Kāinga Ora Explained

Agency Name:Kāinga Ora – Homes and Communities
Native Name:[1]
Formed:1894 – State Advances Office
1936 – State Advances Corporation
1974 – Housing Corporation of New Zealand (HCNZ)
2001 – Housing New Zealand Corporation
2018 – Housing New Zealand (HNZ)
2019 – Kāinga Ora – Homes and Communities
Jurisdiction:New Zealand
Headquarters:Level 5, 7 Waterloo Quay
Wellington 6011,
New Zealand
Employees:3305 (2023)[2]
Minister1 Name:Hon Chris Bishop
Minister1 Pfo:Minister of Housing
Minister2 Name:Hon Tama Potaka
Minister2 Pfo:Associate Minister of Housing (Social Housing)
Chief1 Name:Simon Moutter
Chief1 Position:Board Chairperson[3]
Chief2 Name:Andrew McKenzie
Chief2 Position:Chief Executive

Kāinga Ora, officially Kāinga Ora – Homes and Communities,[4] is a Crown agency that provides rental housing for New Zealanders in need. It has Crown entity status under the Kāinga Ora–Homes and Communities Act 2019.

On 1 October 2019 Kāinga Ora was formed by the merger of Housing New Zealand with its development subsidiary Homes, Land, Community (HLC) and the KiwiBuild Unit from the Ministry of Housing.

Kāinga Ora is a large and important Crown entity, with assets of $45 billion and over $2.5 billion of expenditure each year. It owns over 70,000 homes and is the country’s biggest landlord, providing accommodation to people often in great need.[5]

History

Origins

State housing in New Zealand dates from 1894 with the establishment of the State Advances Office.[6]

In 1905, Prime Minister Richard Seddon introduced the Workers Dwellings Act 1905, introducing public housing to New Zealand. This Act made New Zealand the first nation in the Western world to provide public housing for its citizens. The scheme ultimately failed in 1906 when the workers could no longer afford to pay the high rents asked by the Government for the properties.[7]

The first official state house was opened in 1937 at 12 Fife Lane in Miramar in Wellington.[8]

Housing New Zealand, 1974-2019

Housing Corporation of New Zealand was formed in 1974 through a merger of the State Advances Corporation (SAC) and the Housing Division of the Ministry of Works.[9]

The Housing New Zealand Corporation in its current form is a statutory corporation that was established on 1 July 2001 under the Housing Corporation Act 1974, as amended by the Housing Corporation Amendment Act 2001. This was an amalgamation of Housing New Zealand Limited, Community Housing Limited, and the Ministry of Social Policy. In 2018 the Labour-led coalition government removed the word Corporation from the name and it was formally known as Housing New Zealand (HNZ).[10]

Kāinga Ora, 2019 - present

On 1 October 2019 the Labour-led government merged Housing New Zealand with its development subsidiary HLC and the KiwiBuild Unit from the Ministry of Housing and Urban Development to form a new Crown entity called Kāinga Ora – Homes and Communities.[11] [12]

Following the 2023 New Zealand general election, the incoming National-led coalition government announced that former Prime Minister Bill English, financial expert Simon Allen, and Ceinwein McNeil would be leading an independent review into the agency's financial situation, procurement, and asset management.[13]

In March 2024, Housing Minister Chris Bishop and Finance Minister Nicola Willis ordered Kāinga Ora to end the previous Labour Government's "Sustainable Tenancies Framework" and take disciplinary action against unruly tenants and those with overdue rent including evictions and relocations.[14] The Government's announcement was criticised by Green Party housing spokesperson Tamatha Paul, who described the policy as seeking to create a category of "undeserving poor" and argued that housing was a basic right. Labour Party housing spokesperson Kieran McAnulty responded that the Government's policy failed to address the housing shortage. By contrast, ACT Party leader David Seymour and Manurewa-Papakura Ward Councillor Daniel Newman welcomed the eviction of unruly state housing tenants.[15]

In May 2024, English's review into Kāinga Ora criticised the housing agency's excessive borrowing practices and leadership. On 20 May, Prime Minister Christopher Luxon and Housing Minister Bishop announced on a multi-year revamp of the agency including replacing the leadership board, realigning contractual arrangements across Kāinga Ora and community housing providers, simplifying the agency's directive and requiring the new leadership board to develop a plan to improve financial performance and reduce losses. Simon Moutter, the former chief executive of Powerco, Auckland International Airport and Spark New Zealand, was appointed Kāinga Ora's new board chair, effective 4 June 2024.[16] On 21 May, Newshub reported that the Government would scrap Kāinga Ora's NZ$60 million first-home grant programme and redirect the money towards social housing as part of the 2024 Budget.[17] On 1 July 2024, Kāinga Ora CEO Andrew McKenzie resigned due to disagreements with the Government's overhaul of the housing agency including reducing its scale and accountabilities.[18]

