Housing Minister Chris Bishop has unveiled a new strategy to revamp Kāinga Ora, the government’s housing agency, ensuring that the total number of social houses will remain stable. Endorsed by Cabinet and announced on Tuesday, the plan aims to increase the housing stock by approximately 400 homes annually. This growth will be achieved through a combination of new builds and retrofits, offset by sales and demolitions.
Refocusing Kāinga Ora
Bishop outlined five key components of the strategy, emphasizing a renewed focus on the core mission of building, maintaining, and managing quality social housing. This includes improving tenant and community management, enhancing housing portfolio and build management, optimizing organizational performance for cost-effectiveness, and establishing a sustainable approach to funding. The overarching goal is to streamline operations and ensure the agency’s long-term financial viability.
In a bid to optimize resources, Kāinga Ora will prioritize sales of older properties in high-value areas, with proceeds reinvested to create new units in different locations. The sales program will target properties that are no longer suitable for purpose or cost-effective to maintain, enabling the agency to reallocate resources efficiently. Additionally, the focus will shift towards constructing or acquiring simple, functional, and energy-efficient homes to bring down construction costs and align them with market rates.
Financial Sustainability and Operational Improvements
As part of the strategic overhaul, the agency’s scope will be narrowed, with the Ministry of Housing and Urban Development and the National Infrastructure Agency assuming specific functions. By winding down the Kāinga Ora Land Programme and implementing legislative amendments, the government aims to streamline operations and enhance overall efficiency. The plan also includes reducing deficits by $190 million in the current financial year and curtailing debt by approximately $1.8 billion compared to pre-election projections.
The strategic revamp follows a comprehensive review of Kāinga Ora’s operations, which highlighted financial challenges and the need for significant reform to ensure sustainability. Recognizing the agency’s underperformance, the government appointed a new board and mandated the development of a turnaround plan to address operational inefficiencies and financial deficits. The plan aims to realign Kāinga Ora’s priorities, improve performance, and set the agency on a path to long-term success.
By implementing these strategic changes, Housing Minister Chris Bishop envisions a more efficient, sustainable, and tenant-centric Kāinga Ora that fulfills its core mandate of providing quality social housing. The comprehensive plan is designed to address key operational challenges, improve financial stability, and ensure the agency remains a vital resource for those in need of secure and affordable housing. With a focus on innovation, efficiency, and stakeholder engagement, the revamped Kāinga Ora aims to deliver tangible benefits to communities across New Zealand.