Tauranga Community Housing trust manager Chris Johnstone is welcoming the announcement of tax provisions for community housing trusts.

'I guess we've all been uncertain for some time now around our activity in terms of delivery of housing services and the potential to affect our charitable trust status,” says Chris. 'Some of us have been quite concerned. Some of us limited our activity.

Social Housing Minister Paula Bennett opens the Clarke Street community housing in Tauranga with Tauranga MP Simon Bridges and Tauranga Mayor Stuart Crosby. Photo: Andrew Campbell.

'On the surface we are very pleased to see Minister Bennett has responded and has taken the concerns that we and others have raised.”

Social Housing minster Paula Bennett and Revenue Minister Todd McClay have introduced a point of entry test and new eligibility criteria will be introduced for community housing providers' clients.

They are also announcing tax provisions ensuring community housing providers can continue to offer housing support to New Zealanders intended to give the sector the certainty it needs to keep growing, say the ministers.

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

'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 Paula.

'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.”

She says 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.

Todd says amending legislation will be introduced soon, applying from April 14, 2014, the starting point of the social housing reform programme.

Chris says it's been a concern among social housing providers, and it was included in the conversation with Paula when she opened the Tauranga Community Housing Trusts's Clarke Street housing in May.