New Zealand's Labour government announced a new underwriting scheme to help community housing providers access lower interest rates, freeing up funds for building homes and supporting tenants. Housing spokesman Kieran McAnulty stated, βEvery dollar saved on interest is a dollar that can go into building homes and supporting tenants.β
Since 2019, the Community Housing Funding Agency (CHFA) and its manager, Community Finance, have facilitated over $400 million in loans to community housing providers. The new government guarantee will allow CHFA to borrow at lower rates, passing savings on to providers.
The scheme is expected to support the construction of hundreds of additional affordable homes over the next few years, addressing New Zealand's housing shortage. The government emphasized that the guarantee carries minimal fiscal risk, as loans are secured against housing assets.
