Government planning and support for housing on Māori land
Introduction
1.1
In September 2011, we published a report entitled Government planning and support for housing on Māori land – Ngā whakatakotoranga kaupapa me te tautoko a te Kāwanatanga ki te hanga whare i runga i te whenua Māori (our 2011 report). We looked at how effectively the Government supported Māori seeking to build housing on multiply-owned Māori land (referred to as Māori land in this article).
1.2
We found that, despite good intentions of government agencies, building a house on Māori land was a fraught process. Lessons had not been learned from past attempts, so initiatives were targeted ineffectively and processes were cumbersome.
1.3
We recommended that:
- the agencies involved in providing advice and support co-ordinate what they do locally by:
- having one organisation act as a single point of contact for Māori who want to build housing on their land;
- agreeing a shared process that sets out who will work with Māori who want to build on their land and when; and
- having staff with the relevant expertise and knowledge available to provide high-quality information and advice;
- local authorities build appropriate flexibility into their district plans to allow housing to be built on Māori land;
- local authorities identify and work with landowners who have particularly suitable land blocks and who want to build housing on Māori land;
- the Department of Building and Housing (now part of the Ministry of Business, Innovation and Employment) better target financial support programmes by:
- better matching the support available to the financial circumstances of Māori, so that it is available and affordable for more Māori organisations and households;
- making financial support available when costs are incurred; and
- structuring the financial support to make housing developments sustainable; and
- the Department of Building and Housing (now part of the Ministry of Business, Innovationand Employment), working with other agencies, build the capacity of Māori organisations that plan to participate in housing. This includes their ability to project manage a housing development through the legal and practical processes required to successfully build houses on Māori land.
1.4
These recommendations are intended to guide agencies, local authorities, and Māori organisations to work together more effectively to achieve better outcomes for Māori seeking to build on Māori land.
What has happened since our report
1.5
In this article, we describe, with some examples, progress made in addressing our recommendations to improve planning and support for building housing on Māori land.
1.6
For several reasons, the response to our recommendations has been slower than many Māori with aspirations to build might have wished. One reason is that our recommendations required action from many parties, at governmental and local levels, who need to work better together.
1.7
We have seen some promising activity, such as:
- the Ministry of Business, Innovation and Employment preparing a Māori Housing Strategy that addresses most of the recommendations in our 2011 report;
- changes to the criteria for loans and grants to Māori and Māori organisations, with 11 Kāinga Whenua loans for building housing on Māori land agreed, and 19 Kāinga Whenua infrastructure grants (new since our 2011 report) agreed to cover the costs needed to connect housing to infrastructure services such as water and power;
- local authorities working more collaboratively with Māori to improve the housing and land outcomes for Māori and local communities; and
- the Government, local authorities, and Māori organisations refining and sharing resources for building capacity and the capability of Māori seeking to build housing.
1.8
The Māori Housing Strategy, released in July 2014, sets clear directions, actions, and priorities for the next 10 years. The Ministry of Business, Innovation and Employment is preparing an evaluation model to measure progress and report against the Strategy. The evaluation model is expected to provide transparent information about the implementation of the Strategy.1 In our view, the results of evaluations need to be shared with all participants and the public in a way that is easily understood and easy to find. Also, information about how many houses have been, or are being, built on Māori land needs to be collected and available.
1.9
As noted in our May 2014 report Reflections from our audits: Our future needs – is the public sector ready?, effective implementation of strategies by the public sector has been patchy.2 The future needs of New Zealanders will not be delivered solely by having a good strategy or plan.
1.10
During our interviews, people told us that more collaboration between local agencies was needed because Māori found it challenging to navigate all the different processes. The Māori Housing Strategy’s pointing to the need to strengthen local co-operation is, therefore, encouraging.
Changes to the participating agencies
1.11
Since our 2011 report, there have been changes to the government departments and other agencies that support the development of housing on Māori land. Now, the relevant government departments are the Ministry of Business, Innovation and Employment, Te Puni Kōkiri (Ministry of Māori Development), and Housing New Zealand Corporation.
1.12
We understand that a new Māori Housing Unit is being established with an operational policy focus and will help to put the Māori Housing Strategy into effect.
