand suburban landscape since the middle of the last century.

Posted on: September 17th, 2015 by gherkinmedia No Comments

However, the country has changed dramatically since the bulk of these homes were built, meaning that in both property size and land use these homes are now poorly matched to contemporary demand.

Nowhere does this ring truer than in Auckland, where state housing accounts for over 6% of existing residential land supply. Housing New Zealand is therefore redefining its portfolio across the region, making better use of its existing 1400 hectare footprint to better serve its own customers and contribute to the Auckland Plan vision of a compact, thriving city.

The Corporation currently has over 1000 new homes across Auckland either completed or under construction, with a further 3000 potential new homes currently being evaluated. The vast majority of these new homes are being delivered through the intensification of existing brownfield sites – one-size fits all standalone homes being replaced by a mix of typologies that not only meet tenant demand but contribute to the development of healthy, mixed communities.

Recognising the profound influence redevelopment of this scale will have on the city of the future, Housing New Zealand has published its Simple Guide to Urban Design and Development. At the heart of the document, and its associated toolkit for architects, is a commitment to create urban design outcomes not just for social housing tenants, but for the wider communities that they form part of.

One such brownfield redevelopment underway is in Daventry Street, Waterview. The site is in a Special Housing Area (SHA) comprising three adjoining houses arranged as one or two-bedroom duplexes. While combining the six individual sections has created a developable area of almost 3500 sqm, its corner location has given rise to an unusual diamond shape with very little street frontage (see Figure 1). According to the project architects, Monk Mackenzie, “this presented challenges in respect of connectivity and isolation, as well as opportunities in respect of community building, socialisation and place-making.”

The architectural response has been to open the centre of the site to create spatial separation and a central focus to this micro-community. Importantly this will also allow the homes to absorb the north and north-western sun in the afternoons.

The seventeen new homes will be a mixture of housing typologies to better fit with contemporary demand and will consist of ten 2-bedroom units, five 3-bedroom units and two 4-bedroom units (see Figure 2).

An essential part of the design brief was to ensure good living outcomes for residents including security, privacy and quiet enjoyment, as well as observing good proportions of height in relation to boundary with the neighbouring properties. The new homes have also been designed to complement the existing look of the surrounding community. In this way, the Daventry Street redevelopment, as with the Corporation’s other redevelopment projects will be ‘tenure blind’ in so far as people will not be able to distinguish its houses from privately-owned housing.

Housing New Zealand Corporation’s intention through its redevelopment programme is to contribute toa thriving city by creating enduring mixed-use communities. Good progress is being made towards this objective, which has also seen the Corporation working with Auckland Council’s Housing Project Office to streamline its consenting processes pursuant to the provisions of Auckland’s Housing Accord. One of the biggest constraints however has been that existing stormwater systems frequently do not have the capacity to cope with the added volumes from intensified sites. However, with good design and a focus on collaborative team work, the Corporation’s redevelopment projects are proceeding at pace to deliver better social housing outcomes across Auckland.

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Figure 1: The project site at Daventry Street with the three existing houses containing six units
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Figure 2: An artist’s impression of the new Daventry Street development

The redevelopment of three Housing New Zealand duplex properties into 17 sustainable, modern homes of varying size to meet social housing demand.

Flexibility the key to funding ground-breaking integrated housing development

Posted on: September 17th, 2015 by gherkinmedia No Comments

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In 2013, Creating Communities, a consortium of developers and builders working alongside Housing New Zealand began a project to take Housing New Zealand’s outdated properties in Glen Innes and transform them into a mix of private, affordable and social housing.

The 12ha redevelopment covers eight stages and, when complete, will convert what was 156 Housing New Zealand properties into more than 270 new homes. The integrated community will include 79 Housing New Zealand houses and 39 affordable houses with the balance being private homes. Floorplans have been designed to meet the accommodation needs of the community, including a range of 2, 3 and 4-bedroom terraced and stand-alone homes.

The project, the largest urban regeneration project ever undertaken in New Zealand, is unique and delivered some challenges due to the fragmented brownfields locations, a tight construction market, and consenting and development intricacies.

This scale and approach of the project brought some unusual funding challenges, requiring an innovative approach to structuring a funding facility that suited the timescale and complexities of the project.

BNZ property partners worked with Housing New Zealand and developers to determine the needs, time frames and sales expectations. The bank responded with a three-year funding facility with the inbuilt flexibility allowing Creating Communities the ability to tailor the amount and design of housing built in order to meet consenting constraints and future market demand.

BNZ managing partner Auckland City, Lyndon Settle says the Creating Communities project is meeting a wide range of the housing issues that Auckland faces.

“This ambitious project undertakes intensification of high value land only 10 kilometres from Auckland CBD and has been designed to meet the needs of all demographics in one integrated community,” he says.

“We spent a lot of time working with developers to understand the needs of the project. We could see that this was a transformational project at the early stages of growth so developed a bespoke funding solution that could move with both the current and future needs of the development.”

Due for completion in 2017, it is expected that Creating Communities Glen Innes redevelopment will set a benchmark for mixed use communities in New Zealand’s largest city.

The 12ha redevelopment covers eight stages and, when complete, will convert what was 156 Housing New Zealand properties into more than 270 new homes.

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