Kāinga Ora is spending almost $150 million on new and renovated state houses in Northland

Kāinga Ora has revealed its annual budget for building state houses in Northland alone: ​​$146 million.

Northland Regional Director Jeff Murray announced the 2024-2025 capital budget as part of a Northern lawyer investigation into Kāinga Ora construction work in Te Tai Tokerau.

There are 141 new homes under construction in Northland and a further 253 homes are in the approval phase, expected to be completed by the end of next year.

By comparison, the $146 million budget is 25 per cent larger than Whangārei District Council’s 2024-2025 capital expenditure of $117 million, as forecast in the long-term plan.

Murray said Kāinga Ora’s expected capital budget is for new and renovated homes in Northland, to cover approved redevelopment projects at tender stage or later.

In addition to construction costs, the budget covers all construction costs, including municipal costs, professional fees and demolition costs, although the expenses do not necessarily correspond to the total cost of building a house due to the time it takes, he said.

Kāinga Ora is building a large-scale new home in Northland to meet the dire need, with more than 1,200 whānau waiting for a state home, according to Ministry of Social Development figures as of December 2023.

Murray said the focus is on new homes close to where jobs and services are, including central Whangārei, Ruakākā, Kaitāia, Kāeo, Kaikohe, Kerikeri and Dargaville, with old state houses being replaced with three houses on the same site under district plan rules. allow.

Of the approximately 1,400 Kāinga Ora homes in Northland, just over 100 are not in use, Murray said.

As of February 29, 2024, 43 homes were vacant while preparations were made for new customers to move in, 13 homes were unavailable for rental pending decisions on future use and 57 homes were taken out of service – such as replacement or major repairs, he says . said.

Meanwhile, the Crown agency has already let the first phase of a social housing development at Tiaki Rise in Tikipunga, delivered in partnership with construction partner Barrett Homes.

The first phase was completed in December 2023 and all 12 homes have been rented. The second phase of a further twelve homes will be completed in the coming weeks.

The final phase of another 11 homes will be completed in the second half of 2024.

Denise Piper is a news reporter for the Northern lawyer, with an emphasis on health and business. She has more than twenty years of experience in journalism and is passionate about writing stories that make a difference.