Progress in acting on our recommendations
1.13
The steady progress in acting on the recommendations in our 2011 report is taking place in the broader context of improving access to affordable housing for Māori and non-Māori alike.
1.14
The Ministry of Business, Innovation and Employment, in collaboration with Te Puni Kōkiri and the Māori Housing Reference Group, developed the Māori Housing Strategy which was released on 1 July 2014. One of the stated purposes of the Strategy is to respond to the recommendations of our 2011 report and the New Zealand Productivity Commission’s Housing Affordability Inquiry report of 2012.3
1.15
The Māori Housing Strategy seeks to improve housing for Māori and their whānau, and increase housing choices by “growing the Māori housing sector”. To achieve these goals, the Strategy sets six directions containing action areas and priorities for the next 10 years. Figure 1 sets out the aspects of the Strategy most relevant to the recommendations in our 2011 report.
Figure 1
Māori Housing Strategy priorities relevant to our 2011 report
| Direction | Direction 3: support Māori and their whānau to transition to preferred housing choices | Direction 5: increase housing on Māori-owned land | Direction 6: increase large housing developments involving Māori organisations |
|---|---|---|---|
| Goal | Improve housing for Māori and their whānau | Increase housing choices by growing the Māori housing sector | |
| Relevant action areas 2014-25 |
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| Relevant priorities 2014-17 |
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1.16
The Māori Housing Strategy applies to all land that Māori own, not just land legally classified as “Māori land”,4 and includes land returned to Māori as part of a Treaty of Waitangi settlement.
Co-ordinating advice and support
1.17
Our 2011 report found that owners of Māori land who need information and advice about building houses on their land have to speak with at least three but usually more government departments and other agencies to get the information that they need. These agencies did not adequately understand each other’s processes, policies, and requirements. For land owners, this complicated matters.
1.18 Our 2011 report recommended that the agencies involved in providing advice and support co-ordinate what they do locally by:
- having one agency act as a single point of contact for Māori who want to build housing on their land;
- agreeing a shared process that sets out who will work with Māori who want to build on their land, and when; and
- having staff with the relevant expertise and knowledge available to provide high-quality information and advice.
1.19
Our recommendation did not specify which agency was to take responsibility because we considered it important that Māori, local authorities, government departments, and other agencies work collectively.
1.20
Although there remains no single point of contact in each region for Māori wanting to build housing on their land, Te Puni Kōkiri has acted as the first point of contact in most regions. For example, Te Puni Kōkiri responds to people who come directly to it, takes referrals from other agencies, and enquiries through its website. We understand that the lack of a single point of contact, or a shared or co-ordinated process are still among the biggest challenges for Māori aspiring to build housing on Māori land. However, we saw examples of more local and national collaboration. We encourage people and organisations implementing the Māori Housing Strategy to better tackle these challenges.
1.21
In our 2011 report, we discussed the Bay of Plenty Joint Agency Group for Māori Housing. The Joint Agency Group takes the lead in co-ordinating the work of entities helping to build housing on Māori land in the Bay of Plenty. The Joint Agency Group members are currently from Western Bay of Plenty District Council, Tauranga City Council, the Bay of Plenty Regional Council, Te Puni Kōkiri, and the Waikato Maniapoto and Waiariki District Māori Land Courts. The Joint Agency Group continues to effectively promote and support the building of housing on Māori land. The Joint Agency Group works with Māori land trusts and, more recently, with iwi who have had land restored to them as part of a Treaty settlement.
1.22
Ngā Pōtiki a Tamapahore, a Treaty of Waitangi settlement trust and member of the Western Bay of Plenty Māori Housing Forum, collaborates with the Joint Agency Group in its developments, including the building of six 2-bedroom kaumātua units on Māori land and a post-Treaty settlement housing project of up to 460 house sites, committing up to 30% of that towards social and affordable housing (the Te Houhou Housing Development).
