Government-Funded Social Home Deliveries by Community Housing Providers: Progress Update and Future Plans

Community Housing Providers (CHPs) are getting on with delivering the more than 2,000 social homes funded by the Coalition Government, Housing Minister Chris Bishop and Associate Housing Minister Tama Potaka say.

Today we’re releasing an update on the allocation of the 1500 social houses funded in Budget 2024 for delivery from July 2025 until June 2027, and the 550 social homes for Auckland funded in Budget 2025, says Mr Bishop.

These CHP-delivered social homes are additional to the more than 6,800 net new social homes delivered since November 2023 by Kāinga Ora and CHPs.

Our government backs social housing and we are determined to deliver it better. We are therefore building an entirely new housing investment system centred on three principles – building the right homes, in the right place, for the right people.

We are not there yet but we are making good progress, as shown in the allocations announced today.

The Ministry of Housing and Urban Development (HUD) has deliberately allocated houses to regions based on their identified housing need – for example, by looking at the regional social housing need and emergency housing usage. It makes sense to build houses where they’re most needed.

We are also making sure we get the right type of houses built. Around half of the people on the social housing waitlist need a one-bedroom home, yet only 12 per cent of Kainga Ora’s homes are one bedroom.

For the places we funded through Budgets 2024 and 2025, around 48 per cent of these new homes will be one-bedroom and around 42 per cent will be two-bedroom. In addition, around 22 per cent of these homes are expected to be accessible or accessible-ready for people with mobility needs.

In addition to building the right houses in the right places, we are also taking a new and more sophisticated approach to how we partner with the community sector.

The Government is deliberately partnering with five strategic partner CHPs to deliver more effectively at scale.

Nearly half of the 1500 Budget 2024 places have been allocated to five experienced and savvy CHPs: Community of Refuge Trust Community Housing, Salvation Army, Emerge Aotearoa, Te Āhuru Mōwai, and Accessible Properties NZ.

We are also helping CHPs unlock lower borrowing costs by backing the Community Housing Funding Agency through a $150 million lending facility. This means CHPs will be able to deliver more social homes for less. We are working on further initiatives that will make it easier for CHPs to access financing for social housing. These initiatives will reduce borrowing costs, enabling CHPs to deliver more homes for less and reinvest savings into social programmes.

Mr Bishop says the new Flexible Fund established in Budget 2025 will drive further change in social housing.

The Government currently has a confusing and often duplicative tangle of housing funds, many of which are tightly limited in what they can fund. Successive governments have added new funds over time. The system is inflexible, with investment determined by programmes with available funding rather than what is needed in a region or the right sort of house.

Budget 2025 replaced a suite of housing funds with one single Flexible Fund, which currently consists of $41 million operating funding over four years and $250 million capital funding over the next ten years for additional houses from 1 July 2027. This will enable up to 650-900 further social homes and affordable rentals.

Our intention is that the new Flexible Fund will use a variety of providers to deliver different housing types, including social houses and affordable rentals built by a range of providers including community housing providers, Kāinga Ora and Māori providers. Further announcements will be made later in the year and we are working with the community sector on the design of the fund.

Mr Bishop says the government is making good progress on improving housing for Kiwis: New private sector rents are the lowest they’ve been since October 2023 The social housing register has declined from 25,483 in November 2023 to 19,297 today Over the 12-months to 30 June 2025, 1,041 households and 2,200 children were moved out of motels and into social housing via the government’s Priority One fast-track.

Ultimately the root cause of our housing crisis – including in social housing – is a planning system that has stymied not encouraged housing growth, and a broken infrastructure funding and financing system. The government’s Going for Housing Growth reforms are progressing well, alongside fundamental reform of our planning system. In the long-term, these reforms will drive more affordable housing for all.

Minister Potaka said many whānau will also benefit from the Government’s significant progress partnering with Māori housing providers delivering affordable rental homes across the country.

Earlier this year, I announced $200 million would be accelerated into building 400 more homes in high-need areas such as Te Tai Tokerau, Taranaki, and Waikato by June 2027.

So far, nearly 350 affordable rentals have already been approved for construction under these partnerships. It’s been great visiting providers at sites like Ōwhata Kōhanga Rakau in Rotorua and Toitū Tairawhiti on the East Coast. These are communities where we hear from whānau about how proper housing will mean a big difference in terms of healthier communities, stronger school attendance and for maintaining regular mahi.

Looking ahead, we expect that credible Māori providers and community housing providers will be eligible for investment through the Flexible Fund, particularly given their recent success in delivering quality houses.

Note to editors: The Ministry of Housing and Urban Development will publish a monthly dashboard on CHP housing delivery. The first monthly dashboard can be found on their website.