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Kāinga Ora – Homes and Communities

Kaporeihana ā-Whare (Māori)
Agency overview
Formed	1894 – State Advances Office 1936 – State Advances Corporation 1974 – Housing Corporation of New Zealand (HCNZ) 2001 – Housing New Zealand Corporation 2018 – Housing New Zealand (HNZ) 2019 – Kāinga Ora – Homes and Communities
Jurisdiction	New Zealand
Headquarters	Level 5, 7 Waterloo Quay Wellington 6011, New Zealand
Employees	3305 (2023)
Ministers responsible	Hon Chris Bishop, Minister of Housing Hon Tama Potaka, Associate Minister of Housing (Social Housing)
Agency executives	Simon Moutter, Board Chairperson Matt Crockett, Chief Executive
Website	www.kaingaora.govt.nz

Kāinga Ora, officially Kāinga Ora – Homes and Communities, is a Crown agency that provides rental housing for New Zealanders in need. It has Crown entity status under the Kāinga Ora–Homes and Communities Act 2019.

On 1 October 2019 Kāinga Ora was formed by the merger of Housing New Zealand with its development subsidiary Homes, Land, Community (HLC) and the KiwiBuild Unit from the Ministry of Housing.

Kāinga Ora is a large and important Crown entity, with assets of $45 billion and over $2.5 billion of expenditure each year. It owns over 70,000 homes and is the country’s biggest landlord, providing accommodation to people often in great need.

History

Origins

State housing in New Zealand dates from 1894 with the establishment of the State Advances Office.

In 1905, Prime Minister Richard Seddon introduced the Workers Dwellings Act 1905, introducing public housing to New Zealand. This Act made New Zealand the first nation in the Western world to provide public housing for its citizens. The scheme ultimately failed in 1906 when the workers could no longer afford to pay the high rents asked by the Government for the properties.

The first official state house was opened in 1937 at 12 Fife Lane in Miramar in Wellington.

Housing New Zealand, 1974-2019

Housing Corporation of New Zealand was formed in 1974 through a merger of the State Advances Corporation (SAC) and the Housing Division of the Ministry of Works.

The Housing New Zealand Corporation in its current form is a statutory corporation that was established on 1 July 2001 under the Housing Corporation Act 1974, as amended by the Housing Corporation Amendment Act 2001. This was an amalgamation of Housing New Zealand Limited, Community Housing Limited, and the Ministry of Social Policy. In 2018 the Labour-led coalition government removed the word Corporation from the name and it was formally known as Housing New Zealand (HNZ).

Kāinga Ora, 2019–present

On 1 October 2019 the Labour-led government merged Housing New Zealand with its development subsidiary HLC and the KiwiBuild Unit from the Ministry of Housing and Urban Development to form a new Crown entity called Kāinga Ora – Homes and Communities.

Following the 2023 New Zealand general election, the incoming National-led coalition government announced that former Prime Minister Bill English, financial expert Simon Allen, and Ceinwein McNeil would be leading an independent review into the agency's financial situation, procurement, and asset management.

In March 2024, Housing Minister Chris Bishop and Finance Minister Nicola Willis ordered Kāinga Ora to end the previous Labour Government's "Sustainable Tenancies Framework" and take disciplinary action against unruly tenants and those with overdue rent including evictions and relocations. The Government's announcement was criticised by Green Party housing spokesperson Tamatha Paul, who described the policy as seeking to create a category of "undeserving poor" and argued that housing was a basic right. Labour Party housing spokesperson Kieran McAnulty responded that the Government's policy failed to address the housing shortage. By contrast, ACT Party leader David Seymour and Manurewa-Papakura Ward Councillor Daniel Newman welcomed the eviction of unruly state housing tenants.

In May 2024, English's review into Kāinga Ora criticised the housing agency's excessive borrowing practices and leadership. On 20 May, Prime Minister Christopher Luxon and Housing Minister Bishop announced on a multi-year revamp of the agency including replacing the leadership board, realigning contractual arrangements across Kāinga Ora and community housing providers, simplifying the agency's directive and requiring the new leadership board to develop a plan to improve financial performance and reduce losses. Simon Moutter, the former chief executive of Powerco, Auckland International Airport and Spark New Zealand, was appointed Kāinga Ora's new board chair, effective 4 June 2024. On 21 May, Newshub reported that the Government would scrap Kāinga Ora's NZ$60 million first-home grant programme and redirect the money towards social housing as part of the 2024 Budget. On 1 July 2024, Kāinga Ora CEO Andrew McKenzie resigned due to disagreements with the Government's overhaul of the housing agency including reducing its scale and accountabilities.

