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Opposition housing spokesperson Judith Collins says a Scott Point couple's struggle to secure an affordable house highlights deep flaws in the Special Housing Area accord between Auckland Council and the Government.
Jonathan and Shelley Jansen featured in the Herald today, after buying a Hobsonville affordable home of $600,000-plus at Scott Point but were presented with a separate invoice of $44,000 for the driveway, fencing and some landscaping as well as being asked to pay for changed flooring.
"This makes a mockery of affordable homes," Collins said this morning.
However, the lawyer for housing developer Imperial Homes has defended his client, said all arrangements had been transparent and it was only the dwelling which had been originally contracted and other aspects cost more.
Collins said: "It looks extremely dodgy, being asked to pay extra. The landscaping was around $14,000 for a pocket-sized section. I have been approached by two couples at Hobsonville Point, both buying into Special Housing Areas."
The area has a portion of affordable homes to allow first-time buyers to secure places but Collins said it was wrong that at least two couples she knew of were asked to pay sums on top of the "affordable" purchase price.
"That is just outside the scope of the act," she said, referring to the Housing Accords and Special Housing Areas Act 2013, passed by a National-led Government.
That was meant to ensure first-home buyers got places at around 75 per cent of the median Auckland house price based on the Real Estate Institute data for the area yet. Scott Point is not part of Hobsonville Point but is next door.
Jonathan Jansen said this morning the couple were asked to pay $684,000 for the home they originally expected to buy for just $636,000: "That blew the cap," he claimed of the affordability measure or limit.
"We were asked to pay $684,000 but negotiated down to $652,800. It's our position that It's not an argument of whether or not the landscaping should have been included or the price of the landscaping. It was clearly included in the sales contract and we were charged for it twice," Jansen said.
Collins wrote to Housing and Urban Development Minister Phil Twyford complaining about the situation but his spokesman Tom James said Collins' letter was passed to Building and Construction Minister Jenny Salesa, who in turn has said the matter should be referred to Auckland Council.
one roof
Collins criticised that too: "Surely it's Phil's [Twyford] territory? He's the minister in charge and I would have thought this was a prime area. Also, he's responsible for SHAs. He should not be passing it to Jenny."
Collins said the Jansens and the other couple who approached her both had places built by Imperial Homes.
"It's extraordinarily odd," says Collins. "In many years as a lawyer I did a lot of acting for group builders and I've never seen anything like it. It's the oddest contract I've ever seen.
"If Phil has done nothing, it's very concerning. He should have asked MBIE or the housing people to come back to him. I wonder how prevalent this is and why the council didn't do anything about it until [media reports meant] they had to."
Collins said the couple "would have been better off buying a pre-loved house but of course they couldn't afford that."
Tom James from Twyford's office said this morning: "Minister Twyford has the delegation on the policy of SHAs and Minister Salesa has the delegation for their operation."
Imperial Homes' sole director and sole shareholder is Li Zhu of Flat Bush, according to the Companies Office.
Meanwhile, the couple's struggle is drawing response on the neighbouring Hobsonville Point Community's social media page, divided for and against their situation.
While some express sympathy for the Jansens, others criticise them.
"Forty years ago ours, and thousands of others, new first home was Neil, Universal, Dempsey Morton, home on bare ground. No driveway, garage, lawn, footpaths, letterbox, carpet, curtains, heating, dishwasher. Bare unfinished particle board floors. Dug out driveway by hand and concrete as we could afford. Wait six weeks for telephone line. Gosh how times have changed," said one commenter.
Another said: "Totally feel for this couple. Hindsight is always a wonderful thing. Scott Point ... there are only a few houses there that haven't been fitted out with a container load of imported junk."
Andrew Fletcher, Imperial's lawyer of Evans Bailey in Hamilton, said: "The purchasers willingly entered into agreements for sale and purchase and independent contracts relating to the provision of landscaping and other matters after having the benefit of full independent legal advice. In many cases, a very robust process was followed by the purchasers' solicitors before the purchasers committed themselves. There can be no question of bullying."
Dwelling meant a building or part of a building so the original price was only for the home, Fletcher said.
"It does not include other items, such as chattels or landscape development. The purpose of the legislation was to control the cost of housing. Auckland Council has made certain resource consent decisions in relation to landscaping of properties and owners must comply with those decisions.
"The relevant price of an affordable dwelling is not the price based on the outcome of the resource consent requirements which have been independently imposed by the council. It is the price of the dwelling. In every case, the agreements for sale and purchase entered into have clearly stated the price of the dwelling," the lawyer's statement said.
"The agreements also clearly stated that there would be an additional charge for landscaping and other items supplied in addition to the cost of the dwelling. This process has been completely transparent and has been advised to the purchaser prior to entry into the agreement," he said.
At least two months before sales settle, agreements go to the council.
"There has been full transparency with council and all relevant details have been supplied to council a long time before any of these transactions were settled," Fletcher said.
