The Government has launched the first round of its Flexible Fund, an initiative aimed at increasing the supply of social housing and affordable rentals in areas where need is greatest.
The first stage of applications closes on 24 April, with the fund expected to support the development of up to 770 new homes for people experiencing significant housing need.
The programme will prioritise locations where demand for housing is particularly high, including the Far North, South Auckland, Eastern Bay of Plenty, Gisborne–Tairāwhiti and Hastings, as well as major centres such as Hamilton, Tauranga, Wellington and Christchurch.
The Flexible Fund is part of a wider effort to expand social housing supply and reduce the number of families living in emergency accommodation such as motels.
Housing Minister Chris Bishop said the programme was designed to simplify how social and affordable housing was funded.
“Last year we established the Flexible Fund to replace the confusing patchwork of social and affordable housing programmes with a single, contestable fund focused on delivering the right homes, in the right places for the people who need them most,” he said.
Mr Bishop said the new approach relied on detailed housing data and local insights to identify where supply is most needed. This allows community housing providers to propose projects that respond to local demand rather than fitting within rigid programme rules.
Applicants will need to demonstrate strong delivery capability, financial strength, alignment with local housing needs and value for money in order to secure funding.
A focus on affordable rentals
Mr Bishop said affordable rentals, which allow people to pay below-market rent, were a particularly important part of the system.
“They are a missing link in the social housing system. There should be an intermediate option between traditional social housing, where people usually pay 25%, and market rentals,” he said.
This type of housing is designed for households who may not qualify for traditional social housing but still struggle to afford market rents.
Over time, increasing the supply of social and affordable housing can help reduce pressure on emergency accommodation and provide more stable housing options for families.
Programmes aimed at expanding housing supply can gradually influence both rental availability and housing demand in certain regions.
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