It looked at the two main components of the KiwiBuild programme
The controller and auditor-general has finally responded to concerns about KiwiBuild as part of the 2018/2019 annual audit of the Ministry of Housing and Urban Development.
In May 2019, Hon Judith Collins raised some concern about the KiwiBuild programme – including whether all of the activities were covered by appropriations, how relationships with developers were managed, and other concerns about specific projects linked to the “Buying Off the Plans” component of KiwiBuild.
To address the concerns, the annual audit focused on how projects were identified, the evaluation, due diligence, and approval processes as well as processes for managing conflicts of interest. It also looked at the two main components of the KiwiBuild programme – the Land for Housing programme and Buying Off the Plans.
“The assessment of land for housing follows a well-defined process,” said John Ryan, controller and auditor-general. “We reviewed two examples of land packages brought into the programme and the process for identifying land, assessing its suitability, and for identifying and contracting a development partner. From an audit point of view, we found the process to be robust.
Speaking about the other component, he said: “We reviewed the process for identifying opportunities to buy KiwiBuild properties ‘off the plans’. This process includes opportunities for outright purchase of properties as well as underwriting developments with conditions attached to their eventual sale to KiwiBuild purchasers at KiwiBuild price points.”
Read more: KiwiBuild reset is bad news for low- and middle-income earners – thinktank
The audit also addressed concerns about specific projects, decision-making and coverage by appropriations, and future work on housing.
“My Office is still considering what further work we might carry out on housing and KiwiBuild in particular. Given the significant resources involved in the provision of public housing and other housing support, we continue to have an active interest in the sector. I have yet to make decisions about the focus and form of that further work,” Ryan clarified.
“As well as the annual audit work we will continue to do on KiwiBuild, I will consider further whether there is value in conducting more in-depth work on aspects of the KiwiBuild programme or whether the resources of my Office could be better applied on other housing issues.”
