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Vote Social Housing - Social Development and Housing Sector - Estimates 2017/2018

APPROPRIATION MINISTER(S): Minister for Social Housing (M37)

APPROPRIATION ADMINISTRATOR: Ministry of Social Development

RESPONSIBLE MINISTER FOR MINISTRY OF SOCIAL DEVELOPMENT: Minister for Social Development

Overview of the Vote

Vote Social Housing is a new Vote established with effect from 1 July 2017. It contains social and emergency housing-related appropriations that were previously in Vote Building and Housing and Vote Social Development.

The Minister for Social Housing is responsible for appropriations in this Vote for the 2017/18 financial year covering the following:

  • a total of nearly $1,218 million on Accommodation Assistance
  • a total of nearly $901 million on social housing purchasing
  • a total of over $51 million on social housing outcomes support
  • a total of nearly $49 million on the emergency housing response
  • a total of over $20 million on community group housing
  • a total of nearly $4 million on social housing provider development, and
  • a total of $600,000 on administering the legacy social housing fund.

Details of these appropriations are set out in Parts 2-4.

Details of Appropriations and Capital Injections

Annual and Permanent Appropriations

  2016/17 2017/18
Titles and Scopes of Appropriations by Appropriation Type Final
Budgeted
$000
Estimated
Actual
$000
Budget
$000

Departmental Output Expenses

     

Administering the Legacy Social Housing Fund (M37)

This appropriation is limited to the administration costs of the Legacy Social Housing Fund.
- - 600

Total Departmental Output Expenses

- - 600

Benefits or Related Expenses

     

Accommodation Assistance (M37)

This appropriation is limited to the Accommodation Supplement, Special Transfer Allowance, and Away From Home Allowance to cover accommodation costs, paid in accordance with the criteria set out in the Social Security Act 1964 and delegated legislation made under that Act.
- - 1,217,767

Total Benefits or Related Expenses

- - 1,217,767

Non-Departmental Other Expenses

     

Social Housing Provider Development (M37)

This appropriation is limited to providing support to third party providers of social and/or affordable housing services.
- - 3,926

Total Non-Departmental Other Expenses

- - 3,926

Multi-Category Expenses and Capital Expenditure

     

Community Group Housing MCA (M37)

The overarching purpose of this appropriation is to purchase housing services from Housing New Zealand Corporation and Community Group Housing providers to maintain the supply of tenanted Community Group Housing properties.
- - 20,010
Non-Departmental Output Expenses
     
Community Group Housing Market Rent Top-Up
This category is limited to the provision of funding to Housing New Zealand Corporation to pay the difference between the contracted rent with the Community Group Housing provider and market rent for the leased properties.
- - 10,106
Non-Departmental Other Expenses
     
Community Housing Rent Relief
This category is limited to the provision of a rent relief fund to Community Group Housing providers for the sole purpose of helping them meet their contracted rent payments.
- - 4,104
Non-Departmental Capital Expenditure
     
Acquisition and Improvement of Community Group Housing Properties
This category is limited to debt or equity in Housing New Zealand Corporation to acquire, modernise or reconfigure properties leased by Community Housing Providers.
- - 5,800

Emergency Housing MCA (M37)

The single overarching purpose of this appropriation is to fund the delivery of emergency housing places in New Zealand.
- - 48,544
Non-Departmental Output Expenses
     
Emergency Housing Services
This category is limited to payments to emergency housing providers on a per household basis to cover tenancy and property management; and services to support tenants in emergency housing to move into sustainable housing.
- - 21,935
Provision of Emergency Housing Places
This category is limited to supporting emergency housing providers to provide emergency housing places.
- - 26,609

Social Housing Outcomes Support MCA (M37)

The single overarching purpose of this appropriation is to operate the social housing register and associated interventions in such a way as to support more people with the greatest housing need into housing, and to move those who are capable of housing independence closer towards that.
- - 51,383
Departmental Output Expenses
     
Services to Support People to Access Accommodation
This category is limited to assessing and reviewing eligibility for social housing and income related rent, social housing register management and the accurate and timely payment of income related rent subsidies to the social housing provider.
- - 43,345
Non-Departmental Output Expenses
     
Services Related to Supporting Outcomes for those in need of or at risk of needing Social Housing
This category is limited to the provision of support services to those in need of social housing or those at risk of entering social housing.
- - 5,438
Non-Departmental Other Expenses
     
Housing Support Package
This category is limited to the provision of incentives, products and services to help households with lower housing need who are in, or seeking social housing, to access or retain alternative housing solutions.
- - 2,600

Social Housing Purchasing MCA (M37)

The single overarching purpose of this appropriation is to secure and purchase social housing tenancies for those who are eligible.
- - 900,851
Non-Departmental Output Expenses
     
Part Payment of Rent to Social Housing Providers
This category is limited to the part purchase of tenancies from social housing providers.
- - 900,451
Services Related to the Provision of Social Housing
This category is limited to the provision of services related to the provision of social housing by a social housing provider.
- - 400

