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 question we are asked most often is 'am I elgible for support on the project'? This document gives details of our criteria.
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 is done to provide revenue to the project to undertake our charitable activities. See our FAQ section for further details.
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. The project's approach and expectations/rules for tenants are given here.
- 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:
- Our agent (potentially Ray White Realty) will review the various applications for tenancy and identify a short list of potential tenants who meet our criteria for support
- A committee comprised of a representative of the project and the land owner will interview prospective tenants and identify the most suitable candidate. The selection will be done in full accordance with the provisions of the Tenancy Act.
GBMAHP Land (Phase 3):
To be confirmed. But likely 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.
The approach depends if the hosting is to be on a rental basis to the project, or on a "rent-to-own" basis. The former sees the project owning and managing the home; the latter sees the tenant eventually owning the home. We only agree to "rent-to-own" hosting when there is a secure lease for the tenant (which usually means it is for houses on property owned by family, whanau or friends).
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.
- We agree on an occupancy license/ground lease agreement and payment (which may be as little as $1/year if you really want to help) for a minimum period of 10-15 years
- The project covers all costs and activities required to build the homes (e.g. resource consent, building consent, the build, wastewater, power, etc.).
- The house is owned and managed by the project.
- At the end of the 10-15 year agreement (or if the house is sold):
- The agreement is renewed (if sold, by the new owner)
- The house is relocated
- The house may be sold to the landowner at an agreed valuation
- The tenant signs a lease agreement with the landowner for a term sufficient for them to pay the capital cost of providing the house
- For costs:
- The project covers all costs and activities required to build the homes (e.g. building consent, the build, wastewater, power, etc.) as well as preparing the resource consent
- The tenant pays the costs to Tasman District Council for processing the resource consent (as evidence of full commitment to the project)
- The tenant has a mortgage with the project or another mortgage provider based on the actual build cost plus an additional payment to the project to cover the project costs.
- The weekly payments discharge the mortgage over time (typically 15-20 years @ $300/week)
- Once discharged, the ownership of the house is transferred from the project to the tenant.
- Unlike with the rental model, all costs of maintenance and house ownership are paid for by the tenant.
- If the property should be sold before the mortgage is discharged:
- The agreement is renewed
- The house is relocated
- The house may be sold to the landowner at an agreed valuation and the revenue split between the tenant and the project based on the percentage of the mortgage outstanding