OUR CONCERN
Everyone in New Zealand agrees housing is a problem. The media and political leaders like to call it a crisis. We have watched as government ‘declared war on drugs’ which actually translated to a declaration of war on the residential tenancy market. As “meth test” levels were pushed up and social housing tenants evicted to a private market, which burnt, and then onto the streets, investors pivoted (because they could) into the ‘short stay market’ while state and civic housing was closed.
War appears to have been declared, with property managers ending tenancies as often as tenants qualify for bond top ups and ‘first week signing fees”. House trading has become rife with existing stock simply revalued and ‘untaxed profits’ taken.
We have observed as private tenants on benefits gain accommodation and “TAS” payments but then fail to hand those to the landlord. They change payment arrangements with WINZ, beyond the control of the landlord.
Some are clearly well organised “tenant gangs” just attacking the system, while others are simply swept along in the fall out, becoming more and more fragile, to many ending in jail.
WHO ARE WE
The CDR group is a registered charity in New Zealand, a trust and a limited liability company. It was formed in 2020 to create the appropriate vehicle to work with government (civic and state) in social housing.
The group has been working through the process of gaining “Community Housing Provider” (CHP) status with Te Tūāpapa Kura Kāinga – Ministry of Housing and Urban Development (HUD) so it can access IRRS payments for tenants. We are aware that IRRS tenants are better off while the housing provider has better security of income.
WHY ARE WE SUBMITTING
Our interest in addressing the CCC 2021 LTP is as a Christchurch based charity, community group and company. We wear many hats for which the CCC has a mandate to provide assistance to deliver the best outcomes for our Christchurch community.
The CHP, Community Housing Provider program is new and designed by government to address an extensive range of housing issues. We know that CCC already understands this as they’ve moved the civic housing assets into OCHT, the cities second biggest rental provider.
We understand that our community needs ‘choice’. We have three mobile phone networks, at least three fibre networks, public, private and faith based schools, many supermarket chains, many real estate brands.
Social housing also needs choice. We understand that many tenants are tired of living with Housing New Zealand or OCHT as their landlord. We hold the view that it is important to “rise up” more local social housing providers in Christchurch.
The city council has a massive amount of public civic resources at its disposal. To much of it doing little.
CCC can partner with organisations to add credibility, stability and security.
We are interested to see CCC bring more of its resources to focus on social housing. We regard that it has done an amazing job with OCHT and as a result has produced a massive amount of knowledge and skill that it should share with interested Christchurch parties.
We took part in the Draft Social Housing Strategy with a submission and hearing presentation. We consider that the basic foundations to work with more players in the Christchurch market are now well in place.
WHAT WE WANT
We ask that CCC make formal steps to bring every resource it has, to helping anyone who steps up to the mic. We accept that CCC has supported some fringe projects, some less than ideal, instructed by elected members and has cost rate payers against good advice. We hold the view that elected members have become frustrated.
We have seen that staff will, and do, work with interested groups, however as part of the long term strategy for the next decade we would like to see more of that work become formal policy with resources directed to the attention of social housing.
Internally we would like to see a formal declaration that social housing is very much the business of CCC. It is CCC business to take a leadership role and use its massive, $13b dollars of resources and networks to leverage better social outcomes in housing.
Some will claim this is the role of the state. It is, but it’s also a civic responsibility.
The investment market has made a pivot into short stay. We consider that the property management market is also going to have to pivot. CHPs with a much greater level of tenant accountability is where that pivot is going.
CCC has many resources that could be focused more on strengthening communities with more housing support. CHPs will need assistance to grow programs, make networks, explain business cases and much more. Skills that CCC has in spades that it can simply share with its community.
Social housing has not been “on budget” but adding strength to communities is very much on budget. We’ve seen the developer community receive millions in development contribution policy, which has come with the obvious management overhead, and that is just one example.
We see culture receive hundreds of millions, massive amounts of it simply the target of tourists. We’ve seen huge upgrades to travel resources, $53 million just for a single bus exchange. Almost one hundred million on a library, (while not civic) half a billion on conventions, almost half a billion to go on a place to play rugby and attend the odd concert, $34 million coming on a stage, $31.3 million on a car park, the list goes on.
Mean while our people have been fighting a tenancy war, which our entire community is losing.
Community Housing Providers are going to need more support with services to wrap around tenants. That too is a state role, but we must have the massive power of civic resource taking a lead just as civic lead us through the earthquakes, as much as central government trumpeted that it was taking the lead.
CCC MUST TRADE
Finally, we believe that CCC ‘must trade’. We understand the local political agenda not to sell assets. We understand the desire to have a massive asset holding because of the power it gives us as a community. However, maintaining at asset doesn’t mean holding on to every car dad ever purchased, it means holding onto the value, the wealth. It also means using the legislative capacity civic has to acquire resources the whole community needs. For example, to us it means if civic needs to sell $50 million dollars of land to give it cash to build $50 million dollars of buildings so it can gain $120 million dollars of asset then that’s a ‘trade’. It must also work with partners. If gifting $500,000 of land, for a dollar, so a community group will build a pool then giving $5 million dollars of land so a charity can leverage security to borrow and build a housing estate is equally a trade.
It’s a civic and state role to use innovation thinking to repair a broken market, right now the housing market is broken for tenants on the bottom rungs. Help us fix it.