Total Multi-Category Expenses and Capital Expenditure

- - 1,020,788

Total Annual and Permanent Appropriations

- - 2,243,081

Supporting Information

Part 1 - Vote as a Whole

1.1 - New Policy Initiatives

Policy Initiative Appropriation 2016/17
Final Budgeted
$000
2017/18
Budget
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
Changes to the Social Housing Allocation System

Ministry of Social Development - Capital Injection (M63)

750 - - - -
Developing an Integrated Social Investment and Purchasing Model for Social Housing

Social Housing Outcomes Support MCA (M37)

         
 
  • Services to Support People to Access Accommodation
8,605 17,488 13,835 11,285 10,932
 
Departmental Output Expenses
         
 

Ministry of Social Development - Capital Injection (M63)

1,000 - - - -
Family Incomes Package Accommodation Assistance (M37) - 87,559 361,583 380,296 399,723
 

Social Housing Purchasing MCA (M37)

         
 
  • Part Payment of Rent to Social Housing Providers
- (1,649) (6,183) (4,940) (4,940)
 
Non-Departmental Output Expense
         
Increasing the Supply of Social Housing in Auckland

Social Housing Purchasing MCA (M37)

         
 
  • Part Payment of Rent to Social Housing Providers
20,051 5,073 9,596 - -
 
Non-Departmental Output Expense
         
 
  • Support for the provision of Social Housing Supply
18,980 (26,150) 13,770 (16,890) -
 
Non-Departmental Other Expenses
         
Measures to Support More People in Emergency Housing

Emergency Housing MCA (M37)

         
 
  • Provision of Emergency Housing Places
9,028 14,942 14,878 15,651 16,465
 
  • Emergency Housing Services
14,624 21,935 21,935 21,935 21,935
 
Non-Departmental Output Expenses
         
 

Social Housing Outcomes Support MCA (M37)

         
 
  • Services to Support People to Access Accommodation
2,900 2,900 - - -
 
Departmental Output Expenses
         
Positive Pathways for People with a Corrections History

Social Housing Outcomes Support MCA (M37)

         
 
  • Services Related to Supporting Outcomes for those in need of or at risk of needing Social Housing
- 438 438 438 438
 
Non-Departmental Output Expenses
         
 

Social Housing Purchasing MCA (M37)

         
 
  • Part Payment of Rent to Social Housing Providers
- 673 2,015 3,513 5,145
 
Non-Departmental Output Expenses
         
Securing the Supply of Housing for Vulnerable People in Auckland

Social Housing Outcomes Support MCA (M37)

         
 
  • Services to Support People to Access Accommodation
3,352 - - - -
 
Departmental Output Expenses
         
Total Initiatives   79,290 123,209 431,867 411,238 449,698

1.2 - Trends in the Vote

Summary of Financial Activity

  2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21
  Actual
$000
Actual
$000
Actual
$000
Actual
$000
Final Budgeted
$000
Estimated
Actual
$000
Departmental
Transactions
Budget
$000
Non-
Departmental
Transactions
Budget
$000
Total
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000

Appropriations

                       
Output Expenses - - - 437 600 600 600 - 600 600 600 600
Benefits or Related Expenses 1,177,315 1,145,875 1,128,850 1,163,674 1,146,156 1,128,656 N/A 1,217,767 1,217,767 1,488,373 1,497,277 1,515,305
Borrowing Expenses - - - - - - - - - - - -
Other Expenses - - - 760 791 791 - 3,926 3,926 - - -
Capital Expenditure - - - - - - - - - - - -
Intelligence and Security Department Expenses and Capital Expenditure - - - - - - - N/A - - - -
Multi-Category Expenses and Capital Expenditure (MCA)                        
Output Expenses 610,846 660,012 723,591 795,384 942,085 942,085 43,345 964,939 1,008,284 1,078,214 1,139,782 1,197,108
Other Expenses - - - 5,917 60,184 60,184 - 6,704 6,704 46,614 6,704 23,594
Capital Expenditure - - - 5,800 5,800 5,800 N/A 5,800 5,800 5,800 5,800 5,800

Total Appropriations

1,788,161 1,805,887 1,852,441 1,971,972 2,155,616 2,138,116 43,945 2,199,136 2,243,081 2,619,601 2,650,163 2,742,407

Crown Revenue and Capital Receipts

                       
Tax Revenue - - - - - - N/A - - - - -
Non-Tax Revenue - - - - - - N/A - - - - -
Capital Receipts - - - - - - N/A - - - - -

Total Crown Revenue and Capital Receipts

- - - - - - N/A - - - - -

Note - where restructuring of the vote has occurred then, to the extent practicable, prior years information has been restated as if the restructuring had occurred before the beginning of the period covered. In this instance Total Appropriations for the Budgeted and Estimated Actual year may not equal Total Appropriations in the Details of Appropriations and Capital Injections.

