Supplementary estimates of appropriations

Vote Building and Housing - Supplementary Estimates 2018/19

Formats and related files

Note 83

From the Estimates of Appropriations 2019/20 in Budget 2019, Vote Building and Housing was renamed to Vote Building and Construction.

Details of Appropriations and Capital Injections#

Annual Appropriations and Forecast Permanent Appropriations#

  2018/19
Titles and Scopes of Appropriations by Appropriation Type Estimates
Budget
$000
Supplementary
Estimates
Budget
$000
Total
Budget
$000

Departmental Output Expenses

     

Administering the Legacy Social Housing Fund (M96)

This appropriation is limited to the administration costs of the Legacy Social Housing Fund.
600 (523) 77

Building Regulation and Control (M9)

This appropriation is limited to activities associated with the setting of performance standards for buildings and the design and delivery of regulatory schemes and other initiatives to help ensure those standards are met.
28,954 - 28,954

Community Housing Regulatory Authority (M96)

This appropriation is limited to the administration of the Community Housing Regulatory Authority.
700 (379) 321

Establishment of the Ministry of Housing and Urban Development (M96)

This appropriation is limited to the establishment of the Ministry of Housing and Urban Development.
- 400 400

Greater Christchurch Recovery (M85)

This appropriation is limited to the provision of services to residents of the greater Christchurch area affected by the Canterbury earthquakes to support the residential rebuild.
3,640 5,900 9,540

KiwiBuild Unit (M96)

This appropriation is limited to activities associated with the facilitation and implementation of the KiwiBuild Programme.
7,697 (1,916) 5,781

Occupational Licensing (M9)

This appropriation is limited to the development, implementation and maintenance of the registration and licensing regimes for building practitioners and electrical workers.
9,546 2,066 11,612

Redevelopment of Surplus Crown Land (M96)

This appropriation is limited to activities associated with the facilitation of Crown land redevelopment.
2,503 (1,079) 1,424

Residential Advisory Services (M85)

This appropriation is limited to the provision of insurance-related broker and advisory services to homeowners affected by a civil emergency to support their residential rebuild.
- 504 504

Residential Tenancy and Unit Title Services (M96)

This appropriation is limited to residential tenancy and unit title dispute resolution services, information, education, advice and compliance and enforcement activities; administration and investment of residential tenancy bond monies; provision of administrative support to the State Housing Appeals Authority.
35,095 (597) 34,498

Special Housing Areas (M96)

This appropriation is limited to the costs of providing resource consenting processes in Special Housing Areas where a Special Housing Area is declared outside of a Housing Accord.
3,000 (3,000) -

Weathertight Services (M9)

This appropriation is limited to assessing the eligibility of weathertight homes claims; independent technical assessment of claims, including reports on actual and probable damage with estimated costs of repair; administration of the financial assistance package; claim management until repair or claim lodged with the Weathertight Tribunal; provision of mediation services; and advice, information and education to support more informed consumer decisions.
9,350 (150) 9,200

Total Departmental Output Expenses

101,085 1,226 102,311

Non-Departmental Output Expenses

     

HNZC Housing Support Services (M96)

This appropriation is limited to housing related services from Housing New Zealand Corporation including home ownership initiatives and Healthy Housing.
11,698 (9,350) 2,348

KiwiBuild Operations (M96)

This appropriation is limited to the operating expenses incurred in relation to the acquisition and development of KiwiBuild dwellings.
5,000 (5,000) -

Management of Crown Properties held under the Housing Act 1955 (M96)

This appropriation is limited to the administration and management of Crown owned properties held under the Housing Act 1955.
1,395 (1,392) 3

Total Non-Departmental Output Expenses

18,093 (15,742) 2,351

Benefits or Related Expenses

     

KiwiSaver HomeStart grant (M96)

This appropriation is limited to KiwiSaver HomeStart grants for people who meet the required eligibility criteria.
106,120 (83,699) 22,421

Total Benefits or Related Expenses

106,120 (83,699) 22,421

Non-Departmental Other Expenses

     

Housing Assistance (M96)

This appropriation is limited to payments made to Housing New Zealand Corporation and other mortgage providers to compensate for the difference between the cost of funds and the rate at which funds are lent, and provide write-offs for loans.
1,159 (869) 290

Payments in respect of the Weathertight Services Loan Guarantees PLA (M9)

This appropriation is limited to the payments to banks under the Weathertight Services Financial Assistance Package: Loan Guarantee scheme as authorised under section 65ZG of the Public Finance Act 1989.
1,700 - 1,700

