Christchurch council mooting $30 million loan to build 130 new social houses

Christchurch City Council is considering lending $30 million to the Ōtautahi Community Housing Trust so it can build 130 more social houses in the city.

Council social, community development and housing committee chairman Phil Clearwater said additional housing stock was needed and the proposed loan was one way to achieve the increase.

The trust – an independent community housing provider that provides social housing services through properties it leases from the council – intends to use the loan to build 130 new social houses.

It will also replace 50 of the existing council units it leases with new units.

“The net effect will be 180 new units, which will benefit both existing tenants and those currently on the Ministry of Social Development’s social housing waitlist,” Clearwater said.

If the loan is approved, the council will negotiate commercial terms with the trust and any loan will be secured against trust assets.

The trust will need to pay back the loan and all council costs, with repayments starting before the new units are complete.

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Source: Stuff