Labour backs community housing to build more homes
Labour willΒ raise theΒ Crown guarantee for Community Housing Funding Agency (CHFA) Social Bonds, helping community housing providers build more homes by lowering the cost of finance.
βAfter three years of neglect, NewΒ Zealand’sΒ housingΒ shortage is getting worse.Β One of theΒ fastestΒ and mostΒ effectiveΒ waysΒ to build more homes is to reduceΒ the cost of finance for theΒ organisations already doing the work,β Labour housing spokesperson Kieran McAnulty said.
βThis isΒ aΒ CrownΒ guarantee,Β similar toΒ the guarantee provided to banks,Β thatΒ wouldΒ onlyΒ beΒ calledΒ onΒ in the unlikely event ofΒ aΒ default.Β The community housing sector was hoping theΒ currentΒ Government would provide this guarantee. TheyΒ didnβt, but Labour will.
βCombined with further reductions in CHFA lending margins, the guarantee is expected to cut borrowing costs by around half a percentage point from day one.
βByΒ enabling AAA-rated borrowing,Β interest rates for housing providersΒ are cut, and those savingsΒ are invested inΒ buildingΒ Β moreΒ homes. The maths is straightforward,Β the CHFA estimateΒ for every 11 homes built, the financing efficiency could pay for aΒ twelfth, at noΒ additionalΒ cost to the taxpayer.
βThat means more homes can be built with the same investment.Β Every dollar saved on interest isΒ aΒ dollar that can go into building homes and supporting tenants.
βThis 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, accessibleΒ homesΒ and housing for older people.
βCommunity housing providers areΒ ready toΒ build. What they need is a Labour government willing to back them.
βTheΒ $950 million guaranteeΒ would come into effect from Labour’s first Budget in Government in 2027.
βThis policy will help getΒ more affordable homesΒ builtΒ faster,Β so moreΒ New ZealandersΒ can access the housing they need,βΒ 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 β 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 topβfeeders 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 β it is already a high priority and that won’t change!