1.23
The Māori Housing Strategy acknowledges the benefits of local collaboration in a case study of Ngā Pōtiki a Tamapahore in Western Bay of Plenty:
Ngā Pōtiki has been able to reduce delays and costs and streamline processes for building on Māori land because it has invested resources in building and consolidating relationships with both land trusts and with local authorities through the Western Bay of Plenty Joint Agency Group. This has assisted with amendments to district and regional planning rules to open access to a range of housing development options on Māori land suited to the achievement of local Māori aspirations for social and affordable housing.5
1.24
Māori and Māori organisations play an important role in promoting collaboration. For example, Te Matapihi he Tirohanga mō te Iwi Trust (Te Matapihi), a non-government organisation composed of representatives chosen at the inaugural National Māori Housing Conference, has run several nationwide hui to bring iwi and government and non-government agencies together.6 These hui are designed to discuss the direction of major housing reforms, and provide opportunities for sharing information and raising awareness about different services and products from agencies. Since 2012, the Social Housing Fund has contributed funding to Te Matapihi and Community Housing Aotearoa for these activities.
1.25
Te Matapihi prepares strategies, resources, and processes that can inform its own and others’ roles in Māori housing advocacy with central and local government. Te Matapihi focuses on affordability of housing for Māori, capability needs for Māori, and improving relationships between agencies and stakeholders. Recently, it has been involved in the development of the Auckland Proposed Unitary Plan and has helped to set up the Tāmaki Māori Housing Forum and Joint Agency Group.
1.26
The new Māori Housing Unit (see paragraph 1.12) will support the Māori Housing Strategy. The Government is currently determining the funding, roles, and functions of that Unit. This work will consider allocation of responsibilities for the Māori Housing Strategy and how to ensure close links between operational and strategic Māori housing policies.
Flexible district plans and identifying and working with interested landowners
1.27
In 2011, we reported that local authorities take different approaches to planning for housing on Māori land. The planning costs for Māori seeking to build on their land vary considerably, depending on the approach.
1.28
Māori land is more likely than other land to be zoned in a restrictive way because of its historical uses and locations. Some local authorities had taken a more proactive approach to housing on Māori land. They often have specific consultation processes and planning regulations that are intended to make it easier for Māori to build housing on their land.
1.29
We recommended that local authorities build appropriate flexibility into their district plans to allow housing to be built on Māori land. Our recommendation applied to all local authorities.
1.30
Our 2011 report also recommended that local authorities identify and work with owners of particularly suitable Māori land blocks who want to build housing on that land.
1.31
Rather than evaluate all local authorities’ district plans and the way that they work with Māori, we looked at what is happening in Auckland. Auckland Council is working with Māori as it replaces all its planning documents with a Unitary Plan. Some of Auckland Council’s activities provide useful examples of how local authorities can address our recommendations.
1.32
Auckland Council has prepared a Proposed Auckland Unitary Plan that will replace the regional policy statement and 13 district and regional plans. The Proposed Auckland Unitary Plan is expected to provide greater flexibility for housing and a wider range of development options for Māori land (and land that is returned to Māori through Treaty settlements) by introducing policies, objectives, and rules with these aims in mind.
1.33
In our view, Auckland Council’s recent approach to working with local iwi authorities is positive. The Council worked closely with iwi authorities on the Proposed Auckland Unitary Plan to ensure that it understood the needs and values of Māori wishing to build on Māori land and land restored as a result of a Treaty settlement. For example, we were told that the Council began to talk with iwi authorities before work on the Proposed Auckland Unitary Plan began, to ensure that Māori interests and aspirations were considered at the outset. The Council also gave feedback to iwi about how matters that they had raised had been, or would be, addressed.
1.34
A document that Auckland Council prepared under section 32 of the Resource Management Act 1991 discusses the proposals as they relate to Māori land. The document acknowledges our recommendation calling for more flexibility in district plans, and characterises the approach taken in the Proposed Auckland Unitary Plan as:
… a significant shift from legacy plans because the provisions for Māori land:
- are not limited to rural areas
- recognise the need for economic development to support occupation
- include provision for a discretionary Integrated Māori Land Development
activity- include an objective and policies to address potential conflict between natural
heritage overlays and the desire of landowners to occupy their ancestral land- include an objective and policy to encourage infrastructure providers to avoid
development on Māori land, where possible.7
1.35
In the Proposed Auckland Unitary Plan, the development of Māori land and Treaty settlement land is identified as important as part of addressing matters of importance to local Māori. The proposed regional policy statement has two objectives relevant to Māori land. The first is that development supports the economic, social, and cultural aspirations of Māori. The second is that mana whenua occupy, develop, and use their land within their ancestral rohe.
