Te Ara Mauwhare - Pathways to Home Ownership

Assist whānau into home ownership

Home ownership is out of reach for many whānau Māori. The previous census records 28 percent of Māori owning their own home compared to 50 percent of the total population.

Te Ara Mauwhare – Pathways to Home Ownership aims to find ways to reverse this trend.

Te Puni Kōkiri invites you to consider working with us to trial new approaches to assist whānau into home ownership

How can you be involved? 

  1. Read the information in this letter.
  2. Signal your interest and tell us about your idea. 
  3. Ask to receive updates once the trials are underway.

Email: MaoriHousing@tpk.govt.nz


Background Information

What is Te Ara Mauwhare – Pathways to Home Ownership about?

Te Ara Mauwhare – Pathways to Home Ownership aims to assist more whānau into home ownership. The initiative aims to test innovative ways for whānau Māori to own their own homes.

Te Puni Kōkiri will work with iwi, hapū, and other rōpū to test innovative ways to assist whānau into home ownership.

Examples may include shared equity (ownership), rent-to-buy or other innovative models.

 

Who will benefit from the Te Ara Mauwhare – Pathways to Home Ownership initiative?

Through testing innovative models, Te Ara Mauwhare - Pathways to Home Ownership aims to assist low to modest income whānau who cannot purchase their own home.

 

How much funding is available?

Budget 2017 committed $9 million spread over three years.

 

How will the funds be used?

Te Puni Kōkiri will fund Māori collectives to trial models based on innovative proposals to assist whānau into home ownership.

 

How will it work?

Te Puni Kōkiri will select at least three proposals, and work with successful rōpū to co-design the models to be trialled over three years.

Te Puni Kōkiri are aiming to get at least one proposal to explore ways to help whānau currently receiving an Accommodation Supplement or an Income Related Rent Subsidy for social housing.

The trials will be evaluated to see which models work effectively for whānau.

 

How can I get involved?

You can propose an innovative idea or concept for trialing an approach to help whānau into home ownership.

Proposals need to address the criteria below. Proposals should be no more than ten pages, including any attachments. Please do not spend a great deal of time or money in setting out your approach at this stage.

 

Can Te Puni Kōkiri help to develop proposals?

The expectation is that rōpū will be able to develop proposals that meet the criteria by using their own governance and management resources. Te Puni Kōkiri are keen to capture the ideas, and to understand your capability to deliver a trial to test that idea. 

From the ideas we receive, we will select a small number for further consideration and co-design. At that point, for the ideas selected, Te Puni Kōkiri will work more closely with rōpū to further develop the proposal. 

 

An overview of the process is set out below.

October 2017
Iwi, hapū and rōpū consider whether to propose an innovative idea or concept for the trials.

7 November 2017
Closing date for receipt of proposals.

November 2017
Proposals will be assessed by Te Puni Kōkiri and external housing experts.
The panel will select at least three or four proposals. 

December 2017
Te Puni Kōkiri will work with selected rōpū as partners in co-designing the trials to ensure they will deliver good information on whether the approach work well.
Sign a funding agreement for at least one trial.

Early 2018
Sign up additional trials.
The rōpū to put financial and governance arrangements in place, ready to start building houses.

 

Will Te Puni Kōkiri lend money to whānau to buy or build a house?

No. Te Puni Kōkiri will be working with rōpū to test their proposals to help whānau into home ownership. 

 

Can whānau apply to buy a house under this scheme?

This is some time away.  The first step is for Te Puni Kōkiri to partner with rōpū to co-design an innovative model for the trial.  Once the trials are underway, whānau can see whether they are eligible to take part in a particular trial. It will take some time to build the houses.

 

How many homes will be available?

This depends on the models being trialled, and the level of investment by potential partners.


What are the criteria for assessment of ideas and concepts?

Your proposal should demonstrate that the idea or concept addresses the following criteria.

Partnership

  • one or more Māori rōpū seeking to work with Te Puni Kōkiri
  • may involve other  groups active in Māori  housing
  • funds are provided only to the Māori rōpū.

Whānau centred

  • supports whānau with low to modest incomes into home ownership
  • builds financial capability of whānau to help them manage a mortgage and other home ownership commitments.

Whenua

  • on Māori land, or on general land (whether collectively or individually owned)
  • land is ready for building on, in terms of accessibility and infrastructure.

Sustainable

  • home ownership will be sustainable for whānau for the long term
  • addresses the complex issues preventing many whānau from owning homes
  • does not place whānau under increased financial stress.

Community based

  • addresses the needs of a community
  • not focused on the circumstances of only one whānau or on one home.

New houses

  • based on new builds to increase the supply of houses
  • houses may be built on site or relocatable.

Co-investment

  • Te Puni Kōkiri’s contribution is to provide a grant towards the cost of the trial, under a funding agreement
  • payment of the grant will be over a defined period ending by June 2020 at the latest, after which the project must be completed or self-funded
  • includes substantial co-investment by the partner or partners
  • does not involve Te Puni Kōkiri taking an equity interest (ownership) in the homes created by the trial
  • does not involve Te Puni Kōkiri providing loan finance.

Collective impact

  • leverages resources across the housing system to achieve greater collective impact
  • uses a range of finance and resources to achieve greater collective impact
  • integrates government and other resources, products and services effectively; for example may include:

    - Kāinga Whenua loans, Welcome Home Loans, KiwiSaver Homestart grants, the Housing Corporation NZ FirstHome scheme, and links with other equity sharing programmes

    - some Māori Housing Network products, although with no presumption that a concurrent application will be approved.

Innovation

  • proposal includes an innovative element such that it should be further assessed, although it does not comply with all of the other criteria above; for example, if it includes:

    - re-use or re-purposing of existing homes or buildings

    - a way of helping whānau receiving the Accommodation Supplement or Income Related Rent Subsidy (because this is a particularly challenging target group).

Value for money

  • for the whānau who will eventually own the homes
  • for the rōpū involved
  • the likelihood of public value for money, in terms of the outcomes identified in the strategies in the section above.

Likely to deliver results

  • is unlikely to be used without government investment in the trial
  • has good potential to serve as a model for future housing development
  • has particular strategic or policy value
  • has potential to be scaled up if the trial is implemented successfully.

Regulatory compliance

  • with the statutory/regulatory requirements in relation to land-use, housing construction, financial transactions
  • with relevant local government policies and plans and/or the intention to engage with local authorities to seek agreement to innovative practices
  • with the operational policy requirements of any government agencies whose products and services are part of the proposed model; and/or the intention to seek adjustments, that are worth exploring, to the operational policies of other government agencies.

How can you be involved?

  1. Read the background information in this letter.
  2. Signal your interest and tell Te Puni Kōkiri about your idea.
  3. Ask to receive updates once the trials are underway.

Email: MaoriHousing@tpk.govt.nz

Justine Pepene-HohaiaComment