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Part 1: Outcomes framework

Our outcomes describe what we seek to achieve through our work and how this will impact on the lives of New Zealanders.

The Corporation's outcomes framework shows the rationale for our business and the way we carry it out it is our 'intervention logic'. The framework shows how we will work to balance the demand from individuals and families with housing need with an appropriate supply of social housing. In particular, it recognises that future social housing can, and should be, supplied by a range of other non-government providers alongside state housing.

We work with others towards a shared overarching outcome and two intermediate outcomes. Impact statements describe the key results that can be directly attributed to our work. We have adopted five strategic priorities to achieve the stated impacts over the next three years.

The diagram overleaf shows the relationship between the Government's themes, and our outcomes, impacts, priorities and key activities.

Figure 1: Outcomes framework

Key stakeholders in the housing sector work effectively to achieve mutually-agreed housing outcomes.

GOVERNMENT THEMES
Economic transformation
Families, young and old
National identity
Overarching outcome All New Zealanders have access to affordable, sustainable, good quality housing appropriate to their needs.
Intermediate outcomes A SUPPLY OF GOOD QUALITY AFFORDABLE HOUSING
The housing sector has the capability to deliver good quality, affordable housing appropriate to changing needs.
SUSTAINABLE HOUSING SOLUTIONS
New Zealanders have the capacity to obtain and maintain housing and contribute to cohesive communities.
Impacts The Corporation's housing design and associated urban developments are appropriate to the needs and aspirations of residents. Housing needs are met through a well-designed, efficiently utilised, maintained and managed social housing stock. A stronger social housing sector and involved communities that have the capability to provide appropriate local housing solutions. People on low and modest incomes are able to satisfactorily house themselves and have a stake in their community.
Strategic priorities Coordinate the Government's New Zealand Housing Strategy Demonstrate housing development best practice Ensure effective state housing stewardship Support community-based social housing initiatives Facilitate sustainable home ownership
Key activities Policy adviser Researcher and evaluator Ministerial support Property/land developer Asset manager Social landlord Capacity builder Lender and insurer
Integrated urban development (Hobsonville) Asset planning and management Services to tenants Community Renewal Mortgage Insurance Scheme (Welcome Home Loans)
Greenfields developments (Papakura and Weymouth) Increasing the housing portfolio* Social Allocation System and waiting list management Healthy Housing Low Deposit Rural Lending
Applying best practice to state housing redevelopment (Design Guide) Maintenance Management of income related rents Capacity development grants Home ownership education
Influencing urban design, zoning and planning Modernisation Local government, iwi and community housing support (Housing Innovation Fund) Building maintenance and infrastructure loans
Energy retrofits
Our approach to our work Framework for working with Maori
Organisational capability building (see section 'Organisational health and capability')
Working with others (see section 'Partners and stakeholders')

Overall outcome

The overall outcome that the Corporation works to achieve is based on the vision of the New Zealand Housing Strategy, adopted by the Government in May 2005, which states:

All New Zealanders have access to affordable, sustainable, good quality housing appropriate to their needs.

This outcome cannot be achieved through our work alone as many other government agencies and stakeholders also contribute towards it.

Intermediate outcomes

Our intermediate outcomes are those we contribute to through our activities and our work with government and non-government partners in the housing sector.

Intermediate outcome one: A supply of good quality, affordable housing.

Description: The housing sector has the capability to deliver good quality, affordable housing that is appropriate to changing needs. This outcome focuses on interventions that improve or increase the overall supply and distribution of affordable housing across the sector.

Intermediate outcome two: Sustainable housing solutions.

Description: New Zealanders have the capacity to obtain and maintain housing, and to contribute to cohesive communities. This outcome focuses on interventions that strengthen the ability of individuals, households and communities to achieve their own housing solutions.

The Corporation's outcomes contribute to the Government's three themes for the next three years: Economic transformation; families, young and old; and national identity.

In particular, we support families through providing good housing and related services. This enables families to bring up their children in safe communities and participate in the economic, social and cultural life of the nation.

While families, young and old most obviously fits with our work, we also have a role to play in supporting the other two themes. Strong families and communities underpin economic transformation, building foundations that allow individuals to contribute fully and excel. Good quality housing contributes to the wellbeing of New Zealanders, and helps support families, safe communities and improved health, education and employment outcomes. The provision of affordable housing is strongly ingrained in the Kiwi culture that helps shape our national identity.

The Corporation is addressing seven strategic housing issues within our outcomes framework that will lead to a sounder and more efficient housing sector.

We will contribute to the intermediate outcome, (a supply of good quality affordable housing) by addressing the following issues.

  • Meeting the Corporation's stewardship obligations.
  • Improving the use of state housing to meet housing need.
  • Addressing the decreasing supply of affordable land.
  • Developing community-based housing.
  • Improving substandard rural housing.