1.36
To support these objectives, two policies in the proposed regional policy statement relate directly to developing Māori land – namely, the policies to:
- enable the occupation, development, and use of Māori land for the benefit of its owners, their whānau, and their hapū; and
- enable mana whenua to occupy, develop, and use Māori land within areas scheduled for natural heritage or historical heritage values in ways that recognise and provide for those values.
1.37
Auckland Council would give effect to the above objectives and policies by working constructively with Māori, and in its application of relevant aspects of the final Unitary Plan.
1.38
The Proposed Auckland Unitary Plan provides for integrated Māori development plans. An Integrated Māori Development Plan has a discretionary activity status in the Māori land and Treaty Settlement Land rules of the Proposed Auckland Unitary Plan. This would allow applicants to apply for consent to develop land beyond the specified controls for that land’s use. The major benefit of an integrated Māori development plan is that it would be “processed on a non-notified basis”, which significantly reduces the cost and risk.
1.39
The Proposed Auckland Unitary Plan was publicly notified on 30 September 2013 and written submissions have been made. The Independent Hearings Panel is currently hearing submissions on the Proposed Auckland Unitary Plan and will report back to Auckland Council with recommendations. Aspects of the Proposed Auckland Unitary Plan may change as a result of the Panel’s recommendations.
1.40
The Panel must make recommendations for changes to the Proposed Auckland Unitary Plan in July 2016 so that Auckland Council can consider and prepare its decision by 30 September 2016. (There is provision for an extension of both deadlines.)
1.41
The approach taken by Auckland Council is one of many different approaches. Other local authorities need to adapt and refine their approach in keeping with the changing needs of their community. However, regardless of the local authority, many practices, such as involving Māori early in proposals for change, saying how matters that Māori had identified had been addressed, and deciding with Māori how relationships will be managed, are valuable practices.
Targeting financial support programmes
1.42
Our 2011 report recommended that the then Department of Building and Housing (now part of the Ministry of Business, Innovation and Employment) better target financial support for building housing on Māori land by:
- better matching the support available to the financial circumstances of Māori, so that it is available and affordable for more Māori organisations and households;
- making financial support available when costs are incurred; and
- structuring the financial support to make housing developments sustainable.
1.43
Generally, steady progress has been made since our 2011 report. Importantly, access to Kāinga Whenua funding has improved because of changes in criteria. For example, between July 2011 and August 2014:
- 10 Kāinga Whenua individual loans adding up to $1.85 million were agreed;
- one Kāinga Whenua loan for a collective was approved, and a further 10 trusts have registered an interest with Housing New Zealand Corporation to get access to these loans;
- 19 Kāinga Whenua infrastructure grants, totalling $3.45 million, were approved, supporting the building of 83 houses (78 of which are new houses):
- 10 infrastructure grants were for trusts and collectives ranging from $18,196 to $990,363 (an average grant of $40,108 a house); and
- nine infrastructure grants, ranging from $18,400 to $96,600, were to individuals;
- $1.44 million was distributed under Kāinga Whenua capacity grants to support 12 Māori organisations or collectives in preparing their housing plans; and
- 18 grants to Māori organisations or collectives totalling $18.26 million were approved from the Social Housing Fund for Pūtea Māori:
- the grants will deliver 103 units (a total of 304 bedrooms);
- all but four of the projects are on Māori land; and
- the four projects not on Māori land are Māori organisations or collectives who had bought or acquired the land, and these projects represent about 20% of the units (and bedrooms) being built.
1.44
Figure 2 summarises the status of programmes and funding for building housing on Māori land, as at October 2014.
