Government funding that was committed to assist the Christchurch City Council in their housing objectives will be used to establish a shared equity home ownership initiative, says Social Housing Minister Amy Adams.
The Government committed funding in Budget 2015 to support the Christchurch City Council to achieve their housing objectives. The council has decided to use $3 million of this funding to establish the Christchurch Housing Fund to help Christchurch residents on modest incomes to buy their own home.
“The Christchurch City Council has proposed to use $3 million in Government funding committed to supporting their housing objectives to establish the Christchurch Housing Fund,” says Ms Adams.
“The council has designed this initiative and will be responsible for its implementation. It aims to help aspiring Christchurch homeowners by providing a second mortgage up to 40 per cent of their house purchase price, which will make their bank mortgage more affordable.”
The Christchurch City Council will arrange to match the Government’s funding, bringing the total of the fund to at least $6 million. The council estimates that between 25-40 households would be assisted by the Christchurch Housing Fund in the first three years of operation.
The fund will use several criteria for deciding who will receive this financial assistance. It will prioritise households at or below the median income level for Christchurch, households with children, and those with existing savings. The price cap on applicable housing will be the same as that for KiwiSaver HomeStart Grants – $500,000 for existing properties or $550,000 for new builds.