We will contribute to the intermediate outcome, (sustainable housing solutions) by addressing the:

  • larger private rental sector market
  • declining affordability of home ownership.

Our impacts

The impact statements opposite describe the results the Corporation is aiming to achieve through its strategic business priorities and operations over the next three years. If our efforts are successful, we should make a significant contribution to our intermediate outcomes.

Table 3: OUR IMPACTS

Intermediate outcome Impact statement Description
A supply of good quality, affordable housing. Key stakeholders in the housing sector work effectively to achieve mutually-agreed housing outcomes. Significant progress is made to achieve the outcomes sought by the New Zealand Housing Strategy because effective relationships have been built between central government agencies, representatives of the private housing sector, local government and social housing providers.
The Corporation's housing design and associated urban developments are appropriate to the needs and aspirations of residents. The Corporation's initiatives to design or redevelop our homes, work with communities and other partners to undertake major affordable housing developments, and to influence best practice within local government and the affordable segment of the private housing market.
Housing needs are met through well-designed, efficiently-utilised, maintained and managed social housing and related services. Existing state housing is effectively used, modernised and maintained and new developments are undertaken to meet demand. People unable to enter the private market receive an effective social housing service according to their needs.
Sustainable housing solutions. A stronger social housing sector and involved communities with the capability to provide appropriate local housing solutions. Local authorities, community based organisations, iwi and communities with high social housing needs receive the necessary support to provide and maintain sustainable social housing and associated amenities that enable more cohesive communities.
People on low and modest incomes are able to satisfactorily house themselves and have a stake in their community. Those with the means to sustain home ownership are provided with the support, resources, skills and knowledge to access finance and buy a house.

Our strategic priorities

The Corporation has adopted five strategic priorities for the next three years to achieve the impact statements listed in Table 3. These priorities bring a strategic focus to our work and are aligned with our responsibilities under the New Zealand Housing Strategy.

Our priorities are not ranked as they include a diverse range of activities such as policy, service delivery, support and consultation work, and have significantly different levels of resource commitment. The major part of the Corporation's resources is used in carrying out our responsibilities for the stewardship of the State's housing assets, covered under strategic priority three.

Strategic priority one: Coordinate the Government's New Zealand Housing Strategy

Impact addressed: Key stakeholders in the housing sector work effectively to achieve mutually-agreed housing outcomes.

This priority relates to the Corporation's responsibilities under the New Zealand Housing Strategy for coordinating the whole-of government steering committee that oversees its implementation. We are also responsible, with other relevant agencies, for developing a set of indicators and arrangements to monitor progress. This priority also covers our policy advice, ministerial support, and research and evaluation roles.

What we'll do

The Corporation worked with the Department of Building and Housing, and other agencies, to develop the New Zealand Housing Strategy. A number of government agencies will play a part in its implementation - a 10-year programme of action. The Corporation, and other relevant agencies, will report annually on the strategy's implementation.

Initiatives the Corporation will lead or contribute to under the strategy's programme of action are described as follows.

  • The Corporation worked with the Department of Building and Housing, and other agencies, to develop the New Zealand Housing Strategy. A number of government agencies will play a part in its implementation - a 10-year programme of action. The Corporation, and other relevant agencies, will report annually on the strategy's implementation. Initiatives the Corporation will lead or contribute to under the strategy's programme of action are described as follows.
  • Area 6: Sector capability. The Government alone cannot meet the demand for good quality, affordable rental housing. The whole housing sector has a role to play. The Corporation will help build the capability of the housing sector to deliver affordable housing. We will undertake and support research and distribute information on housing supply and demand, home ownership trends and affordability, to position the sector to better respond to future housing need.
  • Area 7: Meeting diverse needs. Diverse and changing needs are not always well-catered for by the housing sector. We will develop work programmes with other relevant agencies for older people, women, children and youth, disabled people, Maori, Pacific peoples and other ethnic communities that have social, health and support needs not always well met by the private market.

Maori comprise 29 percent of our tenants. An increasing number of iwi have indicated an interest in investing in the housing sector, creating potential opportunities for the Corporation to work with iwi and Maori. The Corporation has developed a framework for working with Maori to support this. The Corporation's Board has established a Maori Capability Sub-Committee to ensure we develop Maori capability appropriate to our needs, and build appropriate governance relationships with iwi across the country.

Other activities under this strategic priority include research to understand changing housing requirements and identify diverse needs, and other policy-related work including contributing to the review of the Residential Tenancies Act 1986, and the evaluation of key programmes. The Corporation will also assess how we can better collect and analyse housing information, and use our evaluation and research activities, to develop a comprehensive evidence base that tracks changing housing needs and the needs of diverse groups. The information base will inform our policy advice to the Government.