Figure 2
Overview of government help for building housing on Māori land, as at October 2014
| Programme | Purpose | Funding |
|---|---|---|
| Special Housing Action Zones (Te Puni Kōkiri) |
Targets the resolution of serious housing needs among whānau, hapū, iwi, and Māori communities within designated Special Housing Action Zones. Distinct from other housing programmes because it targets communities rather than individual households. |
|
| Pūtea Māori (Ministry of Business, Innovation and Employment) |
Capital grant for social affordable and assisted home ownership housing, principally on Māori land. Established as a targeted fund for Māori in 2012 (grants in 2011/12 were made from the Māori and Rural Funds). |
|
| Kāinga Whenua Project Capability (Ministry of Business, Innovation and Employment) |
At first, part of the Proposal Development Fund, set up to help with project development costs (with $500,000 specifically for Pūtea Māori applicants). In December 2013, the Pūtea Māori component was separated and renamed Kāinga Whenua. Criteria were extended to include building capability to manage future housing projects and portfolios. |
|
| Kāinga Whenua Infrastructure Grant (Ministry of Business, Innovation and Employment) |
Covers costs of infrastructure needed to connect developments on Māori land to existing infrastructure. |
|
| Kāinga Whenua loan (Housing New Zealand Corporation) |
Underwrites mortgage insurance for housing on papakāinga land (loans by Kiwibank Limited). The changes to the loan scheme are outlined in Figure 3. |
|
| Māori Housing Fund (Ministry of Business, Innovation and Employment) |
Support the repair and rebuild of rural housing, the improvement of housing on Chatham Islands, and the development of Māori social housing providers. |
|
Source: Ministry of Business, Innovation and Employment.
1.45
Since 2011, the criteria for funding the Kāinga Whenua loan scheme, which Kiwibank Limited and Housing New Zealand Corporation run in partnership, has changed significantly. Changes took place in two stages in 2012 and 2013 (see Figure 3). The changes were to make building on Māori land easier and allow a wider group of borrowers to access lending (including extending the loan scheme to land received by iwi and hapū as part of Treaty settlements) as well as allowing them to borrow for repairs and maintenance.
Figure 3
Changes in Kāinga Whenua loan scheme criteria, 2012-13
| Previous criteria | Criteria from 1 December 2012 | Further changes in 2013 |
| Available only for people buying their first homes. | Current home owners and those who have previously owned a home can apply. | - |
| All borrowers who contribute to the loan repayments must live in the house. | Only one borrower needs to live full-time in the house. Other whānau members, not living in the house, are able to contribute to the loan repayments. | - |
Previous income cap:
|
Current income cap:
|
- |
| Available for building, buying, or re-locating homes on Māori land. | Available for building, buying, or re-locating homes on Māori land, but can also be used for repairs and maintenance on existing homes on the land. | Grants and loans are now also available for land that hapū and iwi receive from their Treaty settlements. |
| Māori land trusts not eligible. | Māori land trusts were invited to register their interest. | Māori land trusts eligible for loans. |
| Houses built on ancestral land must be relocatable (mandatory in the event of a loan default). | - | Cabinet mandate for removing requirement as long as there is alternative security for the loan. |
Source: Kiwibank Limited’s website and other publicly available information.
1.46
In our view, the changes to the criteria for the Kāinga Whenua loan scheme and introduction of the infrastructure and project capability funding represent a good first step towards the Government better targeting financial support. The Māori Housing Strategy states that there will be a review of government funding assistance for housing development on Māori land and that this review is a priority for 2014-17.
Increasing the capacity of Māori organisations to develop housing
1.47
Our 2011 report stated that a major challenge is that Māori and Māori trusts manage land blocks suitable for housing but can lack the project management, technical skills, and cash flow needed. This means that although they might have potentially viable and effective plans for housing on Māori land, the plans might not be realised.
1.48
Therefore, we recommended that the then Department of Building and Housing (now part of the Ministry of Business, Innovation and Employment), work with other agencies to build the capacity of Māori organisations that plan to participate in housing. This includes helping them to be better able to manage a housing development project through the legal and practical processes required to successfully build houses on Māori land.
1.49
Under Direction 5 (increase housing on Māori land), the Māori Housing Strategy proposes to prepare tools and models to support Māori organisations to set up sustainable housing projects on their land as an action focus for 2014-25. The Māori Housing Unit and Te Puni Kōkiri intend to continue their work to build capacity for the development of housing on Māori land by putting the Māori Housing Strategy into effect.