Remediation of Facades and Parapets of Unreinforced Masonry Buildings in at risk areas (M9)

This appropriation is limited to the partial remediation of street-facing facades and parapets of unreinforced masonry buildings in at risk areas.
- 2,838 2,838

Social Housing Provider Development (M96)

This appropriation is limited to providing support to third party providers of social and/or affordable housing services.
4,000 (2,200) 1,800

Unwind of Discount Rate Used in the Present Value Calculation of Direct Payments Under the Weathertight Homes Financial Assistance Package (M9)

This appropriation is limited to the expense incurred in unwinding the discount rate used in the present value calculation of the Weathertight Homes Financial Assistance Package liability as the liability nears settlement.
1,659 - 1,659

Total Non-Departmental Other Expenses

8,518 (231) 8,287

Multi-Category Expenses and Capital Expenditure

     

Policy Advice and Related Outputs MCA (M9)

The overarching purpose of this appropriation is to provide policy advice and other support to Ministers in discharging their policy decision-making and other portfolio responsibilities.
16,725 (7,487) 9,238

Departmental Output Expenses

     

Policy Advice - Building and Housing

This category is limited to advice (including second opinion advice and contributions to policy advice led by other agencies) to support decision making by Ministers on government policy matters relating to building and housing including social housing.
16,465 (7,301) 9,164

Related Services to Ministers - Building and Housing

This category is limited to the provision of support, information and services to Ministers to enable them to discharge their portfolio (other than policy decision-making) responsibilities on matters relating to building and housing including social housing.
260 (186) 74

Temporary Accommodation Services MCA (M96)

The single overarching purpose of this appropriation is to coordinate and provide temporary accommodation to people displaced by a civil emergency.
1,775 850 2,625

Departmental Output Expenses

     

Readiness, Response and Recovery

This category is limited to temporary accommodation coordination, contingency planning, civil defence sector engagement and event-specific civil emergency temporary accommodation service operations.
1,000 - 1,000

Non-Departmental Output Expenses

     

Temporary Accommodation Housing Initiatives - Operations

This category is limited to the operating expenses incurred on temporary accommodation supply initiatives.
500 - 500

Non-Departmental Other Expenses

     

Temporary Accommodation Housing Initiatives - Depreciation

This category is limited to depreciation expenses associated with temporary accommodation supply.
275 50 325

Non-Departmental Capital Expenditure

     

Temporary Accommodation Housing Initiatives - Capital

This category is limited to procuring and purchasing temporary accommodation.
- 800 800

Total Multi-Category Expenses and Capital Expenditure

18,500 (6,637) 11,863

Total Annual Appropriations and Forecast Permanent Appropriations

252,316 (105,083) 147,233

Multi-Year Appropriations#

Type, Title, Scope and Period of Appropriations Appropriations, Adjustments and Use $000

Departmental Output Expenses

   

Tenant Health and Safety Information (M96)

This appropriation is limited to providing information to increase tenant health and safety in residential rental properties.

Commences: 01 July 2015

Expires: 30 June 2020
Original Appropriation 2,740
Adjustments to 2017/18 -
Adjustments for 2018/19 -
Adjusted Appropriation 2,740
Actual to 2017/18 Year End 2,099
Estimated Actual for 2018/19 641
Estimate for 2019/20 -
Estimated Appropriation Remaining -

Non-Departmental Output Expenses

   

KiwiBuild Housing (M96)

This appropriation is limited to the acquisition, construction and provision of KiwiBuild housing.

Commences: 01 April 2018

Expires: 30 June 2022
Original Appropriation 210,000
Adjustments to 2017/18 -
Adjustments for 2018/19 (209,919)
Adjusted Appropriation 81
Actual to 2017/18 Year End -
Estimated Actual for 2018/19 81
Estimate for 2019/20 -
Estimated Appropriation Remaining -

Non-Departmental Capital Expenditure

   

Housing Infrastructure Fund Loans (M96)

This appropriation is limited to interest-free loans from the Housing Infrastructure Fund of a duration of ten years or under to Territorial Local Authorities to finance the infrastructure needed to unlock residential development.

Commences: 01 July 2018

Expires: 30 June 2023
Original Appropriation 176
Adjustments to 2017/18 -
Adjustments for 2018/19 -
Adjusted Appropriation 176
Actual to 2017/18 Year End -
Estimated Actual for 2018/19 176
Estimate for 2019/20 -
Estimated Appropriation Remaining -

KiwiBuild Capital (M96)

This appropriation is limited to capital for KiwiBuild housing.

