Community Housing Provider

We set up a Community Housing Provider (CHP) to manage the city’s social housing. This will enable access to funding so that more social housing can be built, and access to a rent subsidy for eligible new tenants.

Background

The Council’s social housing service, City Housing, had long-standing financial challenges. In June 2022, following community consultation, the Council agreed to establish a Community Housing Provider (CHP) to help resolve these financial challenges.

A CHP enables:

  • more new social housing to be built in Wellington
  • access to the government's Income Related Rent Subsidy (IRRS) for new, eligible tenants, improving tenant wellbeing
  • long-term resolution of City Housing’s financial challenges, at a lower cost to the Council and ratepayers.

A CHP is a regulated entity that provides social, affordable and/or community housing and is registered with the Community Housing Regulatory Authority (CHRA).

The Council still owns the majority of its properties and leases these to the CHP.

Te Toi Mahana took over tenancy management, activities, and maintenance on 1 August 2023.

As part of the set-up of Te Toi Mahana, the Council will gift it $10m of property and $23m funds, to help it build new social housing.

The Council remains responsible for delivering the major housing upgrade programme (HUP2) that it has agreed with central government, and the implementation of Healthy Homes upgrades.

Tenants

Existing tenants

Tenants of City Housing transferred over to Te Toi Mahana on their existing tenancy agreements and rent.

  • Tenants will continue to have a tenancy advisor and access to the same support and services that they received from City Housing.
  • The Council’s core rental terms (including the Affordable Rent Limit subsidy, rent caps, and the 80+rent freeze) transferred across to Te Toi Mahana.
  • A new tenant support fund will be set up, to help tenants who are experiencing financial hardship. 

During the transition to Te Toi Mahana, we kept tenants informed via the tenant newsletter, drop-in sessions, tenancy advisors, mail, the Tenant and Stakeholder Feedback Panel, and via information sheets. We also ran 11 drop-in sessions for tenants at community spaces across Pōneke in May 2023.

Future tenants

Te Toi Mahana will source new tenants from the MSD Public Housing Register.

New, eligible tenants will have access to the government’s Income Related Rent Subsidy (IRRS). The IRRS caps tenants’ rent at 25% of a person’s income.

Project delivery

Stage 1: July 2022–December 2022 (complete)

  • Council decided on the design and set-up details for the CHP.
  • First six CHP Trustee appointments made.

Stage 2: January 2023–August 2023 (complete)

  • Final three CHP Trustees appointed.
  • Chief Executive and senior staff for the CHP recruited.
  • Employment change process for City Housing staff completed.
  • CHP registration with the Community Housing Regulatory Authority completed.
  • Housing lease agreement between the Council and CHP.
  • Tenants informed of progress and introduced to the new CHP.

Stage 3: August 2023 onwards

  • CHP takes over tenancy services and facilities maintenance from City Housing.

Public consultation

Public consultation on options to make council housing financially sustainable was held in April–May 2022.

See our Annual Plan 2022/23 submission results and the future of Wellington's council housing results.

Council decision papers and minutes

Council papers related to CHP decisions include the case for change, public consultation, detailed design, establishment and transition.

March 2023

March 2023 paper to Council to finalise CHP lease, funding, and reporting agreements (page 21 onwards).

December 2022

December 2022 paper to Council to sign off the Trust Deed and settle the Trust (page 27 onwards).

September 2022

September 2022 paper to Social/Cultural Committee covers the remaining Trust Deed provisions and initial advice on monitoring and reporting framework (see pages 59-81).

August 2022

August 2022 paper to Social/Cultural Committee follows community consultation and covers the substantive provisions of the Trust Deed and Lease Agreement, support for existing tenants who transfer to the CHP, and overview of transition plan (see pages 29-66).

June 2022 meeting of Annual Plan/LTP Committee to adopt LPT amendment.

June 2022

June 2022 meeting of Annual Plan/LTP Committee to deliberate post community consultation (page 23 onwards).

May 2022

May 2022 meetings of Annual Plan/LTP Committee for oral hearings of public submissions.

April 2022

From April-May 2022 the community consultation process on the LTP amendment ran. Key documents here are the summary consultation document and the final LTP amendment adopted following consultation.

April 2022 paper to Annual Plan/LTP Committee on LTP amendment consultation material post audit (page 7 onwards).

March 2022

March 2022 paper to Annual Plan/LTP Committee on draft LTP amendment consultation material before sending to audit (page 14 onwards).

February 2022

Social/Cultural paper on a Notice of Motion to provide temporary support to tenants while wider sustainability work continued.

February 2022 paper to Annual Plan/LTP Committee on LTP amendments (page 7 onwards).

October 2021

October 2021 paper to the Social/Cultural Committee is the first set of Council decisions on core aspects of the CHP’s design and also covers off the decisions to consult with the community on options for change (see pages 21-57).