FAQs
The entity can be established and/or operated in partnership with iwi and other partners.
The entity is able to qualify for government funding and support.
The entity is able to operate with a degree of independence and has access to necessary specialist skills and experience.
The entity can provide affordable rentals and affordable housing ownership options to the local community.
The entity is able to operate with financial sustainability over the long term.
Any returns are to be reinvested into affordable housing.
Social and affordable housing provision
Property management and development
Legal background.
Accountancy and financial management.
Community sector work and related networks.
Experience in governance roles.
A Trust Deed that clearly sets out the purpose and objectives of the trust to ensure it is focused on the provision of social and affordable housing.
A Memorandum of Understanding between the Council and the trust to enable a shared understanding of important issues, key focus areas, and the respective roles of each party. This would include key relationships and contact points.
What is an Independent Community Land Trust?
An independent community land trust (CLT) is an independent, not-for-profit organisation governed by a board of trustees made up of iwi, community members and professional representatives with the purpose of providing permanently affordable housing opportunities for families and communities.
What is a Community Housing Provider?
A community housing provider (CHP) is a not-for-profit organisation that meets housing need through a range of affordable rental and home ownership options and provides relevant wraparound services. An organisation must undergo a registration process to become a CHP which can take up to 24 months to complete.
What is the Income-Related Rent Subsidy?
The Income-Related Rent Subsidy (IRRS) is a payment made by the Ministry of Housing and Urban Development (HUD) to Kāinga Ora – Homes and Communities and registered Community Housing Providers (CHPs) to cover the difference between rent paid by the tenants and the market rent for the property. The amount of rent public housing tenants pay is generally set at 25 percent of their income. Council’s tenants do not currently qualify for the IRRS subsidy.
What do you mean by an ‘affordable housing entity'’?
Council is proposing to establish an entity focused on supporting the delivery of affordable housing options for Kāpiti. Council undertook research, including interviews with other Councils and organisations, to help determine what type of entity would work best for Kāpiti. The entity would partner with iwi and other organisations and ensure any returns are reinvested into affordable housing. This consultation will help determine the community’s views on the preferred option.
What does this consultation mean for the Council’s older persons housing?
Council owns and manages a portfolio of 118 older persons’ housing units. There is an action within our Housing Strategy to ‘review existing Council older person housing land and other Council land to see if additional social housing can be built’.
Council’s older person’s housing is not included in this consultation. A separate review will be undertaken in line with the above action, which will include stakeholder engagement and public consultation.
What are the objectives of establishing an affordable housing entity?
With a range of possible entities to assist with the delivery of affordable housing, it was important that Council was clear about its key objectives. The following objectives were developed for the entity and confirmed by Council:
The preferred approach says that the trust would partner with iwi and other organisations, what does that mean?
To ensure a range of affordable and social housing scenarios can be supported, it is proposed that the trust will be structured so that it delivers outcomes directly such as holding/owning land for the purpose of affordable and social housing, but also partners with iwi and other organisations to improve housing outcomes.
The CLT’s board of trustees will look for opportunities to partner and support iwi and other organisations to deliver affordable housing outcomes. The trust deed and memorandum of understanding will require partnership to occur, but the details will be up to the board to work through. This approach also helps to avoid duplication of activity and effort between parties.
Who would be on the board of trustees for the trust?
A separate appointment process would be established in alignment with the Trust Deed, this would include the establishment of an appointment panel to oversee and manage the appointment process and ensure trustees have the necessary skills and experience. Trustees would need skills and experience in the following areas:
If a trust is established independent from the council, how would the council ensure that the trust delivers what it was established for?
We have reviewed what other councils in New Zealand have put in place to ensure the trust delivers affordable housing outcomes. This includes:
Why is council involved in housing provision?
Council is responsible for the wellbeing of all people in our district. This was made clear in 2019 when the Government reintroduced the four wellbeing’s into the Local Government Act 2002, our governing legislation.
Housing stress affects a range of wellbeing outcomes and is often the key issue which impacts other outcomes such as community connection and job security. Our Long-term Plan 2021-41 recognises that people need access to suitable quality housing so that they can live and thrive.
In the past, Council’s role in housing has focussed on the provision of older persons housing, and provision of infrastructure, facilities and services and undertaking regulatory functions such as with the District Plan and issuing consents.
As agreed with the community through consultation on the Long-term Plan 2021-41 (LTP). Council is now stepping up to take a bigger role in housing,
Housing is a complex issue and not solely the responsibility of one organisation or sector. Council does not hold all the solutions to our district’s housing challenges, but we want to play our part and help others do the same.
Isn’t social/affordable housing for Kāinga Ora/Central Government to provide?
Council’s role in housing is multidimensional and there has been clear direction that the community wants Council to take a stronger role in responding to the housing crisis.
Council already has a small number of older persons’ housing units which it provides the community.
The Kāpiti Coast District Council Housing Strategy 2022 outlines that there are multiple roles Council will hold in responding to housing:
- regulator/service provider
- facilitator/connector
- enabler/funder
- housing provider
Housing Affordability has been identified as one of the seven focus areas in Council’s Housing Strategy, which includes the following action: ‘Explore how alternative tenure and ownership models could be incentivised or delivered in partnership with others (e.g., build to rent, community land trust or leaseholder arrangements)’ (Housing Strategy, page 28).
What else is Council doing to improve housing outcomes?
Council has approved the Kāpiti Coast District Council Housing Strategy 2022. It outlines key focus areas and related actions that Council will undertake to help improve housing outcomes in Kāpiti. Further details of these actions can be found on page 28 and 29 of the Housing Strategy document.
The Housing Strategy also outlines key Councils workstreams that are influencing the housing actions and outcomes on page 30 of the Housing Strategy document.
Could the housing entity just sell the Council land for profit?
No, the Trust Deed would make it clear that the purpose of the Trust is to hold any land for the benefit of the community via the provision of social housing/affordable housing outcomes.
Other similar entities such as the Queenstown Lakes Community Lands Trust, have stipulations that Council would have a first right to purchase land back, on the same terms as the original transfer, if the affordable housing entity no longer meets its social housing/affordable housing objectives. Council would look to include similar provisions as part of any transfer of land to the trust.
Would the land Council purchased at Rangiuru Road, Ōtaki be transferred to this entity?
Council purchased land at Rangiuru Road, Ōtaki for the purpose of affordable housing. The Kāpiti Coast Housing Needs Assessment 2022 outlines there is a current need for housing in Kāpiti. Given the potential timeframe to establish the affordable housing entity (up to 18 months) the investigation work underway at Rangiuru Road will continue. The land may be transferred to the affordable housing entity later.
Why isn’t a Council Controlled Organisation (CCO) the preferred approach?
A major limitation of the CCO option is that Council and Council related entities are unable to access central government funding such as the Income-Related Rent Subsidy. Access to central government funding was one of the key objectives of establishing an affordable housing entity in order to ensure long term financial sustainability and support the provision of social and affordable housing.
Wasn’t it decided that Council would look to establish a CCO in the Long-term Plan 2021-41?
Yes, through the consultation on the Long-term Plan 2021–41, the community supported the establishment of a CCO, with further consultation to occur when Council identifies an activity/ purpose that should be managed by a CCO.
While staff identified that the establishment of a CCO does not meet the objectives of an affordable housing entity for the Kāpiti Coast District, Council will continue to consider the establishment of a CCO for other purposes.