More money to build state houses

10.40am

The Government has announced a $187 million funding package for housing that will see new state homes built and the problem of substandard housing in some areas tackled.

Housing Minister Mark Gosche and his associate Tariana Turia said in a joint statement the $186.8m funding would be spread over the next four years.

They said $71.99m would be spent over the next four years to build 360 state houses, mainly in Auckland.

The 360 homes were additional to the 2169 state houses the Government had already planned to build during that period, the ministers said.

"Under National the number of state houses was reduced by about 11,500 nationwide and they had plans to sell off another 10,000. This Government has reversed this trend. We are replenishing the stock and by the end of this calendar year we expect to have acquired about 1600 homes since we became government."

The ministers said $53.34m would be spent to provide 500 affordable rental homes for families living in derelict or makeshift dwellings in Northland, East Cape and the Eastern Bay of Plenty.

About 290 of the 500 houses would be new state houses.

The rest were expected to come as a result of concessionary loans to iwi and other community groups to help them build their own portfolios of low cost rental and rent-to-buy houses.

Late last year about 15,000 houses in Northland, East Coast and Eastern Bay of Plenty were surveyed to assess the level of substandard housing.

"Based on these assessments, an estimated 600 new dwellings are required. Housing New Zealand is already expecting to acquire 100 new homes this financial year. This new funding will enable the balance of 500 to be added over four years," Mr Gosche said.

About 300 of the new homes would be in Northland, 200 in Eastern Bay of Plenty and 100 on the East Coast.

In January, the Government announced spending of $7.5m to help owners in these areas carry out essential repairs to their rundown homes.

The new funding would include loans for joint venture housing projects, with Housing New Zealand providing capital and the partner meeting land, labour and other costs.

Also, $29.98m would go to the "healthy housing" programme that was aimed at reducing overcrowding in Housing New Zealand homes to reduce the spread of infectious diseases such as meningococcal disease.

The scheme allowed for homes to be extended to accommodate large families and for houses to be modified to improve ventilation and insulation.

The programme is currently operating in the Auckland suburbs of Mangere, Otara and Onehunga. The $29.98m funding would allow it to be extended to Glen Innes and Manurewa, also in Auckland.

The ministers said 1350 families could benefit from the extra funding.

Mrs Turia, who is also associate health minister, said overcrowded houses could act as incubators for infectious diseases such as meningococcal, tuberculosis and rheumatic fever. Infectious diseases were the cause of 6 per cent of deaths and 11 per cent of hospital admissions in the past decade.

Also announced was $20.53m for Housing New Zealand to buy and modify community homes for residents of Nelson's Braemar Hospital and Levin's Kimberley Centre.

The first five houses would be bought by next month for residents moving out of Braemar, with other homes purchased over the next three years.

In October 2001, $2.9m was announced for house purchases. Disability Issues Minister Ruth Dyson said the funding announced today would ensure all former Braemar and Kimberley residents could live in the community.

Starting in July, about 375 Kimberley residents would be resettled in the community over the next three years while 80 Braemar residents would be moved over a 14-month period.

No resident would leave the centres until appropriate support was in place, Ms Dyson said.

"We will provide 24-hour care and a range of specialist services for those who need them. Each resident's personal friendships, gender, skills, age and preferences will be taken into account when deciding where they will live."

The Government said it would spend $11m providing another 50 community houses for vulnerable people -- including women and children seeking refuge, people with physical or intellectual disabilities and those with a mental illness.

This money was on top of $20m already allocated for community housing over the next four years.

The new funding would take the total number of community houses to about 1400.

Mrs Turia said the Government was providing about $4.5m a year to community groups which had trouble meeting rent payments.

- NZPA

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