In mid July 2024, RNZ reported that 14 state housing tenancies had been revoked in the past three months due to behavioural issues or persistent rent arrears. In addition, 80 Section 55A formal warning notices had been issued to tenants for disruptive behaviour over the past three months, compared to 13 warnings for the same period in 2023. Housing Minister Bishop praised the increase in disciplinary actions against unruly tenants, saying that "there needs to be consequences for bad behaviour." Citizens Advice Bureau national advisor Sacha Green also confirmed that her group had seen a 24% increase in customers seeking eviction-related advice in 2024 and attributed problematic behaviour to various underlying issues including mental health, addiction and poverty.[19]

Responsibility

Housing New Zealand was the New Zealand Government's principal advisor on housing with its primary role as a provider and manager for housing, specialising in New Zealanders in need of housing assistance.[20]

In 1986, The Residential Tenancies Act was passed and The Ministry of Housing was formed. This entity was responsible for government housing policy, managing the State Housing Appeals Authority, holding and managing Tenancy bond monies, providing tenancy advice (Tenancy Services), delivering mediations and administration of The Tenancy Tribunal.

In 2004 this role was transferred to the Department of Building and Housing, and then in 2012 it was again transferred to the Ministry of Business, Innovation and Employment. In 2019 the Ministry of Housing held the role.

In April 2014 the Ministry of Social Development took over the assessment of housing needs to determine who was entitled to social housing and their rent subsidy entitlement.[21]

Kāinga Ora is one of New Zealand's largest providers of housing, owning and maintaining almost 69,000 properties housing approximately 200,000 people. It estimates the assets it is responsible for to be worth around 40 Billion dollars. It also maintains a focus on urban development, having delivered approximately 7,000 homes since its formation, and plans to deliver a further 40,000 in coming years.https://kaingaora.govt.nz/about-us/who-we-are/

Kāinga Ora works closely with both the Ministry of Social Development and the Ministry of Housing and Urban Development with Kāinga Ora's main responsibilities in relation to MSD and HUD being placing people from the Housing Register into homes, as well as delivering more public, transitional, and affordable housing.[22]

Management

Ministers responsible

The shareholding ministers of all Housing New Zealand subsidiaries are the Minister of Housing and the Minister of Finance.

The Minister of Housing/and Urban Development

Associate Minister of Housing (Social Housing)

Associate Minister of Housing and Urban Development/Minister for Building and Construction

Associate Minister of Housing (Maori)

Associate Minister of Housing (Homelessness)

The Minister of Finance

Board

NamePositionNotes
Simon MoutterChairperson
John DuncanDeputy Chairperson
Ngarimu BlairDirector
Robin HapiDirector
Philippa Howden-Chapman Director
Penelope HulseDirector
Victoria KingiDirector
John BridgmanDirector

Chairpersons

Senior management

The Kāinga Ora Leadership Team at 23 July 2021 was as follows.

NameTitleNotes
Andrew McKenzieChief executive[39]
Caroline ButterworthDCE Auckland & Northland
Daniel SoughttonDCE Central
Paul CommonsDCE South Island
Te Ariki PihamaRing Raupa DCE Māori
Matthew HulettGeneral Manager Delivery Transformation
Caroline McDowallGeneral Manager Commercial
Patrick DoughertyGeneral manager Construction & Innovation
Nick MalingGeneral manager National Services
Gareth StivenGeneral manager Strategy, Finance & Policy
Rowan MacraeGeneral manager People, Governance & Capability
Katja LietzGeneral manager Urban Planning & Design
Mark FraserGeneral manager Urban Development & Delivery

Chief executives

Controversies

Arena Williams advertisement

In November 2021, Kāinga Ora drew controversy after Newshub and Radio New Zealand reported that the agency had used Labour Party candidate Arena Williams in a taxpayer funded advertisement in 2020, compromising its political neutrality. Kāinga Ora drew criticism from Housing Minister Megan Woods and National Party Nicola Willis on the grounds of professionalism and compromising its political neutrality.[45] [46] Woods subsequently reported the agency to the Public Service Commission.[47] The National Party called for an investigation into Kāinga Ora, alleging a cover up and "culture of deceit."

