Scathing Kāinga Ora report highlights huge and ever-growing debt

Te Puea Marae chairman Hurimoana Dennis noticed significant changes around 2017 when Kāinga Ora outlawed evictions, except for the use of meth and assault. Photo / Nick Reed

A social housing advocate is worried that Kainga Ora’s goal of meeting the country’s housing needs will run second to reducing debt.

This follows a review of the state housing agency by former prime minister Sir Bill English. His report revealed the social housing system was not sustainable and that Kainga Ora has enormous debts running into billions of dollars - and rising.

According to the report, Kāinga Ora’s level of debt has grown from $2.7 billion in 2018 to $12.3b in June 2023 and will increase to $23b by 2028.

In response, Cabinet yesterday decided to:

• Coordinate contractual arrangements across Kāinga Ora and Community Housing Providers (CHPs);
• “Refresh” the Kainga Ora board;
• Simplify direction to the agency; and
• Housing Minister Chris Bishop to set an expectation that the Kāinga Ora board will develop a credible and detailed plan to improve financial performance and eliminate losses.

Prime Minister Christopher Luxon and Housing Minister Chris Bishop arriving before announcing a multi-year shake-up of public housing agency Kāinga Ora.

The board has been without a permanent chair since former Labour minister Vui Mark Gosche resigned in February. Bishop signalled the current board would be significantly overhauled but didn’t specify whether the entire board would be sacked.

The former Government’s affordable housing scheme, KiwiBuild, would officially be scrapped, Bishop confirmed. An official date for this had not yet been set.

Te Puea Marae chair Hurimoana Dennis says he understands that the current model is unsustainable.

“I acknowledge that there is big money and Kāinga Ora is currently running at a deficit, it’s just not sustainable. So what they are doing in pulling that stuff back and getting more accountability and structure around that and stuff, pai noa tēna.

“Kāinga Ora has three name changes, Housing Corporation being one, so what? Are we going to get another name change? While the name change might not mean much to people, it also means a change in the āhua and service delivery direction.”