Adjustments to the Summary of Financial Activity Table Due to Vote Restructuring

Establishment of Vote Social Housing from 1 July 2017

  2012/13
Adjustments
$000
2013/14
Adjustments
$000
2014/15
Adjustments
$000
2015/16
Adjustments
$000
2016/17
Final Budgeted
Adjustments
$000
2016/17
Estimated
Actual
Adjustments
$000

Appropriations

           
Output Expenses - - - 437 600 600
Benefits or Related Expenses 1,177,315 1,145,875 1,128,850 1,163,674 1,146,156 1,128,656
Borrowing Expenses - - - - - -
Other Expenses - - - 760 791 791
Capital Expenditure - - - - - -
Intelligence and Security Department Expenses and Capital Expenditure - - - - - -
Multi-Category Expenses and Capital Expenditure (MCA)            
   Output Expenses 610,846 660,012 723,591 795,384 942,085 942,085
   Other Expenses - - - 5,917 60,184 60,184
   Capital Expenditure - - - 5,800 5,800 5,800

Total Appropriations

1,788,161 1,805,887 1,852,441 1,971,972 2,155,616 2,138,116

Crown Revenue and Capital Receipts

           
Tax Revenue - - - - - -
Non-Tax Revenue - - - - - -
Capital Receipts - - - - - -

Total Crown Revenue and Capital Receipts

- - - - - -

1.3 - Analysis of Significant Trends

Output Expenses

The stable trend for the Departmental Output Expense relates to Administering the Legacy Social Housing Fund appropriation.

Benefits or Related Expenses

Annual expenditure decreased in line with the number of recipients from $1,177 million in 2012/13 to $1,129 million in 2014/15. In the following year, the number of recipients was flat and expenditure rose to $1,164 million. Annual expenditure is expected to increase from $1,129 million in 2016/17 to $1,515 million in 2020/21. Expenditure on Accommodation Assistance is expected to rise from April 2018 because of the impact of the Family Incomes Package.

The number of recipients receiving Accommodation Assistance typically follows the trends of main benefits (Jobseeker Support, Sole Parent Support and Supported Living Payment). The number of recipients peaked during 2010/11 at an average of nearly 320,000 and is expected to be around 290,000 in 2016/17. Over the next four years to 2020/21, numbers are expected to rise to nearly 298,000 in 2018/19 and then drop to nearly 294,000 in 2020/21.

The average amount of Accommodation Assistance paid per recipient increased slightly between 2012/13 and 2016/17, and is expected to increase significantly after 2017/18 from the impact of the Family Incomes Package.

Other Expenses

The increasing trend for Other Expenses is due to the transfer of $3 million from 2016/17 to 2017/18 to the appropriation Social Housing Provider Development. The transfer is from Vote Building and Housing and was due to delays in the building process, resulting in several associated grant payments now occurring in 2017/18.

Multi-Category Expenses and Capital Expenditure

The increasing trend for the Multi-Category Output Expenses is mainly due to an increase in actual and forecast expenditure on the non-departmental output expense category, Part Payment of Rent to Social Housing Providers, much of which is demand driven expenditure, which is influenced by the levels of recipient numbers and subsidies paid per person.

Part 2 - Details of Departmental Appropriations

2.1 - Departmental Output Expenses

Administering the Legacy Social Housing Fund (M37)

Scope of Appropriation

This appropriation is limited to the administration costs of the Legacy Social Housing Fund.

Expenses and Revenue

  2016/17 2017/18
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation - - 600
Revenue from the Crown - - 600
Revenue from Others - - -

Comparators for Restructured Appropriation

  2016/17 2017/18
Vote, Type and Title of Appropriation Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Vote: Building and Housing: Administering the Social Housing Legacy Fund 600 600 -
Total 600 600 600

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve safe, healthy and affordable homes through the effective and efficient administration of the Legacy Social Housing Fund.

How Performance will be Assessed and End of Year Reporting Requirements

  2016/17 2017/18
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Effective and efficient administration of the Legacy Social Housing Fund

Achieved Achieved Achieved

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Ministry of Business, Innovation and Employment in the Ministry of Business, Innovation and Employment Annual Report.

Current and Past Policy Initiatives

Policy Initiative Year of
First
Impact
2016/17
Final Budgeted
$000
2017/18
Budget
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
Efficiency Savings from the formation of Ministry of Business, Innovation and Employment 2014/15 (47) (47) (47) (47) (47)

Reasons for Change in Appropriation

This appropriation has been transferred from Vote Building and Housing with effect on 1 July 2017. The amount of the appropriation in 2017/18 is the same as in 2016/17.

Part 3 - Details of Non-Departmental Appropriations

3.2 - Non-Departmental Benefits or Related Expenses

Accommodation Assistance (M37)

Scope of Appropriation

This appropriation is limited to the Accommodation Supplement, Special Transfer Allowance, and Away From Home Allowance to cover accommodation costs, paid in accordance with the criteria set out in the Social Security Act 1964 and delegated legislation made under that Act.

