One of Kāinga Ora’s most controversial developments in Northland is now under review, as the debt-laden agency is required to improve its financial performance.
Kāinga Ora is building 154 new state houses in Te Tai Tokerau as part of a $146 million capital build in the area for 2024-25.
But any new social housing not contracted for delivery by June 30, 2025, is now under assessment, said Northland regional director Jeff Murray.
This means a high-density development planned for Ruakākā, described by one neighbour as a “battery hen development”, is now up for review.
The public housing landlord started planning the Ruakākā development late last year, proposing to replace 16 state houses with 50 new ones in a block across Tiki Pl, Tamingi St and Peter Snell Rd.
Neighbours were concerned the development would cause upheaval to the existing Kāinga Ora residents, many of whom are elderly, as well as disrupting the close-knit feel of the village.
Murray said the community will be kept informed as projects are assessed and decisions are made.
“This process is to ensure best value for money and alignment with the Ministry of Housing and Urban Development’s priority locations.”
It comes after Housing Minister Chris Bishop announced a shake-up of Kāinga Ora and its board, after a damning report by Sir Bill English found it was looking at yearly deficits of $700M.
Ruakākā resident Tui Roman Snr spoke up for fellow Kāinga Ora residents who were impacted by the 50-house proposal but too afraid to voice their concerns.
She is pleased the controversial project will be reviewed and hoped it would be dropped altogether.
“I think it’s good news for the community, that’s my view,” she said. “We’re living in hope still.”
But Roman is concerned the proposal has already caused disruption to the community, including Kāinga Ora tenants who have been moved out of their homes.
Of the 16 state houses, about 10 are now empty and should be filled as soon as possible, she said. The coalition Government is also pushing for empty state houses to be filled with urgency.
Other Northland projects may also be cut
Kāinga Ora’s building programme for Northland has been focused near jobs, schools, transport and services, with the bulk being built in central Whangārei.
“Kāinga Ora has been building new social housing in Northland at pace in line with the Government’s Public Housing Plan,” Murray said.
The organisation is on track to meet targets in this plan for all developments set to be finished before June 30, 2025, he said.
Projects that will go ahead include a 55-home development on Wanaka St, on the site of the former Tikipunga Tavern.
The development is due to be finished in early August and members of the community will be invited to view the homes before whānau move in.
Another development of 95 homes - which was to be the largest social housing development in Northland - is only guaranteed to see stage one built.
The $73m project for the Casa Blanca Motel site on Kauika Rd, in the Avenues, was announced with fanfare by then-Housing Minister Megan Woods in April 2023.
Work has now started on the first stage, for 27 homes, but remaining stages will also be reviewed.
Another controversial development, for multi-storey buildings on Cairnfield Rd in Kensington, was put on hold at the start of the year.
Denise Piper is a news reporter for the Northern Advocate, focusing on health and business. She has more than 20 years in journalism and is passionate about covering stories that make a difference.
- NZ Herald