In mid July 2024, RNZ reported that 14 state housing tenancies had been revoked in the past three months due to behavioural issues or persistent rent arrears. In addition, 80 Section 55A formal warning notices had been issued to tenants for disruptive behaviour over the past three months, compared to 13 warnings for the same period in 2023. Housing Minister Bishop praised the increase in disciplinary actions against unruly tenants, saying that "there needs to be consequences for bad behaviour." Citizens Advice Bureau national advisor Sacha Green also confirmed that her group had seen a 24% increase in customers seeking eviction-related advice in 2024 and attributed problematic behaviour to various underlying issues including mental health, addiction and poverty.

On 25 September, Kāinga Ora announced a second round of job cuts, affecting 321 jobs. This was part of the National-led government's public sector job cuts in 2024.

Responsibility

Housing New Zealand was the New Zealand Government's principal advisor on housing with its primary role as a provider and manager for housing, specialising in New Zealanders in need of housing assistance.

In 1986, The Residential Tenancies Act was passed and The Ministry of Housing was formed. This entity was responsible for government housing policy, managing the State Housing Appeals Authority, holding and managing Tenancy bond monies, providing tenancy advice (Tenancy Services), delivering mediations and administration of The Tenancy Tribunal.

In 2004 this role was transferred to the Department of Building and Housing, and then in 2012 it was again transferred to the Ministry of Business, Innovation and Employment. In 2019 the Ministry of Housing held the role.

In April 2014 the Ministry of Social Development took over the assessment of housing needs to determine who was entitled to social housing and their rent subsidy entitlement.

Kāinga Ora is one of New Zealand's largest providers of housing, owning and maintaining almost 69,000 properties housing approximately 200,000 people. It estimates the assets it is responsible for to be worth around 40 Billion dollars. It also maintains a focus on urban development, having delivered approximately 7,000 homes since its formation, and plans to deliver a further 40,000 in coming years.

Kāinga Ora works closely with both the Ministry of Social Development and the Ministry of Housing and Urban Development with Kāinga Ora's main responsibilities in relation to MSD and HUD being placing people from the Housing Register into homes, as well as delivering more public, transitional, and affordable housing.

Management

Ministers responsible

The shareholding ministers of all Housing New Zealand subsidiaries are the Minister of Housing and the Minister of Finance.

The Minister of Housing/and Urban Development

• The Hon. Mark Gosche (2001–2003)
• The Hon. Steve Maharey (2003–2007)
• The Hon. Maryan Street (2007–2008)
• The Hon. Phil Heatley (2008–2013)
• The Hon. Nick Smith (2013–2014)
• The Hon. Paula Bennett (2014–2016)
• The Hon. Amy Adams (2016–2017)
• The Hon. Phil Twyford (2017–2019)
• The Hon. Megan Woods (2019–2023)
• The Hon. Chris Bishop (2023–present)

Associate Minister of Housing (Social Housing)

• The Hon. Kris Faafoi (2019–2020)
• The Hon. Poto Williams (2020–2022)
• The Hon. Tama Potaka (2023–present)

Associate Minister of Housing and Urban Development/Minister for Building and Construction

• The Hon. Jenny Salesa (2017–2019)

Associate Minister of Housing (Maori)

• The Hon. Nanaia Mahuta (2019–2020)
• The Hon. Peeni Henare (2020–2023)

Associate Minister of Housing (Homelessness)

• The Hon. Marama Davidson (2020–2023)

The Minister of Finance

• The Hon. Michael Cullen (2001–2008)
• The Rt. Hon. Bill English (2008–2016)
• The Hon. Steven Joyce (2016–2017)
• The Hon. Grant Robertson (2017–2023)
• The Hon. Nicola Willis (2023–present)

Board

Chairpersons

• Roger Bonifant (2001–2004)
• Patrick Snedden (2005–2010)
• Alan Jackson (2011–2012)
• Allan Freeth (2013–2014)
• Adrienne Young-Cooper (2014–2019)
• Simon Moutter (2024–present)

Senior management

The Kāinga Ora Leadership Team at 23 July 2021 was as follows.

Chief executives

• Michael Lennon (2001–2003)
• Helen Fulcher (2003–2006)
• Lesley McTurk (2006–2012)
• Glen Sowry (2013–2016)
• Andrew McKenzie (2016–present)

Controversies

Arena Williams advertisement

In November 2021, Kāinga Ora drew controversy after Newshub and Radio New Zealand reported that the agency had used Labour Party candidate Arena Williams in a taxpayer funded advertisement in 2020, compromising its political neutrality. Kāinga Ora drew criticism from Housing Minister Megan Woods and National Party Nicola Willis on the grounds of professionalism and compromising its political neutrality. Woods subsequently reported the agency to the Public Service Commission. The National Party called for an investigation into Kāinga Ora, alleging a cover up and "culture of deceit."