Expenses

  2016/17 2017/18 2018/19 2019/20 2020/21
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000
Total Appropriation - - 1,217,767 1,488,373 1,497,277 1,515,305

Components of the Appropriation

  2016/17 2017/18 2018/19 2019/20 2020/21
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000
Accommodation Supplement - - 1,217,756 1,488,364 1,497,270 1,515,299
Special Transfer Allowance - - 11 9 7 6

Comparators for Restructured Appropriation

  2016/17 2017/18
Vote, Type and Title of Appropriation Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Vote: Social Development: Accommodation Assistance 1,146,156 1,128,656 -
Total 1,146,156 1,128,656 1,217,767

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve social outcomes by providing targeted financial support to help eligible people meet the costs of accommodation.

How Performance will be Assessed and End of Year Reporting Requirements

An exemption was granted under s.15D(2)(b)(ii) of the PFA, as additional performance information is unlikely to be informative because this appropriation is solely for payments of Accommodation Assistance under the Social Security Act 1964. Performance information relating to the administration of the payment is provided under the Improved Employment and Social Outcomes Support MCA in Vote Social Development.

Current and Past Policy Initiatives

Policy Initiative Year of
First
Impact
2016/17
Final Budgeted
$000
2017/18
Budget
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
Family Incomes Package 2017/18 - 87,559 361,583 380,296 399,723
20 Additional Medical Places 2015/16 1 1 1 1 1
Children Living in Material Hardship 2015/16 2,244 2,338 2,807 2,807 2,807
Enhanced Use of Authoritative Data 2015/16 24,272 40,453 40,453 40,453 40,453
Maintain the Student Allowance Parental Income Threshold 2015/16 (11) (60) (60) (60) (60)
Next Steps to Implement the Sole Parent Tertiary-Welfare Interface Package 2015/16 (8,745) (12,475) (12,475) (12,475) (12,475)
Response to the Syrian Refugee Crisis: Implementation 2015/16 808 1,244 958 725 725
Additional Medical Places 2014/15 4 5 5 5 5
Extending the Student Support Stand-Down Period for Permanent Residents 2014/15 621 621 621 621 621
Additional Flexibility for Highly Performing Private Training Establishments 2013/14 19 19 19 19 19
Continue 99-105% Tolerance Bands 2013/14 11 11 11 11 11
Increasing Medical Training Places 2013/14 1 1 1 1 1
Reducing Student Allowances Eligibility for Students Aged 40 and Over 2013/14 333 333 333 333 333
Removing Student Allowances Eligibility for Students Aged 65 and Over 2013/14 69 69 69 69 69
Supporting Better Public Services and the Business Growth Agenda within Vote Tertiary Education 2013/14 7 7 7 7 7
Transfer and Return of 2012/13 Underspends in Vote Tertiary Education 2013/14 9 9 9 9 9

Reasons for Change in Appropriation

This appropriation has been transferred from Vote Social Development with effect on 1 July 2017. Expenditure on Accommodation Assistance is expected to rise between 2017/18 and 2020/21 because of the impact of the Family Incomes Package.

Conditions on Use of Appropriation

Reference Conditions
Accommodation Supplement is paid under sections 61DH to 61EC of the Social Security Act 1964 The Accommodation Supplement provides a 70% subsidy for housing costs that exceed 25% of the recipient's income (for renters or boarders) or 30% of the recipient's income (for homeowners), up to a set maximum amount. The level of assistance depends on the recipient's accommodation costs, benefit payment rate, where the recipient lives and on his or her family size. The Supplement is a non-taxable payment that is asset-tested. It is income-tested for New Zealand Superannuation and Veterans' Pension recipients and for non-beneficiaries.
Away from Home Allowance is paid under the Away from Home Allowance Welfare Programme pursuant to section 124(1)(d) of the
Social Security Act 1964
The Away from Home Allowance provides assistance with accommodation costs for the caregivers of dependent 16-17 year olds who move away from home to undertake tertiary study or an approved employment related training course. The level of Allowance is based on the same formula as for Accommodation Supplement. The Allowance is a non-taxable payment.
Special Transfer Allowance is paid under the Special Transfer Allowance Programme 2000 pursuant to section 124(1)(d) of the Social
Security Act 1964
The Special Transfer Allowance provides assistance with accommodation costs to recipients of the Special Transfer Allowance prior to November 2000 and to former Tenure Protection Allowance recipients who have had their present house sold to a private landlord by Housing New Zealand Corporation. Tenure Protection Allowance ceased to exist with the introduction of the Income Related Rental Subsidy in November 2000. This Allowance is a non-taxable payment.

3.4 - Non-Departmental Other Expenses

Social Housing Provider Development (M37)

Scope of Appropriation

This appropriation is limited to providing support to third party providers of social and/or affordable housing services.