Commences: 30 June 2018

Expires: 30 June 2022
Original Appropriation 1,865,755
Adjustments to 2017/18 -
Adjustments for 2018/19 (1,865,755)
Adjusted Appropriation -
Actual to 2017/18 Year End -
Estimated Actual for 2018/19 -
Estimate for 2019/20 -
Estimated Appropriation Remaining -

Vacant or Underutilised Crown Land Programme (M96)

This appropriation is limited to the Crown's contribution to the development of housing in selected locations.

Commences: 01 July 2017

Expires: 30 June 2022
Original Appropriation 167,104
Adjustments to 2017/18 51,050
Adjustments for 2018/19 (55,354)
Adjusted Appropriation 162,800
Actual to 2017/18 Year End 162,800
Estimated Actual for 2018/19 -
Estimate for 2019/20 -
Estimated Appropriation Remaining -

Total Annual Appropriations and Forecast Permanent Appropriations and Multi-Year Appropriations#

  2018/19
  Estimates
Budget
$000
Supplementary
Estimates
Budget
$000
Total
Budget
$000
Total Annual Appropriations and Forecast Permanent Appropriations 252,316 (105,083) 147,233
Total Forecast MYA Departmental Output Expenses 614 27 641
Total Forecast MYA Non-Departmental Output Expenses 210,000 (209,919) 81
Total Forecast MYA Non-Departmental Capital Expenditure 270,000 (269,824) 176

Total Annual Appropriations and Forecast Permanent Appropriations and Multi-Year Appropriations

732,930 (584,799) 148,131

Supporting Information#

Part 1 - Vote as a Whole#

Summary of Financial Activity
  2018/19
    Supplementary Estimates  
  Estimates
$000
Departmental
Transactions
$000
Non-Departmental
Transactions
$000
Total
Transactions
$000
Total
$000

Appropriations

         
Output Expenses 329,792 1,253 (225,661) (224,408) 105,384
Benefits or Related Expenses 106,120 N/A (83,699) (83,699) 22,421
Borrowing Expenses - - - - -
Other Expenses 8,518 - (231) (231) 8,287
Capital Expenditure 270,000 - (269,824) (269,824) 176
Intelligence and Security Department Expenses and Capital Expenditure - - N/A - -
Multi-Category Expenses and Capital Expenditure (MCA)          
Output Expenses 18,225 (7,487) - (7,487) 10,738
Other Expenses 275 - 50 50 325
Capital Expenditure - N/A 800 800 800

Total Appropriations

732,930 (6,234) (578,565) (584,799) 148,131

Crown Revenue and Capital Receipts

         
Tax Revenue - N/A - - -
Non-Tax Revenue 214,300 N/A (210,000) (210,000) 4,300
Capital Receipts 13,330 N/A (13,330) (13,330) -

Total Crown Revenue and Capital Receipts

227,630 N/A (223,330) (223,330) 4,300

Part 2 - Details of Departmental Appropriations#

2.1 - Departmental Output Expenses#

Administering the Legacy Social Housing Fund (M96)
Scope of Appropriation
This appropriation is limited to the administration costs of the Legacy Social Housing Fund.
Expenses and Revenue
  2018/19
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation 600 (523) 77
Revenue from the Crown 600 (523) 77
Revenue from Others - - -
Reasons for Change in Appropriation

This appropriation decreased by $523,000 to $77,000 for 2018/19 due to the transfer of this appropriation to the new Vote Housing and Urban Development. The remaining balance of $77,000 reflects the activity administered by Ministry of Business, Innovation and Employment (MBIE) before the transfer.

Community Housing Regulatory Authority (M96)
Scope of Appropriation
This appropriation is limited to the administration of the Community Housing Regulatory Authority.
Expenses and Revenue
  2018/19
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation 700 (379) 321
Revenue from the Crown 700 (379) 321
Revenue from Others - - -
Reasons for Change in Appropriation

This appropriation decreased by $379,000 to $321,000 for 2018/19 due to the transfer of $381,000 from this appropriation to the new Vote Housing and Urban Development. This was partially offset by a $2,000 increase to assist with the replacement of the Ministry of Business, Innovation and Employment's existing payroll system to meet its legislative requirements under the Holidays Act 2003 and have a payroll system that aligns with the Government's cloud-first policy. The remaining balance of $321,000 reflects the activity administered by the Ministry of Business, Innovation and Employment before the transfer.

