Waiting game for He Korowai

Riki Houghton.

Kaitaia's He Korowai Trust is awaiting the outcome of an Internal Affairs process aimed at determining whether it can retain its charitable status, and continue the work it is doing to provide low-income Far North residents with homes of their own.

CEO Riki Houghton said last week that the trust had jumped through all the hoops presented by various government departments, and was clearly not mollified by assurances from Internal Affairs that it was working hard to achieve the best outcome.

The problem is that the trust's housing development in Kohuhu Street, Kaitaia, which will see families acquire their own homes within a nine-house complex, albeit under strict rules imposed by the trust, could be interpreted as conferring a private benefit, which current law would not allow the trust to retain its charitable status.

Internal Affairs deputy chief executive Maria Robertson told the Northland Age last week that the department was simply going through the process of examining charities where home ownership resulted. Charitable status demanded that there be no private benefit, but that did not mean that the organisations involved, including He Korowai, were not doing great work.

"It's a very deliberate, careful process, originally involving around 3000 housing providers," she said.

"That's down to about 50 now, where there may be a personal benefit aspect that needs to be looked at. Thirty-nine of them have been identified as charitable, and we are gradually working through the rest. I hope they can continue as they are, and expect that most will carry on.

"We may need to look at how some of these organisations are structured. I would expect that to apply to less than 10, but I don't know where He Korowai sits yet."

Ms Robertson said there was no intention to "pull the rug" out from under anyone.

"The aim is to support charities, not do them a disservice," she added. "And we are working with them. Whatever happens, nothing will come as a surprise to He Korowai."

Meanwhile the Maori Party is supporting calls for a law change, if one is needed, to ensure that He Korowai Trust retains its charitable tax status, co-leader Marama Fox saying it was in a ridiculous situation that needed to be fixed quickly.

"If the current law penalises social housing providers for assisting low-income whanau to own their own home, then the law needs to change. Home ownership must be one of the aims of social housing," she said.

Co-leader Te Ururoa Flavell said He Korowai Trust demonstrated a Whanau Ora approach to housing families, and should be fully supported.

"We've got a private Maori trust that has committed itself to providing wrap-around services to whanau who need it. It is clearly a not-for-profit organisation," he said.

Former Maori Party co-leader Tariana Turia launched the Maori Housing Strategy at He Korowai Trust's housing site in Kohuhu Street last year, Mr Flavell describing the project as an excellent exemplar for other Maori housing providers. It was vital, therefore, that its tax status be clarified.