Pursuant to section 102(2)(b) of the Housing Restructuring and Tenancy Matters Act 1992 ("Act"), the Minister of Finance, the Minister of Housing and the Minister for Social Development ("joint Ministers"), after consultation with the Agency appointed under section 100 of the Act and the Regulatory Authority appointed under section 159 of the Act, give the following direction to the Agency.
D i r e c t i o n
1. Title-This direction is the Ministerial Direction on Continued Eligibility for Social Housing.
2. Commencement-This direction comes into force on 1 July 2014.
3. Interpretation-In this direction, unless the context otherwise requires:
accessibility means whether a person has access to housing other than social housing.
agency means the social housing agency or agencies appointed under section 100 of the Housing Restructuring and Tenancy Matters Act 1992.
affordability means whether a person, including any other person who would, together with the person, be an applicable person in relation to any social housing that may be allocated to the person, can afford (with any financial assistance and resources available to them) suitable housing, other than social housing, in accordance with the calculation in Schedule 1.
applicable person, in relation to any social housing, means every person to whom the housing is or is to be let, and includes every person who is the spouse or partner of such a person.
main benefit means a main benefit under this Act as defined in section 3(1) of the Social Security Act 1964.
ordinarily resident in New Zealand, in relation to any person, does not include being unlawfully resident in New Zealand.
social housing means Housing New Zealand housing or community housing.
sustainability means the likelihood of a person being able to retain housing other than social housing, taking into account factors such as a person's money management skills and social skills, and history of transience.
4. Continued Eligibility for Social Housing-(1) For a person to continue to be eligible to be allocated social housing he or she:
(a) must meet the residency qualifications in clause 5; and
(b) must meet the income and asset thresholds in clause 6, except as provided for in subclause 6.3; and
(c) must have a housing need of a kind set out in clause 7.
5. Residential Qualifications-(1) The basic residential qualifications are that the person is ordinarily resident in
New Zealand and:
(a) is a New Zealand citizen; or
(b) is a permanent resident who has been in New Zealand for more than two years since he or she became a permanent resident.
(2) A person is deemed to have met the basic residential qualifications in subclause 5.1 if he or she is eligible for, and receiving, a main benefit.
6. Income and Asset Thresholds-(1) A person must continue to meet the income and asset thresholds in Schedule 2.
(2) The income and assets of a person include the income and assets of any other person who would, together with the person, be an applicable person in relation to any social housing that may be allocated to the person.
(3) Where a person does not continue to meet the income and asset thresholds in subclause 6.1 but continues to meet the criteria in clause 7, the agency may, in its discretion, determine that person as eligible for social housing.
(4) Despite the definition of cash assets in section 61E of the Social Security Act 1964, if the agency is satisfied that a person, including an applicable person, has not realised any assets available for the personal use of the person or the applicable
person, the agency may treat those assets as the cash assets of the person or applicable person for the purposes of
Schedule 2.
7. Housing Need-(1) A person must continue to have a persistent housing need that is:
(a) serious; or
(b) severe and must be addressed immediately.
(2) In determining whether a person continues to have a housing need in subclause 7.1, the agency must have regard to the following factors:
(a) Affordability;
(b) accessibility;
(c) sustainability.
Schedule 1
Calculation of Affordability Formula
A reference to "person" includes any other person who would, together with the person, be an applicable person in relation to any social housing that may be allocated to the person.
Step number Description Total $
Step 1 Calculate net1 weekly income of the person (including the weekly rate of any family tax credit received) Total A - income including Family Tax Credit received
Step 2 Calculate lower quartile weekly rent in the area the person needs to live minus the weekly amount of Accommodation Supplement under the Social Security Act 1964 the person may be eligible to receive Total B - lower quartile rent minus calculated Accommodation Supplement
Step 3 Subtract Total B from Total A Total A - Total B = Total C
Step 4 Divide Total C by the weekly unabated rate of main benefit the person is receiving or would receive for that household type (including any Family Tax Credit) x 100 Residual income %
Schedule 2
Income and Asset Thresholds
Part 1. Income
(a) For single persons who have no spouse or partner and no dependent children:
(i) 1.5 x the net2 weekly living alone rate of New Zealand Superannuation set out in Schedule 1, clause 1(a) of the
New Zealand Superannuation and Retirement Income Act 2001.
(b) For any other persons:
(i) 1.5 x the net3 weekly married rate of New Zealand Superannuation set out in Schedule 1, clause 1(c) of the
New Zealand Superannuation and Retirement Income Act 2001.
Part 2. Assets
A person must have cash assets (within the meaning of section 61E of the Social Security Act 1964) under 10%
of the national median house price as determined and updated by the Agency, from time to time, with reference to the Real Estate Institute of New Zealand (REINZ).
Dated at Wellington this 11th day of June 2014.
HON BILL ENGLISH, Minister of Finance.
HON PAULA BENNETT, Minister for Social Development.
HON DR NICK SMITH, Minister of Housing.
Explanatory Note
This note is not part of the direction, but is intended to indicate its general effect.
This direction by the joint Ministers sets the continued eligibility criteria for social housing. The Ministry of Social Development as the Social Housing Agency will use the affordability, accessibility and sustainability criteria along with the residential qualification and income and asset threshold criteria to review and determine continued eligibility for existing tenants.
This direction is effective from 1 July 2014.
Key to Annotation
1After the deduction of income tax under the Income Tax Act 2007.
2After the deduction of income tax under the Income Tax Act 2007.
3After the deduction of income tax under the Income Tax Act 2007.