Monitoring progress

We will use a framework of indicators developed with Statistics New Zealand, the Department of Building and Housing and the Ministry of Social Development to monitor and report progress in implementing the strategy's programme of action. Corporation indicators will include an assessment of how effectively key stakeholders involved in the New Zealand Housing Strategy can work together to achieve mutually-agreed outcomes. We will also adopt a good practice policy and indicators for providing high quality, evidence-based advice and information to the Minister of Housing.

Strategic priority two: Demonstrate housing development best practice

Impact addressed: The Corporation's housing design and associated urban developments are appropriate to the needs and aspirations of residents.

This priority is about using the Corporation's mandate regarding land and property development to further contribute to the Government's objectives. We have a role in promoting and demonstrating good practice through our construction work and development projects. This includes the advice and assistance we give to other social housing providers and community organisations, as well as our comments and advice on improving the management of resource consents.

What we'll do

The scale of housing demand and scarcity of suitable opportunities, particularly in Auckland, has resulted in the Corporation taking a more active property development role to secure land and/or redevelop appropriate housing at a reasonable cost to meet demand. We will also test and demonstrate good urban design around affordable housing with the aim of creating cohesive communities. As part of our responsibilities under the New Zealand Housing Strategy we will work with the housing sector to better understand housing supply dynamics and find solutions to the problems identified.

We will identify land suitable for affordable housing development, including surplus Crown and local authority land. We will seek to improve existing suburbs that have high concentrations of state housing, and influence development patterns to generate better housing outcomes. The Corporation will also identify opportunities, especially in Auckland, to redevelop buildings and sections to increase the supply of affordable housing.

Central and local government have multiple objectives in some areas such as social housing, promoting home ownership and sustainable urban development. The Corporation has a mandate to proceed with the planning phase for developing an integrated urban community at Hobsonville that will set benchmarks regarding commercially-driven housing development, urban design, infrastructure and sustainability. We are working with partners to undertake other development projects in Papakura and Weymouth.

Monitoring progress

Indicators might include:

  • affordable housing design - we build houses using appropriate building and energy efficiency technology, and which are cost effective
  • associated property development - the areas we develop attract a mix of households and tenures.

Strategic priority three: Ensure effective state housing stewardship

Impact addressed: Housing needs are met through well-designed, efficiently-utilised, maintained and managed social housing and related services.

The focus of this priority is to effectively manage state housing by increasing the number of state homes in high demand areas, using assets effectively, modernising and maintaining existing homes, and improving new housing design to meet changing needs. The Corporation uses the major proportion of our financial and staff resources to achieve this result.

What we'll do

The Corporation provides state housing assistance to people in greatest need. We do this through the Social Allocation System, a process that assesses applicants' housing needs and their priority. We also manage subsidies for tenants' rental costs, in the form of income-related rent. We will continue to improve our tenancy management and tenant support services to meet our customers' distinct and changing housing needs. Special attention will be given to tenant households with high or complex needs, through individually designed Household Action Plans and intensive case management. Further research will be carried out to better understand the nature of housing need, and the reasons why applicants repeatedly come on and off the waiting list.

The housing market caters for the needs of some 90 percent of New Zealanders without government assistance. Lower and middle income households are increasingly experiencing affordability problems in accessing housing. At the same time, demand for social housing has remained high.

The Corporation needs enough houses of the right kind, quality and location to meet housing need. To make sure properties remain fit for current tenants and sustainable for future generations, maintenance and improvement must remain the Corporation's first priority and be undertaken at the level needed to meet forecast requirements. Other activities under this priority include strategic asset planning and management (acquisitions, leasing, redevelopment and building), and reconfiguration to preserve amenity value.

The Corporation will continue to assess longterm capital requirements to allow us to consider how funding for modernisation, maintenance, reconfiguration, acquisitions, redevelopment and leasing should be prioritised to best exercise the Corporation's stewardship obligations. We will actively pursue better use of our housing by encouraging, where appropriate, tenants to move to housing more suited to their current needs. Research has shown that best results are achieved when a coordinated approach is taken to provide education, intensive tenancy management, assistance to move, and modernisation of housing in areas of high demand.

We have sought to acquire a broader understanding of local housing needs by preparing regional profiles for each of our regions. We are using these to develop and progressively refine regional plans that integrate needs assessment and waiting list management, tenancy services, asset planning, rural housing, community-based initiatives and evaluations tailored to the unique circumstances of each region. We are working with regional stakeholders to develop a coordinated approach to regional outcomes and strategies to help address long-term housing supply.

The Corporation needs skilled staff to manage the delivery of high quality services. This includes proactively managing tenancies to ensure we meet tenants' needs and the supply of state housing is used effectively. We give particular priority to investing in staff development. This is discussed further in the section 'Organisational development and capability'.

