Housing: Whanganui councillors lament lack of Govt funding for new homes

Whanganui councillors say the district’s housing crisis is not easing and the Government is “abdicating” its responsibility to build new homes.

A report from Whanganui District Council housing adviser Jeanette Te Ua-Hausman said Kāinga Ora, the Government’s housing agency, previously forecast the delivery of 192 homes in Whanganui between 2024 and 2027.

That had stopped, with surplus land potentially divested to reduce debt or fund renewals of older housing stock.

Last year, the Government announced a “reset” of Kāinga Ora developments following a report that found operating deficits could increase to $700 million by 2027.

Te Ua-Hausman told the council’s operations and performance committee no new Kāinga Ora developments were planned over the next two years.

While 10 houses at 101-103 Puriri St were still under consideration, she did not believe the development would go ahead.

She said Kāinga Ora had a large process to work through, and ultimate decisions did not sit with the agency.

“They will be waiting on central government guidance on what 2027, and into the future, looks like.”

In February, Housing Minister Chris Bishop said Kāinga Ora would have a narrowed scope “in line with the back-to-basics approach”.

The agency was funded to deliver about 2650 houses across New Zealand through to 2026 and the Government planned to sell 900 older homes each year, he said.

The new builds would mean no net reduction in state houses.

Whanganui MP Carl Bates (National) told the Chronicle the 192 houses planned in Whanganui were “an unfunded wish list”, part of hundreds, if not thousands, across the country.

Whanganui MP Carl Bates (left) and Housing Minister Chris Bishop in Whanganui in 2023.

“If you look at the number of homes [Kāinga Ora] had planned in Whanganui, that is a significant logistical exercise that even local developers wouldn’t consider,” he said.

“The organisation had to be brought back into line but that doesn’t mean the underlying issue isn’t at the centre of focus.”

He said key housing statistics in Whanganui had improved since the coalition Government came into office, with the public housing register at 229 in February, down 98 from June 2023.

“The transfer register is down seven since June 2023, and contracted housing transitional places are at 29, up 12.”

At the committee meeting, councillor Josh Chandulal-Mackay said Kāinga Ora pulling investment in Whanganui was not good enough.

The council was working on a new housing entity and had responded to the homeless situation over the past two years, he said.

“That is a direct and tangible example of the ratepayer having to step in because central government is abdicating their responsibilities to provide housing for this community,” Chandulal-Mackay said.

Consultation on the council establishing a standalone housing entity is currently open as part of its annual plan process.

This month, Bishop announced $140m for 1500 new social homes to be delivered by five community housing providers, Bates said.

According to Associate Housing Minister Tama Potaka, places identified so far for the 1500 homes are in the Waikato area (23%), Auckland (21%), Nelson (15%), Bay of Plenty (14%), and “other priority locations” (27%).

Bates said he had “sought clarity” from the Government on what Bishop’s announcements in February and April meant for Whanganui.

Councillor Josh Chandulal-Mackay says the lack of Kāinga Ora investment in Whanganui is "not good enough". Photo / NZME

Councillor Kate Joblin, who has the council’s housing and homelessness portfolio, said an uptick in available rental properties in Whanganui, currently at 88 according to real estate websites, did not mean an end to the housing crisis.

“The experience of organisations working with people to get them into housing is that it’s very critical,” she said.

“We are not seeing an improvement on the availability of stock in town.”

Te Ua-Hausman’s report to the committee said the Whanganui Anglican Church had completed two of 19 new transportable homes on one of its eight sites, with four more due this year.

Joblin said it seemed to her that central government wanted to take its “hands off and leave it to the communities” when it came to housing.

The Anglican church’s project was one example, she said.

“Funding, of course, is an issue but wouldn’t it be great if the community stepped up even more and got involved in this space?

“It may be an opportunity.”

Councillor Jenny Duncan said more rentals did not mean more availability.

“If you’ve got a large family, if you’ve got a couple of dogs you might consider to be family, if you’ve got a background that has been difficult in the past, these aren’t the people that get these houses,” she said.

Kāinga Ora was being constrained by central government policy, with inconsistency in its intention and action, she said.

“While those inconsistencies exist, there are a lot of people who suffer and a lot of children who suffer.

“That is absolutely not acceptable.”

Mike Tweed is a multimedia journalist at the Whanganui Chronicle. Since starting in March 2020, he has dabbled in everything from sport to music. At present his focus is local government, primarily the Whanganui District Council.