Notes and References

  1. Web site: Housing New Zealand. www.govt.nz. New Zealand Government. 22 July 2017.
  2. Web site: Annual Report. 30 Jun 2023.
  3. Web site: Our Structure. Käinga Ora. 4 August 2024.
  4. Web site: Housing New Zealand: Home . Kāinga Ora – Homes and Communities . 11 January 2020.
  5. Web site: Minister responds to review of Kāinga Ora Beehive.govt.nz . 2024-08-04 . www.beehive.govt.nz . en.
  6. Web site: State housing agencies. hnzc.co.nz. Housing New Zealand Corporation. 22 July 2017.
  7. Web site: Page 2. The state builds suburbs. teara.govt.nz . Te Ara, The Encyclopedia of New Zealand. 22 July 2017.
  8. Web site: Our Statement of Intent 2017–2021. hnzc.co.nz. Housing New Zealand Corporation. 22 July 2017.
  9. Web site: State housing . . 21 September 2018.
  10. News: Bracewell-Worrall . Anna . Government to legislate 'fairness' into Housing NZ's objectives . 12 November 2021 . . 21 September 2018 . https://web.archive.org/web/20180921114556/https://www.newshub.co.nz/home/politics/2018/09/government-to-legislate-fairness-into-housing-nz-s-objectives.html . 21 September 2018. live.
  11. Web site: Kāinga Ora–Homes and Communities Act 2019 . Legislation New Zealand . . 12 November 2021 . https://web.archive.org/web/20210117161935/https://www.legislation.govt.nz/act/public/2019/0050/latest/whole.html . 17 January 2021 . live.
  12. Web site: Kāinga Ora–Homes and Communities Act 2019 . . 21 December 2023.
  13. Web site: Bishop . Chris . Independent Review into Kāinga Ora announced . Beehive.govt.nz . . 21 December 2023 . https://web.archive.org/web/20231221142228/https://www.beehive.govt.nz/release/independent-review-k%C4%81inga-ora-announced . 21 December 2023 . 18 December 2023 . live.
  14. News: Desmarais . Felix . Harder line on unruly Kāinga Ora tenants, overdue rent - government . 20 March 2024 . . . 18 March 2024 . https://web.archive.org/web/20240320001507/https://www.1news.co.nz/2024/03/18/harder-line-on-unruly-kainga-ora-tenants-overdue-rents-govt/ . 20 March 2024.
  15. News: Kāinga Ora crackdown: Government’s move cruel, Greens say . 20 March 2024 . . 18 March 2024 . https://web.archive.org/web/20240318112701/https://www.rnz.co.nz/news/political/512050/kainga-ora-crackdown-government-s-move-cruel-greens-say . 18 March 2024. live.
  16. News: Pearse . Adam . Gabel . Julia . Coughlan . Thomas . PM Christopher Luxon announces Kāinga Ora changes, new board refresh, KiwiBuild to be scrapped . 22 May 2024 . . 20 May 2024 . https://web.archive.org/web/20240521055916/https://www.nzherald.co.nz/nz/politics/pm-christopher-luxon-announces-kainga-ora-changes-new-board-refresh-kiwbuild-to-be-scrapped/WJJQFZKUTRAUXMHBICWJBK24W4/ . 21 May 2024. live.
  17. News: Lynch . Jenna . Budget 2024: Newshub reveals Government set to scrap first-home grants . 22 May 2024 . . 21 May 2024 . https://web.archive.org/web/20240521063347/https://www.newshub.co.nz/home/politics/2024/05/budget-2024-newshub-reveals-government-set-to-scrap-first-home-grants.html . 21 May 2024. live.
  18. News: Kāinga Ora CEO Andrew McKenzie quits over government changes . 2 July 2024 . . 1 July 2024 . https://web.archive.org/web/20240701042005/https://www.rnz.co.nz/news/national/520986/kainga-ora-ceo-andrew-mckenzie-quits-over-government-changes . 1 July 2024. live.
  19. News: Kāinga Ora evictions rise in crackdown on unruly tenants . 14 July 2024 . . 14 July 2024 . https://web.archive.org/web/20240713232311/https://www.rnz.co.nz/news/political/522094/kainga-ora-evictions-rise-in-crackdown-on-unruly-tenants . 13 July 2024. live.
  20. Web site: Housing New Zealand Annual Report 2001-2002. hnzc.co.nz. Housing New Zealand Corporation. 22 July 2017. dead. 28 January 2018. https://web.archive.org/web/20180128114743/https://www.hnzc.co.nz/assets/Publications/Corporate/Annual-report/annual-report-2001-02.pdf.
