Housing Acceleration Fund
The $3.8 billion Housing Acceleration Fund (the fund) was established to increase the pace, scale, diversity and affordability of new housing supply for buyers and renters.
About the fund
The fund is helping to drive delivery of a wide range of homes, in places they are needed at affordable prices, by:
- unlocking more land for housing development, particularly in locations close to jobs, public transport and amenities
- supporting the provision of critical infrastructure needed for that housing development
- supporting the delivery of a wider mix of housing, for both owning and renting, that is affordable for low-to-moderate income households.
The key components of the fund are:
- Infrastructure Acceleration Fund
- Kāinga Ora - Homes and Communities' large-scale projects
- Additional funding for Land for Housing Programme
- Māori Infrastructure Fund.
Infrastructure Acceleration Fund
This fund unlocks a mix of private sector-led and government-led developments in locations facing the biggest housing supply and affordability challenges
Kāinga Ora’s large-scale projects
Large-scale projects (LSPs) are large urban redevelopment projects in Auckland and Eastern Porirua in areas where Kāinga Ora owns significant land and where there’s a need for new public housing, or existing public housing needs replacing.
LSPs are an opportunity to provide new fit-for-purpose houses for public housing tenants, increase housing supply across a range of tenures, and increase housing density in places close to jobs, schools and services.
Read more about large-scale projects.
Additional funding for the Land for Housing Programme
This will speed up the development of vacant or under-used Crown-owned land, operate in more regions and deliver a wider range of affordable housing options for renting or buying.
The Māori Infrastructure Fund
In addition to the Infrastructure Acceleration Fund, iwi and Māori will also have access to a $350 million Māori Infrastructure Fund ringfenced from the Housing Acceleration Fund. The Māori Infrastructure Fund will unlock a wider range of Māori-led housing projects, such as papakāinga developments, developments on whenua Māori or rural developments with onsite infrastructure needs.
Other funds and programmes to support first home buyers and encourage investment in new housing supply include:
- the Kāinga Ora Land Programme, through which Kāinga Ora – Homes and Communities (Kāinga Ora) is supported to borrow $2 billion extra to scale up land acquisition to increase the pace, scale and mix of housing developments (including more affordable housing)
- the $350 million that has already been committed to the Residential Development Response Fund which will shift from supporting construction activity and jobs through COVID-19 to focus on supporting the delivery of more affordable housing options for rent and home ownership.