Procurement policies

In December 2024, Kāinga Ora was criticised by Associate Agriculture Minister Mark Patterson for excluding woollen products from its procurement policies in favour of nylon products due to its durability and lower cost.

References

1. ^ "Housing New Zealand". www.govt.nz. New Zealand Government. Retrieved 22 July 2017.
2. "Annual Report" (PDF). 30 June 2023.
3. ^ "Our Structure". Käinga Ora. Retrieved 9 October 2024.
4. "Housing New Zealand: Home". Kāinga Ora – Homes and Communities. Retrieved 11 January 2020.
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23. "Who we are :: Kāinga Ora – Homes and Communities". kaingaora.govt.nz. Retrieved 20 June 2023.
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25. ^ "New Zealand Cabinet Ministers 2004". decisionmaker.co.nz. Decision Maker. Retrieved 22 July 2017.
26. "Full Cabinet list". Stuff.co.nz. 31 October 2007. Retrieved 22 July 2017.
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29. "Hon Dr Nick Smith". parliament.govt.nz. New Zealand Government. Archived from the original on 23 January 2019. Retrieved 22 July 2017.
30. ^ "Cabinet reshuffle: List of ministers". Stuff.co.nz. 22 January 2013. Retrieved 22 July 2017.
31. "Hon Paula Bennett". parliament.nz. Parliament of New Zealand. Retrieved 22 July 2017.
32. ^ Bramwell, Chris (18 December 2016). "English names new Cabinet line-up". Radio New Zealand. Retrieved 22 July 2017.
33. ^ "Ministerial List". Department of the Prime Minister and Cabinet. Retrieved 26 October 2017.
34. "PM takes housing off Phil Twyford in first major reshuffle". Stuff.co.nz. 27 June 2019. Retrieved 27 June 2019.
35. ^ Ministerial List – 22 July 2020
36. ^ "Ministerial List Announcement 2 November 2020" (PDF).
37. "Housing New Zealand Annual Report 2005-2006" (PDF). hnzc.co.nz. Housing New Zealand Corporation. Retrieved 22 July 2017.
38. "Housing New Zealand Annual Report 2009-2010" (PDF). hnzc.co.nz. Housing New Zealand Corporation. Retrieved 22 July 2017.
39. ^ "Housing New Zealand Annual Report 2011-2012" (PDF). hnzc.co.nz. Housing New Zealand Corporation. Retrieved 22 July 2017.
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41. "Matt Crockett takes over as CEO of Kāinga Ora". KM Business Information NZ. 9 October 2024. Retrieved 9 October 2024.
42. "Housing NZ chief resigns". TVNZ. 16 June 2006. Retrieved 22 July 2017.
43. "5. Housing New Zealand Corporation—Treaty of Waitangi". Parliament of New Zealand. 7 October 2004. Retrieved 22 July 2017.
44. "Housing New Zealand Annual Report 2007-2008" (PDF). hnzc.co,nz. Housing New Zealand Corporation. Retrieved 22 July 2017.
45. Rutherford, Hamish (2 December 2015). "Housing NZ boss set for big pay rise as CEO of Metlifecare next year". stuff.co.nz. Stuff Business Day. Retrieved 22 July 2017.
46. "Andrew McKenzie appointed as new CEO of Housing New Zealand". Housing New Zealand Media. 16 June 2016. Retrieved 22 July 2017.
47. O'Brien, Tova (10 November 2021). "Kāinga Ora hid the fact it was using Labour candidate Arena Williams in taxpayer-funded advertising". Newshub. Archived from the original on 11 November 2021. Retrieved 12 November 2021.
48. ^ "National Party wants investigation into Kāinga Ora". Radio New Zealand. 11 November 2021. Archived from the original on 11 November 2021. Retrieved 12 November 2021.
49. Lynch, Jenna (11 November 2021). "Housing Minister Megan Woods dobs Kāinga Ora in to public service watchdog over cover-up". Newshub. Archived from the original on 11 November 2021. Retrieved 12 November 2021.
50. "'Beyond disappointing". RNZ. 4 December 2024. Archived from the original on 4 December 2024. Retrieved 13 December 2024.

External links

• Official website

• Welfare in New Zealand
• New Zealand Crown agents
• Public housing
• Housing in New Zealand
• Public housing in New Zealand