Tauranga is to become one of only two regions in New Zealand where state houses will be transferred to registered Community Housing Providers (CHPs).

Invercargill is the other region, as revealed by Housing New Zealand Minister Bill English and Social Housing Minister Paula Bennett today.

Tauranga and Invercargill have been named as the first two regions where state houses will be transferred to registered Community Housing Providers.

'This is another important step to creating a more effective and efficient social housing sector with more housing providers supporting tenants and their needs,” says Bill.

The government's Social Housing Reform Programme announced in January comprises the transfer of 1000-2000 houses to become registered CHPs over the next year.

Today's announcement comes as senior officials from the Ministry of Social Development and the Treasury visit Tauranga today to talk with local stakeholders with an interest in social housing.

'Tauranga and Invercargill have been chosen because they have stable demand for social housing, and active community housing providers keen to consider the next steps,” says Paula. 'Providers in other regions are also interested.

'This is a great opportunity for these areas to deliver services locally.

'We know that vulnerable New Zealanders do better when services are delivered by local people for local people. Community ownership for social housing in Tauranga and Invercargill will make a significant difference.”

No decisions have been made on the number of houses to be transferred. The next step is to consult with iwi and hapū in both regions to identify particular interests under the Treaty of Waitangi, before deciding whether to proceed to market sounding.

'Existing tenants will continue to be housed for the duration of their need and their rights will not be affected if their landlord changes,” adds Bill.

'Houses will not be transferred unless tenants get better services and taxpayers get fair and reasonable value.”

Transfer of houses will not affect the tenants' rent or their eligibility for subsidised housing, and properties transferred as social houses will also have to stay as social housing, unless the government agrees otherwise.

Paula explains: 'There are a number of tenants in these regions with long- and medium-term needs, which gives CHPs the opportunity to integrate housing with other services they may provide, like mental health and disability services or budgeting support.

'Tenants will continue to be supported to independence, where appropriate, so that social housing remains available for those most in need.”

Registered CHPs can partner with other organisations to acquire and develop social housing.

'In both regions, Housing New Zealand owns a significant number of houses so there is potential for more than one organisation to acquire houses for community ownership,” adds Bill.

Since April last year, Government-registered CHPs have been eligible to receive the Income Related Rent Subsidy, previously only available for people living in HNZ houses.

Once decisions are made, any commercial transfer process will be an open and competitive process that is likely to take 9-12 months.

The Government funds around 62,000 social housing places through the Income-Related Rent Subsidy. In total this supports more than 180,000 people.

In total, there are around 193,000 people in Housing New Zealand houses. There are currently around 5,000 applicants on the social housing register. One in four of these are already in a social house and want to move to another one.

Housing New Zealand owns or manages around 68,000 houses. Of these, 3,300 Housing New Zealand houses are let at market rent. Some 2,300 Housing New Zealand houses are currently vacant, with 70 per cent unfit for use.

Around 1,500 properties are used for Community Group Housing. There are currently 30 registered Community Housing Providers.