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• Chairman's report
• Chief Executive's Report
• Outcomes framework
• Strategic framework
• Achievements in 2007/08
  • Priority one
  • Priority two
  • Priority three
  • Priority four
  • Priority five
  • Priority six
• Statement of responsibility
• Statement of service performance
• Financial Statements
• Audit report - Housing New Zealand Corporation and Group
• Audit Report - Housing Agency Account
• Corporate Governance
• Staff
• Appendix 1

About us

Priority two

• provided housing assistance to those most in need through the Social Allocation System
• subsidised tenants' rental costs with income-related rent
• matched housing design and amenity value with tenant and community needs
• improved service performance through the customer service delivery channels
• acquired housing in high-priority demand locations.

The Corporation's role is more than putting a roof over people's heads. This priority ensures the Corporation provides innovative and focused solutions to housing needs. The Corporation recognises that sustainable housing solutions need to promote employment and contribute, where possible, to developing the positive health, education and childcare outcomes that a number of government agencies seek to achieve. Some of these solutions include building new houses, redeveloping and reconfiguring existing properties, and developing sustainable communities.

People who need housing support also need a community where they have opportunities to participate and grow.

There are a range of activities to manage tenancies, including improving customer service.

The financial costs of this priority can be found on this page.

What was achieved

Assist households into state housing

The Government requires the Corporation to allocate housing on the basis of need. Housing need is defined as an inability to access or sustain housing that is suitable, adequate and affordable. Once eligibility is established, priority is given to households experiencing housing and financial stress that is severe, urgent and likely to persist over time, and who cannot afford the private housing market.

When a state house becomes vacant or a newly acquired house is available, applicants are matched with housing that meets their requirements. Priority is given to those with the greatest housing need. Where a state house is not immediately available, temporary housing solutions may be offered to applicants if such a solution will reduce their level of risk. Applicants with complex needs that require intensive management, or applicants who require modified housing, are also identified during the allocation process.The measure was to assist 9,500-10,000 households into state houses. This measure was not achieved, with 9,429 being assisted. The allocation of social housing depends on the availability of houses through tenant turnover and the acquisition of new or leased housing. Tenant turnover was higher than in previous years, but the Corporation was unable to acquire as many new or leased properties as planned, due to recent slowdown in the housing market.

Increase the state housing portfolio

The asset management programme involves a range of activities to increase the state housing portfolio. These activities include:

• constructing new properties through redevelopment of Corporation-owned properties and through contracts with developers
• leasing of properties from private investors in the residential market.

The measure was to increase the state housing portfolio by 1,287 properties. This measure was not achieved. The actual increase was 1,177. The declining residential tenancy market meant new leases became increasingly difficult to secure. Current financial pressures made investing in residential property less attractive as the year progressed. This impacted on the overall gross acquisition measure as it was difficult to attract quality properties in the right locations that met the Corporation's leasing criteria. The delivery of additional units in the main capital programme partially mitigated the shortfall in leases.

The net acquisition figure is represented by the gross acquisition total less sales, lease expiries, disposals and write-downs that occurred during the financial year.

The measure was to increase acquisitions within the range of 510-575 properties. The measurement range was reduced during the year to 487-552, due to adjustments made to compensate for 23 properties that were acquired in the 2006/07 financial year. This adjusted measure was achieved, with an actual net increase of 497 properties.

Current housing portfolio

Table 1 shows the number and proportion of state houses, grouped by the number of bedrooms in the rental housing portfolio. Nearly 80 percent of the Corporation's housing has two or three bedrooms. The table does not differentiate between double- or single-sized bedrooms.

Across New Zealand, three-bedroom properties are the most common, accounting for 46 percent of the Corporation's housing. The trend in the private sector is for more bedrooms, with the proportion of houses with four or more bedrooms increasing from 19 percent in 1991 to 28 percent in 2006. By comparison, nine percent of the Corporation's housing has four or more bedrooms.

Table 1: Proportions and number of state rental units by the number of bedrooms

Table 2 shows the number and proportion of Corporation houses by age as at 30 June 2008. More than 65

percent of housing is older than 30 years. Approximately 10 percent is under 10 years old.

Table 2: Age of housing

Table 3 shows the types of dwellings the Corporation holds.

Table 3: Type of dwelling

Tenant satisfaction

The Corporation is committed to ensuring that strong and positive relationships are built and maintained with customers. In 2007/08, a tenant satisfaction survey was reintroduced. It included both quantitative and qualitative questions and over 500 tenants each quarter were surveyed. The survey is an important way to better understand customers and the issues they face, and to identify areas for business development and improvement.

The measure was to achieve greater than a 70 percent level of overall satisfaction with the Corporation's service. This measure was exceeded, with 71 percent of tenants satisfied.

Access to state housing is determined through a Social Allocation System. This system prioritises eligible households on the basis of their housing need. People with the most severe need get allocated housing before those in less serious housing situations. The Social Allocation System annual audit looks at how well the system assessed the housing need of households applying for a state house.

The measure was for more than 95 percent correct assessments in the annual audit. This measure was not achieved, with 94 percent correct assessments made. The 1 percent variance represents 32 incorrect assessments. However, the majority of these incorrect assessments were corrected while the applicants were waiting for housing.

It is important people are able to buy other necessities after paying their housing costs. Affordability becomes a concern when housing costs exceed a person's/household's income by 30 percent. With readily available credit, household debt can affect people's ability to get into and stay in adequate housing.

To improve affordability, the Government provides two major forms of assistance.

• State housing and income-related rents that give priority to those in greatest need
• The Accommodation Supplement for people whose housing costs are considered too high to be met through their income alone

All Corporation tenants are eligible to apply for income-related rents. The income-related rent annual audit looks at how well the Corporation assesses the income-related rent of tenants.

The measure was for more than 96 percent of income-related rent assessments to be correct in the annual audit. This measure was achieved, with 97 percent accuracy.

Better utilisation

This performance indicator requires the Corporation to manage tenancies more effectively. As circumstances change, a state house may become inadequate for a large family, or too large for a single tenant. In considering whether to transfer a tenant, the Corporation assesses the design, amenity value and community needs. The tenant must also be willing to relocate.

Initial results from an assistance-to-move project showed that only a small number of tenants in under-utilised properties were willing to move, as many consider the property to be their family home. Of those tenants willing to move, transfers were only completed if the Corporation could offer the tenant a substantial improvement to their current housing. Generally, the offer was a brand new stand-alone house in an area close to their support networks.

The measure was 300 transfers recorded. This measure was not achieved. Despite not meeting the measure, the better utilisation programme has supported 293 tenants to move from large properties to more suitable, smaller accommodation. This has freed up 363 bedrooms for families on the priority waiting list, equivalent to 121 threebedroom houses.

Looking ahead

Housing demand is constantly changing. The Corporation will expand its focus and move from being an organisation largely focused on managing properties and tenancies to one that takes a more people-driven, tailored and sustainable approach to the needs of individuals and communities. This means broadening the role of the Corporation beyond that of a social landlord/property manager to be a catalyst for community development.