Certainty to community housing

Tax provisions to ensure community housing providers can continue to offer housing support to New Zealanders will give the sector the certainty it needs to keep growing, say Ministers Paula Bennett and Todd McClay.

'Some community housing providers risk losing their charitable status by supporting people into home ownership,” says Social Housing Minister Paula Bennett.

'We are of the view these providers give invaluable service and as such we want to ensure they are not worse off financially."

'In practical terms, the loss of charitable status means losing the income tax exemption and donee status, which could impact their ability to attract philanthropic funding,” says Revenue Minister Todd McClay.

A point of entry test and new eligibility criteria will be introduced, centred on the income and assets of the community housing providers' clients, and will match the KiwiSaver HomeStart programme criteria.

This means that the income threshold has been set at $80,000 for an individual and $120,000 for a couple. For first-home buyers, there is no asset test.

The measure demonstrates the Government's support of the community housing sector at the early stages of the Social Housing Reform Programme.

One provider has been de-registered as a charity following a decision by Charities Services, supported by a High Court decision, that while assisting low-income people renting a property was charitable, assisting people into home ownership is not.

'Housing need exists on a continuum, with homeless and social housing at one end through to affordable private rental and ownership at the other,” says Paula.

'Community housing providers are playing an important role in helping people move along the pathway towards housing independence, and ensuring that social housing is available for those most in need.”

'We intend to introduce amending legislation soon, applying from 14 April 2014, the starting point of the Social Housing Reform Programme,” says Todd.

Source: Office of Paula Bennett and Todd McClay.

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