Establishment of the Ministry of Housing and Urban Development (M96)
Scope of Appropriation
This appropriation is limited to the establishment of the Ministry of Housing and Urban Development.
Expenses and Revenue
  2018/19
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation - 400 400
Revenue from the Crown - 400 400
Revenue from Others - - -
 
What is Intended to be Achieved with this Appropriation

This appropriation is intended to establish the Ministry of Housing and Urban Development.

How Performance will be Assessed and End of Year Reporting Requirements
  2018/19
Performance Measures Estimates
Standard
Supplementary
Estimates
Standard
Total
Standard

Establish new Ministry of Housing and Urban Development

- New measure 1 October 2018
 
End of Year Performance Reporting

Performance information for this appropriation will be reported by the Ministry of Business, Innovation and Employment in its annual report.

 

Reasons for Change in Appropriation

This appropriation was established during 2018/19 to provide funding for the establishment of the new Ministry of Housing and Urban Development prior to the establishment of Vote Housing and Urban Development with effect from 1 October 2019.

Greater Christchurch Recovery (M85)
Scope of Appropriation
This appropriation is limited to the provision of services to residents of the greater Christchurch area affected by the Canterbury earthquakes to support the residential rebuild.
Expenses and Revenue
  2018/19
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation 3,640 5,900 9,540
Revenue from the Crown 3,640 200 3,840
Revenue from Others - 5,700 5,700
Reasons for Change in Appropriation

This appropriation increased by $5.900 million to $9.540 million for 2018/19 due to:

  • funding of $6 million to trial an integrated operating model to streamline the claims settlement process for claimants and reduce administrative costs for insurers, and
  • $1.700 million adjustment to cover the costs arising from the Internal Dispute Resolution Services (IDRS) activities that the Greater Christchurch Claims Resolution Service (GCCRS) team are expected to incur.

These increases are partially offset by a $1.800 million transfer to Vote Courts to support the Canterbury Earthquakes Insurance Tribunal.

KiwiBuild Unit (M96)
Scope of Appropriation
This appropriation is limited to activities associated with the facilitation and implementation of the KiwiBuild Programme.
Expenses and Revenue
  2018/19
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation 7,697 (1,916) 5,781
Revenue from the Crown 7,697 (1,916) 5,781
Revenue from Others - - -
How Performance will be Assessed and End of Year Reporting Requirements
  2018/19
Performance Measures Estimates
Standard
Supplementary
Estimates
Standard
Total
Standard

Number of greenfield and urban regeneration projects investigated, or due diligence completed

5 0 0
Reasons for Change in Appropriation

This appropriation decreased by $1.916 million to $5.781 million in 2018/19 due to the transfer of $3.569 million in 2018/19 to the new Vote Housing and Urban Development. This was partially offset by a transfer of $1.653 million from 2017/18 to 2018/19 to support staff recruitment for the KiwiBuild Unit. The remaining balance of $5.781 million reflects the activity administered by the Ministry of Business, Innovation and Employment before the transfer.

Occupational Licensing (M9)
Scope of Appropriation
This appropriation is limited to the development, implementation and maintenance of the registration and licensing regimes for building practitioners and electrical workers.
Expenses and Revenue
  2018/19
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation 9,546 2,066 11,612
Revenue from the Crown 691 8 699
Revenue from Others 8,433 2,058 10,491
Reasons for Change in Appropriation

This appropriation increased by $2.066 million to $11.612 million in 2018/19 due to:

  • an additional $2.058 million from increased electrical worker fees and licensed building practitioner fees and levy, reflecting amendments to the Electricity (Safety) Regulations 2010 and the Building Practitioners (Licensing Fees and Levy) Regulations 2010, and
  • $8,000 increase in Budget 2019 to assist with the replacement of MBIE's existing payroll system to meet its legislative requirements under the Holidays Act 2003 and have a payroll system that aligns with the Government's cloud-first policy.
Redevelopment of Surplus Crown Land (M96)
Scope of Appropriation
This appropriation is limited to activities associated with the facilitation of Crown land redevelopment.
Expenses and Revenue
  2018/19
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation 2,503 (1,079) 1,424
Revenue from the Crown 2,503 (1,079) 1,424
Revenue from Others - - -
Reasons for Change in Appropriation

This appropriation decreased by $1.079 million to $1.424 million in 2018/19 due to a decrease of $1.579 million related to the transfer of this appropriation to the new Vote Housing and Urban Development. This was partially offset by an increase of $500,000 from 2017/18 related to fewer purchases of land in that year. The remaining balance of $1.424 million reflects the activity administered by the Ministry of Business, Innovation and Employment before the transfer.