Expenses

  2016/17 2017/18
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation - - 3,926

Comparators for Restructured Appropriation

  2016/17 2017/18
Vote, Type and Title of Appropriation Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Vote: Building and Housing: Social Housing Provider Development 791 791 -
Vote: Building and Housing: Social Housing Fund MYA 3,000 3,000 -
Total 3,791 3,791 3,926

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve safe, healthy and affordable homes by supporting third party providers of social and/or affordable housing services.

How Performance will be Assessed and End of Year Reporting Requirements

  2016/17 2017/18
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

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

- - Exempted

Current and Past Policy Initiatives

Policy Initiative Year of
First
Impact
2016/17
Final Budgeted
$000
2017/18
Budget
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
Social Housing Reform Programme - Community Housing Aotearoa 2015/16 600 700 - - -
Social Housing Reform Programme 2015/16 (9,774) (9,774) - - -
Social Housing Fund 2015/16 10,000 10,000 - - -

Reasons for Change in Appropriation

This appropriation has been transferred from Vote Building and Housing with effect on 1 July 2017.

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

Multi-Category Expenses and Capital Expenditure

Community Group Housing (M37)

Overarching Purpose Statement

The overarching purpose of this appropriation is to purchase housing services from Housing New Zealand Corporation and Community Group Housing providers to maintain the supply of tenanted Community Group Housing properties.

Scope of Appropriation

Non-Departmental Output Expenses
Community Group Housing Market Rent Top-Up
This category is limited to the provision of funding to Housing New Zealand Corporation to pay the difference between the contracted rent with the Community Group Housing provider and market rent for the leased properties.
Non-Departmental Other Expenses
Community Housing Rent Relief
This category is limited to the provision of a rent relief fund to Community Group Housing providers for the sole purpose of helping them meet their contracted rent payments.
Non-Departmental Capital Expenditure
Acquisition and Improvement of Community Group Housing Properties
This category is limited to debt or equity in Housing New Zealand Corporation to acquire, modernise or reconfigure properties leased by Community Housing Providers.

Expenses, Revenue and Capital Expenditure

  2016/17 2017/18
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000

Total Appropriation

- - 20,010

Non-Departmental Output Expenses

     
Community Group Housing Market Rent Top-Up - - 10,106

Non-Departmental Other Expenses

     
Community Housing Rent Relief - - 4,104

Non-Departmental Capital Expenditure

     
Acquisition and Improvement of Community Group Housing Properties - - 5,800

Comparators for Restructured Appropriation

  2016/17 2017/18
Vote, Type and Title of Appropriation Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Vote: Building and Housing: Community Group Housing MCA 19,668 19,668 -
Total 19,668 19,668 20,010

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve safe, healthy and affordable homes by supporting third party providers of social and/or affordable housing services.

How Performance will be Assessed for this Appropriation

The performance for this appropriation will be assessed by Housing New Zealand Corporation's support to community group providers by making available up to 1,500 community group housing properties and related housing services.

What is Intended to be Achieved with each Category and How Performance will be Assessed

  2016/17 2017/18
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Non-Departmental Output Expenses

     

Community Group Housing Market Rent Top-Up

     

This category is intended to achieve safe, healthy and affordable homes with the purchase of housing services from Housing New Zealand Corporation.

     

An exemption was granted under s15D(2)(b)(ii) of the Public Finance Act, as additional performance information is unlikely to be informative in light of the nature of the transaction or causal event giving rise to the expense.

Exempted Exempted Exempted

Non-Departmental Other Expenses

     

Community Housing Rent Relief

     

This category is intended to achieve safe, healthy and affordable homes by the provision of rent relief to service provider tenants of the Community Group Housing properties.

     

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

Exempted Exempted Exempted

Non-Departmental Capital Expenditure

     

Acquisition and Improvement of Community Group Housing Properties

     

This category is intended to achieve the acquisition, modernisation or reconfiguration of Housing New Zealand Corporation state houses to ensure safe, healthy and affordable homes.

     

An exemption was granted under s15D(2)(b)(iii) of the Public Finance Act as the amount of this annual appropriation for a non-departmental capital expenditure is less than $15 million.

Exempted Exempted Exempted

Service Providers for the Multi-Category Appropriation

Housing New Zealand Corporation is the sole service provider.

End of Year Performance Reporting

 Performance information for this appropriation will be reported by the Ministry of Social Development in the Ministry of Social Development Annual Report.

Current and Past Policy Initiatives

Policy Initiative Year of
First
Impact
2016/17
Final Budgeted
$000
2017/18
Budget
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
Community Group Housing Market Rent Top-Up 2015/16 7,364 7,706 8,060 8,060 8,060

Reasons for Change in Appropriation

This appropriation has been transferred from Vote Building and Housing with effect on 1 July 2017.

Emergency Housing (M37)

Overarching Purpose Statement

The single overarching purpose of this appropriation is to fund the delivery of emergency housing places in New Zealand.