1.50
In 2000, as a four-year trial, Te Puni Kōkiri began administering funding for the Special Housing Action Zones. This funding has continued since 2004 under the output class “iwi housing support” within Vote Māori Affairs, to the value of $456,000 (excluding GST) a year.
1.51
Since July 2011, Special Housing Action Zones funding has helped Māori to build capacity to develop housing proposals with investments as follows:
- 12 projects in 2011/12, with an average investment of $37,000;
- 11 projects in 2012/13, with an average investment of $41,000; and
- 15 projects in 2013/14, with an average investment of $29,920.
1.52
In total, between 2011 and June 2014, Special Housing Action Zones funding has supported 12 Māori organisations to go on to secure $13.68 million in grants for the construction of 79 units on Māori land. Also, three of the 12 Māori organisations have received infrastructure grants for a further 20 sites.
1.53
A notable practice has been the sharing of a papakāinga toolkit.8 This step-by-step guide was prepared by the Bay of Plenty Joint Agency Group with practical contributions from Ngati Tuheke, the Makahae Marae Papakāinga Project, Tapuika Iwi Authority Trust, the Western Bay of Plenty Māori Housing Forum and the SmartGrowth Combined Tangata Whenua Forum members. It is designed to help Māori to prepare proposals and a development plan for building on Māori land. A workshop accompanies the toolkit to apply the theory to real-life situations.
1.54
As part of work for the Special Housing Action Zones, Te Puni Kōkiri tested this papakāinga toolkit by working with a housing development and responding to the problems that were raised during the process. The papakāinga toolkit, a tool and model of development, can be used alone or delivered in six or more workshops to help Māori organisations and collectives better understand what they need to consider (including information required and sign-off points) when working on a housing project on Māori land.
1.55
Te Puni Kōkiri has further tested this workshop approach in six regions and has seen an increase in interest and commitment for building housing on Māori land as a result. Those regions are the Mid North (Te Runanganui o Ngapuhi), West Auckland, Tairāwhiti (Te Runanganui o Ngāti Porou and Te Runanga o Turanganui a Kiwa), Waikato, Takitimu and Western Bay of Plenty and its subregion. Te Puni Kōkiri prefers to have a local person with experience of building housing run the workshop.
1.56
The toolkit can also be sent to trusts for them to work through on their own, with advice and support from Te Puni Kōkiri.
Looking to the future
1.57
Although steady progress is being made, an ongoing genuine commitment to effectively acting on our 2011 report recommendations and the Māori Housing Strategy is essential. We remain of the view that a single point of contact in each region, and a shared and co-ordinated process supported by staff with the relevant expertise and knowledge is crucial to supporting those who want to build housing on Māori land.
1.58
Those putting the Māori Housing Strategy into effect should realistically identify necessary resources, devise ways to put plans into practice, and follow up those plans. Information about good practice, successes, lessons learned, and funding should be shared regularly and often. That information should be clear, accurate, accessible, and easy for everyone to understand. Finally, we consider that strong relationships between central and local government agencies, Māori organisations, and Māori are vital to the Māori Housing Strategy’s success.
1: Ministry of Business, Innovation and Employment (2014), He Whare Āhuru He Oranga Tānagata: Māori Housing Strategy, page 38.
2: Pages 19-20.
3: Ministry of Business, Innovation and Employment (2014), He Whare Āhuru He Oranga Tāngata: Māori Housing Strategy, page 1. The Housing Affordability Inquiry report is available on the Productivity Commission’s website, www.productivity.govt.nz.
4: Māori land, as defined in the Te Ture Whenua Māori Act 1993, is land that has the legal status of Māori customary land or Māori freehold land.
5: Ministry of Business, Innovation and Employment (2014), He Whare Āhuru He Oranga Tānagata: Māori Housing Strategy, page 32.
6: See Te Matapihi’s website, www.tematapihi.maori.nz.
7: See Auckland Council’s website, 2.17 – Māori land: section 32 evaluation for the Proposed Auckland Unitary Plan, available at www.aucklandcouncil.govt.nz.
8: See Te Keteparaha Mo Nga Papakainga – Maori Housing Toolkit, available on the Western Bay of Plenty District Council website, www.westernbay.govt.nz.