Major release breaks one-hour budget embargo | May 19, 2022

Price caps on eligibility for first home subsidies will be increased in many parts of the country, for both existing and new construction. Property prices and income limits will also be reviewed every six months to ensure they remain up to date.

“The Kāinga Whenua loan cap will also be increased from $200,000 to $500,000 to provide more choice and opportunity for people building, moving or buying a home on whenua Māori,” Housing Minister Megan said. Woods.

In Auckland, the price cap for existing properties for a first home subsidy will increase from $625,000 to $875,000. In Wellington, the increase is $550,000 to $750,000. Some regions, such as the Far North, will not have an increase for existing properties but an increase in the cap for new construction (from $500,000 to $675,000).

A new program has been created, the Affordable Housing Fund, to “support the development of new affordable housing for low-to-moderate and whānau families in areas facing the greatest housing supply and affordability challenges. “, said Megan Woods.

The Affordable Housing Fund was funded by the $350 million Residential Development Response Fund (RDRF) announced in 2020 to support the construction sector during the initial COVID-19 lockdown, which was unnecessary . The government will convert $200 million from the RDRF into non-recyclable funding to make the Affordable Housing Fund available as grants.

The first stage of the Affordable Housing Fund will provide $50 million in grants to non-profit organizations to provide affordable rental housing in Auckland, Tauranga, Rotorua, Napier/Hastings, Wellington and Nelson/Tasman.

Jacob L. Thornton