The shortlist of possible buyers for Tauranga's state houses is four, with the Government today requesting formal proposals to buy and manage state housing in Tauranga and Invercargill.

The Pact Group wants to buy the Invercargill houses, while Accessible Properties, Hapori Connect Tauranga and Kainga Community Housing Partners for Tauranga are all vying for the Tauranga houses.

The Government announced in January 2015 that it intended selling 1000 to 2000 Housing New Zealand properties and tenancies to registered Community Housing Providers.

The shortlisted respondents submitted high-quality Expressions of Interest for the 348 properties and tenancies in Invercargill and 1124 properties and tenancies in Tauranga, says Housing New Zealand Minister Bill English.

'These transactions are about tenants, ensuring they are being housed in properties that suit their needs and supporting those who are able to transition back into independence,” says Bill.

'I was particularly pleased at the number of EOI respondents with the capability, understanding and motivation to deliver a better service for tenants.”

Social Housing Minister Paula Bennett says the Government is changing the social housing system because it wants it to be aspirational instead of generational.

'We expect the community housing sector should work with financiers and asset managers to share expertise and figure out innovative new ways of providing housing for our most vulnerable. Those on the shortlist have been thinking creatively and seriously about how to do this,” says Paula.

The shortlisted will now proceed to the next stage in the procurement process, Request for Proposals, which will close May 30 for Invercargill and June seven for Tauranga.

The Government expects to announce the preferred bidder for each region in the third quarter of this year.

Bay of Plenty MP Todd Muller says the Government is looking forward to receiving comprehensive proposals from the three Tauranga respondents.

'We are looking for social housing services providers with better approaches to supporting social housing tenants and managing properties,” says Todd.

'I thank all providers involved in this process for their interest – we share a commitment to the delivery of higher quality social housing for New Zealanders in need.

'The announcement of this shortlist is the next step in getting more and improved social housing here in the Bay of Plenty.

'We're working with community groups, non-government agencies, and the private sector to solve some of New Zealand's longstanding challenges,” says Todd.