Residential Advisory Services (M85)
Scope of Appropriation
This appropriation is limited to the provision of insurance-related broker and advisory services to homeowners affected by a civil emergency to support their residential rebuild.
Expenses and Revenue
  2018/19
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation - 504 504
Revenue from the Crown - 504 504
Revenue from Others - - -
 
What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve access to insurance-related broker and advisory services to help progress residential rebuild following a civil emergency.

How Performance will be Assessed and End of Year Reporting Requirements
  2018/19
Performance Measures Estimates
Standard
Supplementary
Estimates
Standard
Total
Standard

Users satisfied or very satisfied with the residential advisory service

- New measure 75%

 

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Ministry of Business, Innovation and Employment in its annual report.

Current and Past Policy Initiatives
Policy Initiative Year of
First
Impact
2018/19
Final Budgeted
$000
2019/20
Budget
$000
2020/21
Estimated
$000
2021/22
Estimated
$000
2022/23
Estimated
$000

Current Government

           
Residential Rebuild 2018/19 667 - - - -
Increase of the Residential Advisory Services 2018/19 1,833 - - - -
MBIE Payroll System 2018/19 4 14 66 66 66
Reasons for Change in Appropriation

This appropriation was established in 2018/19 to allow for the Residential Advisory Services with authorised funding of $2.500 million and a further increase of $4,000 assist with the replacement of the Ministry of Business, Innovation and Employment's existing payroll system to meet its legislative requirements under the Holidays Act 2003 and have a payroll system that aligns with the Government's cloud-first policy. This was offset by a transfer of $2 million from the Residential Advisory Services to the Greater Christchurch Recovery appropriation to support a trial of an integrated operating model to streamline the claims settlement process for claimants.

Residential Tenancy and Unit Title Services (M96)
Scope of Appropriation
This appropriation is limited to residential tenancy and unit title dispute resolution services, information, education, advice and compliance and enforcement activities; administration and investment of residential tenancy bond monies; provision of administrative support to the State Housing Appeals Authority.
Expenses and Revenue
  2018/19
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation 35,095 (597) 34,498
Revenue from the Crown 14,493 (997) 13,496
Revenue from Others 20,602 400 21,002
 
Reasons for Change in Appropriation

This appropriation decreased by $597,000 to $34.498 million in 2018/19 due to a $1 million transfer of funding to 2019/20 reflecting delays caused by the undertaking of public consultation and decisions on the content of the Healthy Homes Guarantee Act 2017 work programme. This decrease is partially offset by an increase of $400,000 to allow for the increased shared tenancy adjudication module costs, and an increase of $3,000 to assist with the replacement of the Ministry of Business, Innovation and Employment's existing payroll system to meet its legislative requirements under the Holidays Act 2003 and have a payroll system that aligns with the Government's cloud-first policy.

Special Housing Areas (M96)
Scope of Appropriation
This appropriation is limited to the costs of providing resource consenting processes in Special Housing Areas where a Special Housing Area is declared outside of a Housing Accord.
Expenses and Revenue
  2018/19
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation 3,000 (3,000) -
Revenue from the Crown - - -
Revenue from Others 3,000 (3,000) -
Reasons for Change in Appropriation

This appropriation decreased by $3 million to nil for 2018/19 due to the transfer of $3 million from this appropriation to the new Vote Housing and Urban Development.

Weathertight Services (M9)
Scope of Appropriation
This appropriation is limited to assessing the eligibility of weathertight homes claims; independent technical assessment of claims, including reports on actual and probable damage with estimated costs of repair; administration of the financial assistance package; claim management until repair or claim lodged with the Weathertight Tribunal; provision of mediation services; and advice, information and education to support more informed consumer decisions.
Expenses and Revenue
  2018/19
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation 9,350 (150) 9,200
Revenue from the Crown 9,350 (150) 9,200
Revenue from Others 113 - 113
How Performance will be Assessed and End of Year Reporting Requirements
  2018/19
Performance Measures Estimates
Standard
Supplementary
Estimates
Standard
Total
Standard

The number of homeowners who have repaired or have started repairing with the Financial Assistance Package since the beginning of the scheme

At least 3,400 Measure removed -
Reasons for Change in Appropriation

This appropriation decreased by $150,000 to $9.200 million in 2018/19 due to:

  • transfer of $1.700 million to the "Residential Advisory Services" appropriation
  • transfer of $600,000 to the "Temporary Accommodation Services" multi-category appropriation, and
  • transfer of $550,000 to the "Policy Advice - Building and Housing" category in the "Policy Advice and Related Outputs" multi-category appropriation to assist with the construction sector accord.

