GOVERNMENT IS BORROWING SO SHOULD WE

The Government has quietly lifted the borrowing limit for the newly formed Kāinga Ora social housing agency by $4.05 billion to $7.1 billion so it can build and refit almost 4,800 more state houses on top of the 6,400 already planned. – Bernard Hickey – Newsroom

https://www.newsroom.co.nz/2020/01/20/991131/kinga-oras-borrowing-limit-lifted-by-4b#


With the growing amount of international investment in our residential housing market, it makes good sense for government to invest in housing our most vulnerable.

I’ve been contending for some time that CCC needs to borrow up large and build more social housing in serious numbers.

We haven’t built in serious numbers for 45 years. With building products having a 50 year target life, our stock is coming to end of life.

CCC’s “Project 8011” is dragging and not getting the housing numbers in the CBD that are needed, something everyone seems to agree.

Council needs to be taking a lead with at least 10 social housing projects with 20 units each, contributing at least 200 units this year.

Social housing make council good money and reduces everyone’s rates so every citizen wins!

Council needs to invest up to $1.3b in 6,500 more social housing homes.

Social housing makes council good money and doesn’t cost ratepayers.

Every citizen wins.

I believe we could borrow, build and repay within 25 years and make a $45 million dollar profit each year to off set rate.

It’s important to me that we provide our citizens with the best possible housing.

We collect GST from tourists everyday in Christchurch and social housing is a perfect vehicle for pulling that tax money back into our community in a way that makes sure every citizen gets a return.

Some will argue that this would put council in competition with the private market. It’s just not true. The private market just isn’t interested in this part of the market. The market is also expanding, so council is only ‘joining’ the market.

Some contend that social housing is a state not civic role. Two points, keeping the state in check means providing competitive pressure.

Secondly, state profits go back to the state. It’s important to remember that many social housing tenants are hard working locals, like Stephen, who earn local money and we want profits returned to our community.

Civic social housing profits all our citizens.

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