Monitoring progress

Progress measures will include high-level indicators of tenure stability and security within state housing, and effectiveness in matching household needs with appropriate house size and configuration. We will build on the work of the Wellington School of Medicine regarding crowding and health, and the evaluation of the Healthy Housing programme. We need to refine our indicators to include measures of housing needs. A measure of our effectiveness is to ensure our homes are fully tenanted so housing is empty only when necessary for tenancy management or maintenance.

Strategic priority four: Support community based social housing initiatives

Impact addressed: A stronger social housing sector and involved communities that have the capability to provide appropriate local housing solutions.

This priority focuses on strengthening the capability of social housing providers, and supporting local government, community-based organisations and iwi to provide social housing and other community initiatives.

What we'll do

Local authorities, community-based organisations and iwi manage one-fifth of New Zealand's social housing (18,000 homes). The Government supports local government provision and increasing the amount of social housing provided by community-based organisations and iwi. While not necessarily less costly than state housing, locally-provided housing may be better for meeting the needs of some high priority applicants.

Overall we will strengthen our relationships with community-based organisations, Maori and iwi; gather information on the sector's needs; and develop a framework to evaluate and support this sector's outcomes.

Community housing providers need access to funding and help to develop the necessary capability to provide quality social housing. We will provide an appropriate mix of grants and loans through the Housing Innovation Fund. We will also encourage non-government investors, in particular private sector finance, to invest in social housing. The Corporation offers capability-building advice and help to new and existing social housing providers through, for example, Corporation staff secondments, web based advice, and capability-building grants.

We will maintain and develop initiatives such as Community Renewal and Healthy Housing, where tenants are actively involved in addressing housing needs. These programmes have demonstrated their value in modernising and maintaining housing, addressing crowding and poor health, strengthening networks and boosting community pride. International research confirms New Zealand's experience that the best housing solutions are found when government agencies work together with communities. We will seek to promote national cross-government partnerships to further such neighbourhood-based initiatives.

The Corporation will continue its involvement with rural housing initiatives with particular focus on communities with severe substandard housing, those with social and economic development strategies planned, and communities with intrinsic cultural values that influence their housing preferences. We will also better align our support for these communities with our other work.

Monitoring progress

An intervention framework has been developed to inform ongoing monitoring and evaluation of the Community Renewal programme. Other indicators might include:

  • the number of extra homes provided through the Housing Innovation Fund
  • the number of existing local government houses modernised or reconfigured through the Housing Innovation Fund
  • the number of people receiving temporary or emergency housing through our community group housing programme.

Strategic priority five: Facilitate sustainable home ownership

Impact addressed: People on low and modest incomes are able to satisfactorily house themselves and have a stake in their community. This priority is about supporting individuals and families on low and modest incomes into home ownership. We will help them access the finance, knowledge and skills they need to undertake and maintain home ownership. The priority includes the Corporation's contribution to the development of new programmes to help home ownership.

What we'll do

Although New Zealand's home ownership rate is high by international standards, the recent decline in home ownership is of concern. People on low and moderate incomes find entering home ownership difficult in a period of rising house prices. They often lack the access to stable incomes, credit, information and/or financial budgeting skills to buy a house.

The Corporation is responsible for a number of initiatives under the New Zealand Housing Strategy to help people on low and moderate incomes into home ownership. We are helping to develop and implement the housing-related components of KiwiSaver. We are also investigating possible new forms of home ownership, including equity share arrangements. Equity share involves an organisation, such as a lender, owning a specified share of the borrower's home.

The Corporation is expanding the Mortgage Insurance Scheme (marketed as Welcome Home Loans) to other lenders. We provide lenders with subsidised mortgage insurance for people seeking loans who are just outside normal commercial lending criteria. From 2009/10 we will implement a home ownership assistance package that links deposit assistance with work based savings as part of the KiwiSaver initiative. The Corporation will implement and deliver a deposit subsidy to eligible first home buyers who enrol in KiwiSaver.

We will provide education programmes to support decision-making on home ownership and help people to make sustainable decisions. An evaluation study will inform the development of the programme.

The Corporation will continue to provide home lending programmes to low-income families in rural areas and those living on multiple owned Maori land. These include housing repairs and suspensory loans. We will also investigate the need for new or different home ownership products, including possible equity share arrangements, to meet the diverse needs of Maori, Pacific peoples and other groups. We will explore options to increase access to the Rural Housing Programme by modifying its products and focusing on promoting sustainable housing in the medium to long term.

Monitoring progress

Work is under way to develop evaluations of our home ownership education programmes, including those provided as part of the Low Deposit Rural Lending scheme and Pasefika Pulse. We are also supporting the KiwiSaver evaluation strategy, which includes monitoring, collecting and analysing information.

Other relevant indicators include the number of target households helped into sustained home ownership through Low-Deposit Rural Lending and Welcome Home Loans.

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