These decreases are partially offset by a transfer of $2.700 million from 2017/18 to 2018/19 to reflect the timing for a number of cases where the engagement and associated costs do not occur until after 30 June 2018.

Part 3 - Details of Non-Departmental Appropriations#

3.1 - Non-Departmental Output Expenses#

HNZC Housing Support Services (M96)
Scope of Appropriation
This appropriation is limited to housing related services from Housing New Zealand Corporation including home ownership initiatives and Healthy Housing.
Expenses
  2018/19
  Estimates
$000
Supplementary Estimates
$000
Total
$000
Total Appropriation 11,698 (9,350) 2,348
Reasons for Change in Appropriation

This appropriation decreased by $9.350 million to $2.348 million in 2018/19 due to the transfer of this appropriation to the new Vote Housing and Urban Development. The remaining balance of $2.348 million reflects the activity administered by the Ministry of Business, Innovation and Employment before the transfer.

KiwiBuild Housing (M96)
Scope of Appropriation and Expenses
Type, Title, Scope and Period of Appropriations Appropriations, Adjustments and Use $000

KiwiBuild Housing (M96)

This appropriation is limited to the acquisition, construction and provision of KiwiBuild housing.

Commences: 01 April 2018

Expires: 30 June 2022
Original Appropriation 210,000
Adjustments to 2017/18 -
Adjustments for 2018/19 (209,919)
Adjusted Appropriation 81
Actual to 2017/18 Year End -
Estimated Actual for 2018/19 81
Estimate for 2019/20 -
Estimated Appropriation Remaining -
 
How Performance will be Assessed and End of Year Reporting Requirements
  2018/19
Performance Measures Estimates
Standard
Supplementary
Estimates
Standard
Total
Standard

Progress towards 100,000 KiwiBuild affordable homes over 10 years

- New measure Achieved
Reasons for Change in Appropriation

This appropriation decreased by $209.919 million to $81,000 for 2018/19 due to the transfer of this appropriation to the new Vote Housing and Urban Development. The remaining balance of $81,000 reflects costs associated with the KiwiBuild Urban framework documentation and house typologies to be incurred by MBIE.

KiwiBuild Operations (M96)
Scope of Appropriation
This appropriation is limited to the operating expenses incurred in relation to the acquisition and development of KiwiBuild dwellings.
Expenses
  2018/19
  Estimates
$000
Supplementary Estimates
$000
Total
$000
Total Appropriation 5,000 (5,000) -
How Performance will be Assessed and End of Year Reporting Requirements
  2018/19
Performance Measures Estimates
Standard
Supplementary
Estimates
Standard
Total
Standard

Progress towards 100,000 KiwiBuild affordable homes over 10 years

- New measure Achieved
Reasons for Change in Appropriation

This appropriation decreased by $5 million to nil for 2018/19 due to the transfer of $5 from this appropriation to the new Vote Housing and Urban Development.

Management of Crown Properties held under the Housing Act 1955 (M96)
Scope of Appropriation
This appropriation is limited to the administration and management of Crown owned properties held under the Housing Act 1955.
Expenses
  2018/19
  Estimates
$000
Supplementary Estimates
$000
Total
$000
Total Appropriation 1,395 (1,392) 3
Reasons for Change in Appropriation

This appropriation decreased by $1.392 million to $3,000 in 2018/19 due to the transfer of this appropriation to the new Vote Housing and Urban Development. The remaining balance of $3,000 reflects the activity administered by the Ministry of Business, Innovation and Employment before the transfer.

KiwiSaver HomeStart grant (M96)
Scope of Appropriation
This appropriation is limited to KiwiSaver HomeStart grants for people who meet the required eligibility criteria.
Expenses
  2018/19
  Estimates
$000
Supplementary Estimates
$000
Total
$000
Total Appropriation 106,120 (83,699) 22,421
Reasons for Change in Appropriation

This appropriation decreased by $83.699 million to $22.421 million in 2018/19 due to the transfer of this appropriation to the new Vote Housing and Urban Development. The remaining balance of $22.421 million reflects the activity administered by the Ministry of Business, Innovation and Employment before the transfer.