Scope of Appropriation

Non-Departmental Output Expenses

Emergency Housing Services
This category is limited to payments to emergency housing providers on a per household basis to cover tenancy and property management; and services to support tenants in emergency housing to move into sustainable housing.
Provision of Emergency Housing Places
This category is limited to supporting emergency housing providers to provide emergency housing places.

Expenses, Revenue and Capital Expenditure

  2016/17 2017/18
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000

Total Appropriation

- - 48,544

Non-Departmental Output Expenses

     
Emergency Housing Services - - 21,935
Provision of Emergency Housing Places - - 26,609

Comparators for Restructured Appropriation

  2016/17 2017/18
Vote, Type and Title of Appropriation Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Vote Social Development: Emergency Housing MCA 23,652 23,652 -
Total 23,652 23,652 48,544

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve better outcomes for vulnerable households through the provision of emergency housing and associated support services.

How Performance will be Assessed for this Appropriation

Performance will be assessed by delivering between 2,000 and 2,200 emergency housing places and associated support services (where applicable).

What is Intended to be Achieved with each Category and How Performance will be Assessed

  2016/17 2017/18
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Non-Departmental Output Expenses

     

Emergency Housing Services

     

This category is intended to achieve an increase in support services for the families and individuals who access the additional emergency housing places secured.

     

The total number of emergency housing places that receive associated support services (see Note 1) will be between

New measure for 2017/18 New measure for 2017/18 1,200 - 1,400

Provision of Emergency Housing Places

     

This category is intended to achieve improved access to emergency places for eligible families and individuals across New Zealand.

     

The number of emergency housing places (see Note 2) in areas of demand will be between (see Note 3)

1,200 - 1,400 1,200 - 1,400 2,000 - 2,200

Note 1 - Support Services allocated in this category only cover the additional 1,400 emergency housing places funded through the Cabinet paper titled "Measures to support more people in emergency housing."

Note 2 - Places can house either individuals or family units. The term 'place' is used to describe the unit of housing that meets the need of a household (be it an individual or a family).

Note 3 - The Emergency Housing Response appropriation was merged into this category from 1 July 2017, hence the increase in the 2017/18 Budget Standard.

Service Providers for the Multi-Category Appropriation

Provider 2016/17
Final Budgeted
$000
2016/17
Estimated Actual
$000
2017/18
Budget
$000
Expiry of
Resourcing
Commitment

Emergency Housing Services

       
Oasis Network Inc 145 145 179 30/11/2019
Tai Tokerau Emergency Housing Charitable Trust 38 38 124 1/01/2020
Koraunui Marae Charitable Trust 26 26 22 1/03/2020
Ngati Awa Social and Health Services Trust 8 8 17 1/03/2020

Total - Emergency Housing Services

217

217

342

 

Provision of Emergency Housing Places

       
The Salvation Army New Zealand Trust 1,573 1,573 1,573 30/06/2019
Emerge Aotearoa Limited 912 912 608 28/02/2018
V and S Williamson Limited T/A Middlepark Motel 648 648 - 15/03/2017
Comcare Charitable Trust 421 421 379 30/06/2019
VisionWest Community Trust 328 328 - 31/01/2017

Total - Provision of Emergency Housing Services

3,882

3,882

2,560

 

The table above shows the main service providers for this appropriation.

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Ministry of Social Development in the Ministry of Social Development Annual Report.

Current and Past Policy Initiatives

Policy Initiative Year of
First
Impact
2016/17
Final Budgeted
$000
2017/18
Budget
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
2020/21
Estimated
$000

Provision of Emergency Housing Places

           
Measures to Support More people in Emergency Housing 2016/17 9,028 14,942 14,878 15,651 16,465

Emergency Housing Services

           
Measures to Support More people in Emergency Housing 2016/17 14,624 21,935 21,935 21,935 21,935

Reasons for Change in Appropriation

This appropriation has been transferred from Vote Social Development with effect on 1 July 2017. This appropriation has increased by $24.892 million to $48.544 million in 2017/18 when compared to the restructured comparator due to:

  • fiscally neutral transfer from the Vote Social Development, Non-departmental Output Expense, Emergency Housing Response to provide for the establishment of the Emergency Housing MCA: $11.667 million
  • increase in the comparative cost between financial years of the policy initiative Measures to Support More People in Emergency Housing: $13.225 million.

Social Housing Outcomes Support (M37)

Overarching Purpose Statement

The single overarching purpose of this appropriation is to operate the social housing register and associated interventions in such a way as to support more people with the greatest housing need into housing, and to move those who are capable of housing independence closer towards that.

Scope of Appropriation

Departmental Output Expenses

Services to Support People to Access Accommodation
This category is limited to assessing and reviewing eligibility for social housing and income related rent, social housing register management and the accurate and timely payment of income related rent subsidies to the social housing provider.

