Seeking a Home
There are three potential ways that the project is hoping to assist people:
- Rental: This is Phase 1 and 2 of our project. Here we are identifying people who are willing to 'host' homes on their properties (see below).
- Rent-to-own: In Phases 1 and 2 this will only be done when there is secure access to the land (e.g. a family is hosting). In Phase 3 we hope to be able to secure land which we can offer on long-term (99 year) leasehold terms to provide security of land tenancy to allow rent-to-own.
- Ownership: This can be done in Phase 3 when the project has its own land, or at any time where people have their own land arrangements. The project will build one of our affordable homes. The tenant/landowner will pay the project's costs for the build--which will almost certainly be much less than any other options on the market in Golden Bay.
The figure below shows the different options.
The question we are asked most often is 'am I elgible for support on the project'? To start with, there are three overarching considerations:
- Home must be for a permanent primary residence by the applicant;
- Cannot own a home already;
- Must be a New Zealand citizen or permanent resident; and,
- Must have ties with Golden Bay:
- having resided in Golden Bay continuously for a minimum of two years; or,
- having immediate—and preferably dependent—family who have resided in Golden Bay continuously for a minimum of two years
If the above apply, we then have an 'affordability' criteria. This is because we don't have unlimited funds to build houses, or human resources to meet all of the potential needs for affordable housing in Golden Bay. Depending upon the household wealth/income, the project will assist people into affordable housing in different ways:
- Direct project support in terms of the project assisting with providing participants with affordable housing to rent or rent-to-own will be given to those who are poor, in need, disabled, aged, or suffering genuine hardship. The project will prioritize on those in greatest charitable need from those eligible, where this charitable need is identifed based on the principles defined by the Charities Commission (https://charities.govt.nz/charities-in-new-zealand/legal-decisions/view-the-decisions/view/queenstown-lakes-community-housing-trust-2). We have limited funds and human resources, so these are focused on the neediest.
- Indirect project support will be provided to others. This will consist them being able to construct our houses privately by contracting our builders directly to construct affordable houses on land that they have identified, with funding arranged independently of the GBMAHP. This will make affordable homes available to the wider community.
To be eligible for 'Direct' support, currently we have adopted the following two thresholds:
- Household Income: Your household annual income must be below the median Tasman household income ($68,078 for 2021); and,
- Assets: Total assets, including cash, investments, house and other property (but not including car and furniture) do not exceed $50,000.
With all of the above our primary focus where possible is on those with low incomes and/or in the most vulnerable housing situations. We reserve the right to vary these criteria at any time on a case-by-case basis. We will review and update these at least annually, particularly as we raise more capital which allows us to increase our capacity and the number of homes we can build.
The second question we get is how tenants are identified for homes. This is done as follows (and shown below):
- If the landowner hosting the home already has identified a tenant who meets the above criteria (e.g. a family member) the project will review the situation and confirm eligibility; or,
- The landowner will be matched with a siutable tenant as follows:
- The landowner will describe the type of tenant they are seeking to host on their property;
- The project will review the applicants who have expressed interest to identify potential matches--including if necessary contacting organizations such as Mohua Social Services, Manawhenua ki Mohua, etc.;
- The potential tenants will be asked to confirm if the property on offer suits them (e.g. may not be in the right location) and will provide additional details
- The landowner will review the responses, and meet their preferred potential tenants, ideally identifying the right fit
- If a good fit cannot be found, the project team will work to identify other potential candidates
GBMAHP Land (Phase 3):
Selection is via a lottery after eligible tenants have been identified.
Hosting a Home
Are you a property owner who would like to host a home? Please register your interest here.
Hosting a home would see you entering into an occupancy licence agreement with the project for hosting the home. During Phases 1 and 2 these would be done as 'secondary minor dwellings' in accordance with Tasman District Council's current regulations, or multiple homes on a single title. In Phase 3 we would also host homes on long-term leasehold arrangements.
If agreement is reached for you to host a home, the project will cover all costs and activities required to build the homes (e.g. resource consent, building consent, the build, wastewater, power, etc.). We would then enter into an arrangement to manage the rental and pay the landowner for the occupancy. As described in the Concept Proposal there are three potential models when it comes to occupancy license payments:
- A public good model, where no occupancy license payment is needed (e.g. when hosting family or just to assist the community);
- An income model where the land owner receives a regular payment; or,
- A capital model where the land owner takes ownership of the house after (say) 15 years (the time will be confirmed after the first builds are done and the actual costs are known). This is essentially a rent-to-own model, but where the landowner instead of the tenant owns the dwelling. This is revenue neutral to the project, and has the advantage that it would incentivise owners to participate, thereby increasing the supply of rental housing stock in Golden Bay.
These models will be refined once the Phase 1 builds are completed and the full costs of the homes are known so the financial modelling can be refined. Each model has a different impact on the cost of providing accommodation, as shown below from the Concept Proposal.
Persons with large sections of land who could potentially host multiple homes will have to wait for Phase 3 of the project, as this scenario has a number of regulatory and other complications. However, we would be interested in hearing from you now so that we could consider your properties as early as possible moving forward.
Please note that ther are tax implications for you with the 'Income' and 'Capital' models (see the Concept Proposal). We will be working with the IRD to confirm what these exactly are prior to implementation.
An important caveat: not all offers of hosting will work for us. Tasman District Council has clear zoning criteria for the provision of secondary minor dwellings. Our goal is to provide these in zones where they are 'Controlled' activities, i.e. where resource consent must be granted, but which may include conditions to manage the environmental effects. Even if your property qualifies here, there may be site specific reasons why it is impracticable for us to accept your offer, for example difficult access, terrain, geotechnical, etc.
Investing in Affordable Housing
If you would like to discuss potentially investing in affordable housing please register your interest here. We are not actively soliciting funds at the moment, but will do so once the necessary financial management arrangements are in place to ensure appropriate governance.
This is not a donation but an investment. We are working to establish the exact vehicle that we will use to manage the project finance. The basic approach we are working towards is that investors will receive twice the current rate for a 5 year term deposit at the trading banks. Currently, this would be approximately 2%. We already have commitments for 25% of our $1 million target for Phase 1, which will cover project establishment costs and the first house.
Of course donations will always be welcome (thanks to our first donor Victoria Davis!), but we see the project as being able to offer an above market return to our investors while also helping the community.
Assisting the Project Team