Labour backs community housing to build more homes
Labour will raise the Crown guarantee for Community Housing Funding Agency (CHFA) Social Bonds, helping community housing providers build more homes by lowering the cost of finance.
“After three years of neglect, New Zealand’s housing shortage is getting worse. One of the fastest and most effective ways to build more homes is to reduce the cost of finance for the organisations already doing the work,” Labour housing spokesperson Kieran McAnulty said.
“This is a Crown guarantee, similar to the guarantee provided to banks, that would only be called on in the unlikely event of a default. The community housing sector was hoping the current Government would provide this guarantee. They didn’t, but Labour will.
“Combined with further reductions in CHFA lending margins, the guarantee is expected to cut borrowing costs by around half a percentage point from day one.
“By enabling AAA-rated borrowing, interest rates for housing providers are cut, and those savings are invested in building more homes. The maths is straightforward, the CHFA estimate for every 11 homes built, the financing efficiency could pay for a twelfth, at no additional cost to the taxpayer.
“That means more homes can be built with the same investment. Every dollar saved on interest is a dollar that can go into building homes and supporting tenants.
“This will back the organisations already delivering affordable housing across New Zealand, including charities, iwi, Pacific and disability organisations, and providers of public housing, transitional housing, affordable rentals, accessible homes and housing for older people.
“Community housing providers are ready to build. What they need is a Labour government willing to back them.
“The $950 million guarantee would come into effect from Labour’s first Budget in Government in 2027.
“This policy will help get more affordable homes built faster, so more New Zealanders can access the housing they need,” Kieran McAnulty said.
The CoC, leaving adquate housing to fend for itself, has not done anything for those whose income is insufficient to meet mortgage repayments or rents – which many of our workers are finding! This has been a deliberate strategy from the RW, spiteful, cruel and so very corrupt. The gap between the ‘haves’ and have nots’ is so large now it’s almost impossible to fix. And how did it come to that? GREED, GREED, GREED from our top—feeders who simply must have ALL the financial rewards at the expense of the working class. Until this ugly, vile issue is mended it will continue to adversely affect the lives of many and lead to more homelessness. One day, some of you will realise just how appalling this deliberate action was perpetrated! Some of you, of course, will never allow yourselves to see it, as you are BLIND, GREEDY and STUPID! So Labour, get on with installing a Crown Guarantee when you get in – it is already a high priority and that won’t change!