3.4 - Non-Departmental Other Expenses#

Housing Assistance (M96)
Scope of Appropriation
This appropriation is limited to payments made to Housing New Zealand Corporation and other mortgage providers to compensate for the difference between the cost of funds and the rate at which funds are lent, and provide write-offs for loans.
Expenses
  2018/19
  Estimates
$000
Supplementary Estimates
$000
Total
$000
Total Appropriation 1,159 (869) 290
Reasons for Change in Appropriation

This appropriation decreased by $869,000 to $290,000 in 2018/19 due to the transfer of this appropriation to the new Vote Housing and Urban Development. The remaining balance of $290,000 reflects the activity administered by the Ministry of Business, Innovation and Employment before the transfer.

Remediation of Facades and Parapets of Unreinforced Masonry Buildings in at risk areas (M9)
Scope of Appropriation
This appropriation is limited to the partial remediation of street-facing facades and parapets of unreinforced masonry buildings in at risk areas.
Expenses
  2018/19
  Estimates
$000
Supplementary Estimates
$000
Total
$000
Total Appropriation - 2,838 2,838
 
What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the timely remediation and repair of buildings impacted by natural disasters.

End of Year Performance Reporting

An exemption was granted under s15D(2)(b)(iii) of the Public Finance Act 1989 as the amount of this annual appropriation for a non-departmental other expense is less than $5 million.

Reasons for Change in Appropriation

The increase in this appropriation of $2.838 million is due to constraints in completing the work and the need to extend the funding for the remediation of facades from 2017/18 to 2018/19.

Social Housing Provider Development (M96)
Scope of Appropriation
This appropriation is limited to providing support to third party providers of social and/or affordable housing services.
Expenses
  2018/19
  Estimates
$000
Supplementary Estimates
$000
Total
$000
Total Appropriation 4,000 (2,200) 1,800
Reasons for Change in Appropriation

This appropriation decreased by $2.200 million to $1.800 million in 2018/19 due to a decrease of $5.428 million relating to the transfer of this appropriation to the new Vote Housing and Urban Development. This was partially offset by an increase of $3.228 million relating to a transfer from Vote Social Housing to Vote Building and Housing. The remaining balance of $1.800 million reflects the activity administered by the Ministry of Business, Innovation and Employment before the transfer.

3.5 - Non-Departmental Capital Expenditure#

Housing Infrastructure Fund Loans (M96)
Scope of Appropriation and Expenses
Type, Title, Scope and Period of Appropriations Appropriations, Adjustments and Use $000

Housing Infrastructure Fund Loans (M96)

This appropriation is limited to interest-free loans from the Housing Infrastructure Fund of a duration of ten years or under to Territorial Local Authorities to finance the infrastructure needed to unlock residential development.

Commences: 01 July 2018

Expires: 30 June 2023
Original Appropriation 176
Adjustments to 2017/18 -
Adjustments for 2018/19 -
Adjusted Appropriation 176
Actual to 2017/18 Year End -
Estimated Actual for 2018/19 176
Estimate for 2019/20 -
Estimated Appropriation Remaining -
Reasons for Change in Appropriation

This appropriation was established in 2018/19 and was also transferred to the new Vote Housing and Urban Development in 2018/19. The remaining balance of $176,000 reflects the activity administered by the Ministry of Business, Innovation and Employment before the transfer.

KiwiBuild Capital (M96)
Scope of Appropriation and Expenses
Type, Title, Scope and Period of Appropriations Appropriations, Adjustments and Use $000

KiwiBuild Capital (M96)

This appropriation is limited to capital for KiwiBuild housing.

Commences: 30 June 2018

Expires: 30 June 2022
Original Appropriation 1,865,755
Adjustments to 2017/18 -
Adjustments for 2018/19 (1,865,755)
Adjusted Appropriation -
Actual to 2017/18 Year End -
Estimated Actual for 2018/19 -
Estimate for 2019/20 -
Estimated Appropriation Remaining -
How Performance will be Assessed and End of Year Reporting Requirements
  2018/19
Performance Measures Estimates
Standard
Supplementary
Estimates
Standard
Total
Standard

Progress towards 100,000 KiwiBuild affordable homes over 10 years

- New measure Achieved
Reasons for Change in Appropriation

This appropriation decreased by $1,865.755 million to nil for 2018/19 due to the transfer of $1,865.755 million from this appropriation to the new Vote Housing and Urban Development.