Non-Departmental Output Expenses

Services Related to Supporting Outcomes for those in need of or at risk of needing Social Housing
This category is limited to the provision of support services to those in need of social housing or those at risk of entering social housing.

Non-Departmental Other Expenses

Housing Support Package
This category is limited to the provision of incentives, products and services to help households with lower housing need who are in, or seeking social housing, to access or retain alternative housing solutions.

Expenses, Revenue and Capital Expenditure

  2016/17 2017/18
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000

Total Appropriation

- - 51,383

Departmental Output Expenses

     
Services to Support People to Access Accommodation - - 43,345

Non-Departmental Output Expenses

     
Services Related to Supporting Outcomes for those in need of or at risk of needing Social Housing - - 5,438

Non-Departmental Other Expenses

     
Housing Support Package - - 2,600

Funding for Departmental Output Expenses

     

Revenue from the Crown

- - 43,345
Services to Support People to Access Accommodation - - 43,345

Comparators for Restructured Appropriation

  2016/17 2017/18
Vote, Type and Title of Appropriation Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Vote Social Development: Social Housing Outcomes Support MCA 54,380 54,380 -
Total 54,380 54,380 51,383

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve housing assessments and placement on the housing register for people with a housing need, and to provide support to those who are capable to be independent of social housing over the longer term.

How Performance will be Assessed for this Appropriation

Performance will be assessed using a combination of data sources. Administrative data will allow the tracking of achievement of housing assessments and placement on the housing register. Additional sources of information, including a social housing valuation, will be used to track the key drivers and risk factors that predict social housing needs and identify variances in trends projected from the valuation. Over time, repeated valuations will contribute to an understanding of how the management of the social housing system is influencing movements in the future valuation.

What is Intended to be Achieved with each Category and How Performance will be Assessed

  2016/17 2017/18
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Departmental Output Expenses

     

Services to Support People to Access Accommodation

     

This category is intended to achieve accurate and efficient operation of the social housing register so that more people who are eligible for social housing have their housing needs met, and those who are capable of housing independence move closer towards that.

     

The percentage of Income-Related Rent assessments (for tenants with verified income) that are calculated accurately will be no less than

90% 96.1% 90%

The proportion of housing needs assessments completed within five working days will be no less than

90% 90% 90%

Non-Departmental Output Expenses

     

Services Related to Supporting Outcomes for those in need of or at risk of needing Social Housing

     

This category is intended to achieve an increase in the number of people who are able to secure and sustain tenancies, and transition to housing independence.

     

The number of trials supported through the Tenant Outcomes Fund will be no less than

3 3 3

Non-Departmental Other Expenses

     

Housing Support Package

     

This category is intended to achieve more people transitioning from social housing to housing independence to ensure that social housing is available for households with the greater housing need.

     

An exemption was granted under s.15D(2)(b)(iii) of the PFA as the amount of this annual appropriation for a Non-departmental output expense is less than $5 million

Exempted Exempted Exempted

Service Providers for the Multi-Category Appropriation

Provider 2016/17
Final Budgeted
$000
2016/17
Estimated Actual
$000
2017/18
Budget
$000
Expiry of
Resourcing
Commitment

Services Related to Supporting Outcomes for those in need of or at risk of needing Social Housing

       
The Lifewise Trust 800 800 200 31/01/2019
Linkpeople Limited 738 738 1,025 13/02/2019
Affinity Services Limited 521 521 609 31/01/2019
VisionWest Community Trust 542 542 667 20/02/2019
STRIVE Community Trust 259 259 259 20/02/2019

Total Services Related to Supporting Outcomes for those in need of or at risk of needing Social Housing

2,860

2,860

2,760

 

Housing Support Package

       
Various households 2,600 2,600 2,600  

Total Housing Support Package

2,600

2,600

2,600

 

The table above shows the main service providers for this appropriation.

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Ministry of Social Development in the Ministry of Social Development Annual Report.

Current and Past Policy Initiatives

Policy Initiative Year of
First
Impact
2016/17
Final Budgeted
$000
2017/18
Budget
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
2020/21
Estimated
$000

Services to Support People to Access Accommodation

           
Delivering the Social Housing Reform Programme: Additional Resource for the Ministry of Social Development 2016/17 3,700 - - - -
Developing an Integrated Social Investment and Purchasing Model for Social Housing 2016/17 8,605 17,488 13,835 11,285 10,932
Ensuring the Safety of Our Employees 2016/17 228 158 28 28 28
Measures to Support More people in Emergency Housing 2016/17 2,900 2,900 - - -
Securing the Supply of Housing for Vulnerable People in Auckland 2016/17 3,352 - - - -
Social Housing - Emergency Housing 2016/17 950 50 - - -
Social Housing Reform Programme 2015/16 6,644 5,009 5,009 5,009 5,009

Services Related to Supporting Outcomes for those in need of or at risk of needing Social Housing

           
Positive Pathways for People with a Corrections History 2017/18 - 438 438 438 438

Reasons for Change in Appropriation

The appropriation has been transferred from Vote Social Development with effect on 1 July 2017.

