Auckland Council’s governing body will vote on Thursday to enter a long-term partnership with the Selwyn Foundation for the management & operation of the council’s Housing for Older People (HfOP) service.
The council would hold 49% and the foundation 51% in a limited partnership. The joint venture would register as a class 1 landlord and become a community housing provider eligible to receive income-related rent subsidy funding.
Council-controlled Development Auckland Ltd (Panuku) would be delegated the task of implementing the council’s high level project plan.
The council has already resolved to establish a partnership to deliver these services, has agreed a series of objectives and has been working with Selwyn to progress business planning for the partnership.
The council has 1412 units at 62 sites in the north, south & west of the region, covering a total 26ha. Those housing assets will be leased to the joint venture for an initial period of 25 years at a peppercorn rent – with 3 rights of renewal, each for 25 years. The council will retain ownership of the portfolio land, subject to any proposed redevelopment & portfolio rationalisation.
Under the partnership proposal, the council will make financial provision in its 2017-18 annual plan & 2018-28 long-term plan to transfer budgeted funds to the joint venture for capital renewals and the establishment of a $20 million development funding facility, which Panuku would administered to support development & growth of the portfolio.
The council & Selwyn expect to have their joint venture operating by next March, though the council might continue to provide some services & contracts for a further interim period.
The council has set objectives to maintain at least the current level of housing for older people – the figure is at least 1452 units – and to increase the total number of units, subject to the availability of additional funding. It’s also set objectives to improve the quality of the current stock and, through intensification, to seek opportunities to help grow social housing.
The council agreed in June last year to seek partners to deliver the housing for older people services and endorsed Selwyn as its preferred partner in December. That model was assessed against retaining the status quo or selling or gifting the council portfolio to a community housing provider.
The medium- to long-term strategy is to develop sites identified for intensification. Need is expected to remain high in central Auckland and the outlying local board areas of Rodney, Hibiscus & Bays, Upper Harbour, Henderson-Massey, Howick, Manurewa, Papakura & Franklin.
Design features established in the model include:
- an average size of about 45m2 for new units
- up to 20% provision for couple units
- apartment buildings with a maximum of 10 units/floor, a double-loaded corridor & a communal landing area
- design for a maximum of 40 residents/block with parking, outdoor area & communal space (except for villages of fewer than 15 apartments)
- tenant parking ratio of no less than 1:3 units, and
- secure scooter parking near the front door.
The business planning has included an ongoing commitment to active & productive engagement and development of a working relationship with Maori, including mana whenua iwi & hapu and Maori residents & ratepayers.
The joint venture will have a role in giving effect to outcomes directed by the council’s Maori responsiveness framework, which includes recognition & protection of Maori rights & interests within Tamaki Makaurau and contributing to the needs & aspirations of Maori.
Council governing body agenda item & related documents, 25 August 2016:
11, Housing for older people: Partnership for the management & operation of the housing for older people service and adoption of the high level project plan
Council HfOP objectives June 2015
Proposed HfOP parnership structure
HfOP strategic business case
HfOP HLPP version for council
HfOP design brief
Attribution: Council agenda.