Part 4 - Details of Multi-Category Expenses and Capital Expenditure#

Multi-Category Expenses and Capital Expenditure#

Policy Advice and Related Outputs (M9)
Overarching Purpose Statement
The overarching purpose of this appropriation is to provide policy advice and other support to Ministers in discharging their policy decision-making and other portfolio responsibilities.
Scope of Appropriation
Departmental Output Expenses
Building and Construction Data and Analysis
This category is limited to research, analysis and dissemination of data on building and construction.
Policy Advice - Building and Housing
This category is limited to advice (including second opinion advice and contributions to policy advice led by other agencies) to support decision making by Ministers on government policy matters relating to building and housing including social housing.
Related Services to Ministers - Building and Housing
This category is limited to the provision of support, information and services to Ministers to enable them to discharge their portfolio (other than policy decision-making) responsibilities on matters relating to building and housing including social housing.
Expenses, Revenue and Capital Expenditure
  2018/19
  Estimates
$000
Supplementary Estimates
$000
Total
$000

Total Appropriation

16,725 (7,487) 9,238

Departmental Output Expenses

     
Policy Advice - Building and Housing 16,465 (7,301) 9,164
Related Services to Ministers - Building and Housing 260 (186) 74

Funding for Departmental Output Expenses

     

Revenue from the Crown

16,725 (7,515) 9,210
Policy Advice - Building and Housing 16,465 (7,329) 9,136
Related Services to Ministers - Building and Housing 260 (186) 74

Revenue from Others

- 28 28
Policy Advice - Building and Housing - 28 28
Reasons for Change in Appropriation

This appropriation decreased by $7.519 million to $9.206 million in 2018/19 due to the transfer of this appropriation to the new Vote Housing and Urban Development. The remaining balance reflects the activity administered by the Ministry of Business, Innovation and Employment after the transfer, including:

  • $550,000 transferred from the Weathertight Services appropriation to fund the construction sector accord, and
  • $4,000 increase to assist with the replacement of the Ministry of Business, Innovation and Employment's existing payroll system to meet its legislative requirements under the Holidays Act 2003 and have a payroll system that aligns with the Government's cloud-first.
Temporary Accommodation Services (M96)
Overarching Purpose Statement
The single overarching purpose of this appropriation is to coordinate and provide temporary accommodation to people displaced by a civil emergency.
Scope of Appropriation
Departmental Output Expenses
Readiness, Response and Recovery
This category is limited to temporary accommodation coordination, contingency planning, civil defence sector engagement and event-specific civil emergency temporary accommodation service operations.
Non-Departmental Output Expenses
Temporary Accommodation Housing Initiatives - Operations
This category is limited to the operating expenses incurred on temporary accommodation supply initiatives.
Non-Departmental Other Expenses
Temporary Accommodation Housing Initiatives - Depreciation
This category is limited to depreciation expenses associated with temporary accommodation supply.
Non-Departmental Capital Expenditure
Temporary Accommodation Housing Initiatives - Capital
This category is limited to procuring and purchasing temporary accommodation.
Expenses, Revenue and Capital Expenditure
  2018/19
  Estimates
$000
Supplementary Estimates
$000
Total
$000

Total Appropriation

1,775 850 2,625

Departmental Output Expenses

     
Readiness, Response and Recovery 1,000 - 1,000

Non-Departmental Output Expenses

     
Temporary Accommodation Housing Initiatives - Operations 500 - 500

Non-Departmental Other Expenses

     
Temporary Accommodation Housing Initiatives - Depreciation 275 50 325

Non-Departmental Capital Expenditure

     
Temporary Accommodation Housing Initiatives - Capital - 800 800

Funding for Departmental Output Expenses

     

Revenue from the Crown

1,000 - 1,000
Readiness, Response and Recovery 1,000 - 1,000
How Performance will be Assessed for this Appropriation
  2018/19
Assessment of Performance Estimates
Standard
Supplementary Estimates
Standard
Total
Standard

Percentage of users of the service who are satisfied or very satisfied

- New measure 75%

Percentage of service activations approved within 14 days of a civil emergency

90% Measure removed -
Reasons for Change in Appropriation

This appropriation increased by $850,000 to $2.625 million in 2018/19 due to:

  • $600,000 transfer from the Weathertight Services appropriation for additional portacabins to be built to effectively respond to small-scale emergencies, and
  • transfer of $250,000 from 2017/18 to 2018/19 as a result of a delay in the service support for displaced people following ex-tropical cyclone Fehi and Gita due to spending in Kaikoura and Edgecumbe.