  21. Web site: Housing New Zealand Annual Report 2014-2015. Housing New Zealand Corporation. 22 July 2017.
  22. Web site: Who we are :: Kāinga Ora – Homes and Communities . 2023-06-20 . kaingaora.govt.nz.
  23. Web site: Simon Moutter. ceda.nz. Central Economic Development Agency. 4 August 2024.
  24. Web site: New Zealand Cabinet Ministers 2004. decisionmaker.co.nz. Decision Maker. 22 July 2017.
  25. News: Full Cabinet list. 22 July 2017. Stuff.co.nz. 31 October 2007.
  26. News: Ministerial List for Announcement for 17 November 2008. 22 July 2017. Scoop Media. 17 November 2008.
  27. Web site: Hon Phil Heatley. government.govt.nz. New Zealand Government. 22 July 2017.
  28. Web site: Hon Dr Nick Smith. parliament.govt.nz. New Zealand Government. 22 July 2017. 23 January 2019. https://web.archive.org/web/20190123223655/https://www.parliament.nz/en/mps-and-electorates/members-of-parliament/smith-nick/. dead.
  29. News: Cabinet reshuffle: List of ministers. 22 July 2017. Stuff.co.nz. 22 January 2013.
  30. Web site: Hon Paula Bennett. parliament.nz. Parliament of New Zealand. 22 July 2017.
  31. News: Bramwell. Chris. English names new Cabinet line-up. 22 July 2017. Radio New Zealand. 18 December 2016.
  32. Web site: Ministerial List. Department of the Prime Minister and Cabinet. 26 October 2017.
  33. News: PM takes housing off Phil Twyford in first major reshuffle. 27 June 2019. 27 June 2019. Stuff.co.nz.
  34. https://dpmc.govt.nz/sites/default/files/2020-07/ministerial-list-22-jul-2020.pdf Ministerial List – 22 July 2020
  35. Web site: Ministerial List Announcement 2 November 2020 .
  36. Web site: Housing New Zealand Annual Report 2005-2006. hnzc.co.nz. Housing New Zealand Corporation. 22 July 2017.
  37. Web site: Housing New Zealand Annual Report 2009-2010. hnzc.co.nz. Housing New Zealand Corporation. 22 July 2017.
  38. Web site: Housing New Zealand Annual Report 2013-2014 . hnzc.co.nz. Housing New Zealand Corporation. 22 July 2017.
  39. News: Andrew McKenzie appointed as new CEO of Housing New Zealand. 22 July 2017. Housing New Zealand Media. 16 June 2016.
  40. News: Housing NZ chief resigns. 22 July 2017. TVNZ. 16 June 2006.
  41. News: 5. Housing New Zealand Corporation—Treaty of Waitangi. 22 July 2017. Parliament of New Zealand. 7 October 2004.
  42. Web site: Housing New Zealand Annual Report 2007-2008 . hnzc.co,nz. Housing New Zealand Corporation. 22 July 2017.
  43. Web site: Housing New Zealand Annual Report 2011-2012. hnzc.co.nz. Housing New Zealand Corporation. 22 July 2017.
  44. News: Rutherford. Hamish. Housing NZ boss set for big pay rise as CEO of Metlifecare next year. 22 July 2017. Stuff Business Day. stuff.co.nz. 2 December 2015.
  45. News: O'Brien . Tova . Kāinga Ora hid the fact it was using Labour candidate Arena Williams in taxpayer-funded advertising . 12 November 2021 . . 10 November 2021 . https://web.archive.org/web/20211111073617/https://www.newshub.co.nz/home/politics/2021/11/kainga-ora-hid-the-fact-it-was-using-labour-candidate-arena-williams-in-taxpayer-funded-advertising.html . 11 November 2021. live.
  46. News: National Party wants investigation into Kāinga Ora . 12 November 2021 . . 11 November 2021 . https://web.archive.org/web/20211111105746/https://www.rnz.co.nz/news/political/455516/national-party-wants-investigation-into-kainga-ora . 11 November 2021. live.
  47. News: Lynch . Jenna . Housing Minister Megan Woods dobs Kāinga Ora in to public service watchdog over cover-up . 12 November 2021 . . 11 November 2021 . https://web.archive.org/web/20211111053229/https://www.newshub.co.nz/home/politics/2021/11/housing-minister-megan-woods-dobs-k-inga-ora-in-to-public-service-watchdog-over-cover-up.html . 11 November 2021. live.