Pursuant to section 102(1A) of the Housing Restructuring and Tenancy Matters Act 1992, the Minister for Social Housing (exercising the powers of the Minister responsible for the Social Housing Agency under the authority of the Prime Minister), after consultation with the Minister of Finance and the Minister of Housing, gives the Social Housing Agency the following direction.

D i r e c t i o n

1. Title—This direction is the Ministerial Direction on Tailored Agreements with Social Housing Providers.

2. Commencement—This direction comes into force on 10 August 2015.

3. Interpretation—(1) In this direction, unless the context otherwise requires:

Act means the Housing Restructuring and Tenancy Matters Act 1992.

demand profile means the need for social housing within a particular area based on the number of persons from time to time assessed by the agency as eligible for, but not yet allocated, social housing in that area.

indexed rate means a rate that is adjusted from time to time by reference to movements in the all groups New Zealand Consumer’s Price Index or some other agreed reference index.

phased payments mean periodical payments in phased stages over an agreed period within the term of a tailored agreement.

rate means the price for the provision, by or on behalf of a social housing provider, of any particular premises to be used as social housing.

vacant, in relation to any social housing, means unoccupied and not subject to a tenancy.

(2) Terms used in this direction and not defined in subclause (1) but defined in section 2 or, where the context requires, section 71 or 91 of the Act have the same meanings in this direction.

4. Purposes—The purposes of this direction (as set out in section 102(1B) of the Act) are to enable flexible purchasing approaches by the agency and to promote social housing outcomes that reflect the diverse needs of tenants and the diverse range of existing social housing providers and potential providers.

5. Application—(1) This direction applies when the agency is considering whether to enter, proposes to enter, or enters, into a tailored agreement under section 137A of the Act with one or more social housing providers for the provision of social housing and any related services.

(2) For the avoidance of doubt, nothing in this direction applies to the calculation of the rent payable by any tenant of social housing.

6. Requirements preliminary to tailored agreements—When the agency is considering whether to enter into any tailored agreement, its consideration must include:

1. the demand profiles for social housing;
2. the needs of tenants for different kinds of social housing (in terms of size, amenities, accessibility for people with disabilities, health, safety, and other needs);
3. the needs of tenants for related services;
4. the range and availability of social housing providers and potential providers to meet the needs identified under paragraphs (a) to (c).

7. Tailored agreements to meet purposes and needs—(1) In negotiating for and entering into a tailored agreement, the agency must ensure that the agreement:

1. is for the purposes set out in clause 4; and
2. will as far as possible meet the needs (identified under clause 6) of tenants, or a proportion of them, in one or more particular areas.

(2) The agency must also ensure that a tailored agreement contains the matters set out in clause 8(1).

8. Matters to be included in a tailored agreement—(1) A tailored agreement must contain terms and conditions:

1. specifying the period over which the social housing provider must provide social housing (being a period suitable to the demand profile of the area or areas in which the social housing is to be provided);
2. specifying that the tailored agreement relates to:
   1. all social housing and related services to be provided by the social housing provider in a particular area and a description of that housing and area and the details of those services; or
   2. only specified social housing or specified related services (or both) to be provided by the social housing provider in a particular area and a description of that housing and area and the details of those services;
3. specifying whether the tailored agreement relates to existing premises or anticipated premises (or both) and a description of those premises;
4. specifying when the social housing or related services (or both) will start to be provided (which, in the case of anticipated premises, may include provision for delays for future contingencies);
5. specifying how the price to be paid by the agency for the provision of the social housing or related services (or both) under the tailored agreement will be calculated;
6. specifying the manner in which and the times that price or parts of it will be paid by the agency to the social housing provider.

(2) A tailored agreement may contain other terms and conditions that are not inconsistent with the purposes set out in clause 4.

9. Terms as to price that may be included in a tailored agreement—(1) For the purpose of clause 8(1)(e), the terms and conditions of a tailored agreement may include provisions requiring the agency to:

1. pay an agreed amount or amounts as the price for providing social housing and related services (or both), whether or not the amount or amounts agreed are more or less than the difference between the market rents and income-related rents for the housing;
2. pay an agreed amount or amounts for successful achievement of an objective or objectives related to the provision of social housing defined in the tailored agreement;
3. pay an agreed amount or amounts in respect of existing premises that are to be provided as social housing under the tailored agreement for periods that they are vacant;
4. pay different agreed amounts for related services for different tenants or tenancy situations;
5. pay fixed or indexed rates for any premises identified in the tailored agreement that may be different to the market rent for the premises;
6. pay for the provision, by the social housing provider, of social housing that is not owned by the social housing provider.

(2) Subclause (1) does not limit the generality of clause 8(1)(e).

10. Payment terms that may be included in a tailored agreement—(1) For the purpose of clause 8(1)(f), a tailored agreement may include terms and conditions requiring the agency to pay the price for the provision of social housing and related services (or both) in any, or in a combination of any, of the following ways:

1. By phased payments;
2. by one or more lump sum payment or payments;
3. by payment in advance of the social housing or related services (or both) being provided to tenants by the social housing provider;
4. by payment on the successful achievement of an outcome or outcomes that are defined in the tailored agreement.

(2) Subclause (1) does not limit the generality of clause 8(1)(f).

Dated at Wellington this 29th day of July 2015.

Hon PAULA BENNETT, Minister for Social Housing.

Explanatory Note

This note is not part of the direction, but is intended to indicate its general effect.

This direction to the social housing agency under the Housing Restructuring and Tenancy Matters Act 1992 (“the Act”) is given by the Minister for Social Housing exercising the powers of the Minister responsible for the social housing agency under an authority given by the Prime Minister dated the 17th day of November 2014. The direction comes into force on 10 August 2015.

The direction, in accordance with which the agency is authorised to enter into tailored agreements for the provision of social housing, is broadly enabling. It sets out matters that the agency must include in its consideration of whether to enter into tailored agreements, and matters that the agency must ensure are included in a tailored agreement with a social housing provider. These include that the agreement is consistent with the purpose of promoting social housing outcomes that reflect the diverse needs of tenants and the diverse range of existing social housing providers and potential providers. Nothing in the direction requires the agency to enter into tailored agreements or affects the way in which a social housing tenant’s rent is to be calculated under the Act.