Pensioners, disabled people and low-income families will benefit from a surprise Government decision to fund 508 social housing units in Auckland.
Social Housing Minister Paula Bennett says five community agencies will get income-related rental subsidies to provide the 508 new homes, up from 300 planned when a tender was unveiled in May.
The Government will also chip in $10 million in upfront non-repayable grants, which the Social Development Ministry said could be used "as a contribution to development costs for new builds, or as finders' fees for new leasehold properties".
"This is not an advance to be paid back," the ministry said.
IHC subsidiary Accessible Properties gets subsidies for 58 new homes for 25 years, and for 300 homes to be leased from private owners for five to 10 years, including the bulk of the $10 million upfront grants plus extra for managing the leasehold tenancies.