Social Housing Purchasing (M37)

Overarching Purpose Statement

The single overarching purpose of this appropriation is to secure and purchase social housing tenancies for those who are eligible.

Scope of Appropriation

Non-Departmental Output Expenses

Part Payment of Rent to Social Housing Providers
This category is limited to the part purchase of tenancies from social housing providers.
Services Related to the Provision of Social Housing
This category is limited to the provision of services related to the provision of social housing by a social housing provider.

Expenses, Revenue and Capital Expenditure

  2016/17 2017/18
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000

Total Appropriation

- - 900,851

Non-Departmental Output Expenses

     
Part Payment of Rent to Social Housing Providers - - 900,451
Services Related to the Provision of Social Housing - - 400

Comparators for Restructured Appropriation

  2016/17 2017/18
Vote, Type and Title of Appropriation Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Vote: Social Development: Social Housing Purchasing MCA 899,924 899,924 -
Total 899,924 899,924 900,851

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve better access to social housing places by providing payments to secure access to properties for social housing providers and the part-purchase of social housing tenancies from social housing providers.

How Performance will be Assessed for this Appropriation

  2016/17 2017/18
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

The total number of social housing places (see Note 1) provided by all social housing providers will be no less than

New measure for 2017/18 New measure for 2017/18 67,000

Note 1 - A social housing place is defined for this purpose as a property that is available for a tenant who may be eligible for the income related rent subsidy (IRRS), and includes:

  • any house provided by Housing New Zealand Corporation (HNZC) (excluding community group housing, but including IRRS tenancies, market rent tenancies, and short and long-term vacancies)
  •  or an IRRS tenancy provided by a registered Community Housing Provider (CHP).

What is Intended to be Achieved with each Category and How Performance will be Assessed

  2016/17 2017/18
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Non-Departmental Output Expenses

     

Part Payment of Rent to Social Housing Providers

     

This category is intended to achieve an increase in social housing support for eligible people through the payment of income-related rent subsidy.

     

This category will contribute 90-100% of what is intended to be achieved with the Social Housing Purchasing MCA.

New measure for 2017/18 New measure for 2017/18 Achieved

Services Related to the Provision of Social Housing

     

This category is intended to achieve continuity of support for social housing tenants who previously had the cost of water rate charges paid for.

     

An exemption was granted under s.15D(2)(b)(iii) of the PFA as the amount of this annual appropriation for a non-departmental output expense is less than $5 million

Exempted Exempted Exempted

Service Providers for the Multi-Category Appropriation

Provider 2016/17
Final Budgeted
$000
2016/17
Estimated Actual
$000
2017/18
Budget
$000
Expiry of
Resourcing
Commitment

Part Payment of Rent to Social Housing Providers

       
Housing New Zealand Corporation 770,000 755,000 755,000 Contract reviewed annually
Tamaki Housing Association 42,500 42,500 43,000 Contract reviewed annually
Accessible Properties New Zealand Limited 1,522 1,522 20,000 Contract reviewed annually
Community of Refuge Trust 1,450 1,450 1,500 Contract reviewed annually
Linkpeople Limited 1,165 1,165 1,250 Contract reviewed annually

Total Part Payment of Rent to Social Housing Providers

816,637

801,637

820,750

 

Services Related to the Provision of Social Housing

       
Accessible Properties New Zealand Limited 400 400 400 31/03/2042

Total Services Related to the Provision of Social Housing

400

400

400

 

The table above shows the main service providers for this appropriation.

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Ministry of Social Development in the Ministry of Social Development Annual Report.

Current and Past Policy Initiatives

Policy Initiative Year of
First
Impact
2016/17
Final Budgeted
$000
2017/18
Budget
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
2020/21
Estimated
$000

Part Payment of Rent to Social Housing Providers

           
Family Incomes Package 2017/18 - (1,649) (6,183) (4,940) (4,940)
Positive Pathways for People with a Corrections History 2017/18 - 673 2,015 3,513 5,145
Increasing the Supply of Social Housing in Auckland 2016/17 15,880 - 8,500 - -
Increasing the Supply of Social Housing in Auckland 2016/17 4,171 5,073 1,096 (50) -
Social Housing - Additional Income-Related Rent Subsidy Funding 2016/17 8,750 31,850 52,360 24,310 24,310

Services Related to the Provision of Social Housing

           
Social Housing - Water rates in Tauranga for transferred Social Housing properties 2016/17 400 400 300 300 300

Support for the Provision of Social Housing Supply

           
Increasing the Supply of Social Housing in Auckland 2016/17 18,980 (26,150) 13,770 (16,890) -
Social Housing - Additional Income-Related Rent Subsidy Funding 2016/17 13,550 26,150 26,140 16,890 16,890

Reasons for Change in Appropriation

The appropriation has been transferred from Vote Social Development with effect on 1 July 2017.