Government extends second underwrite for KiwiBuild homes

by Krizzel Canlas24 May 2019

The government has purchased another set of Kiwibuild homes that failed to sell, the second time for the Crown underwrite to be triggered.

The government bought seven more homes following sales in Mike Greer's development in Canterbury and Auckland, Radio NZ reported. The government first bought five homes in Wanaka's Northlake development in April.

The Crown underwrite is provided to pay for any losses incurred by private developers over unsold KiwiBuild homes. If the houses remain unsold after 60 days, the developer can trigger the underwrite and require the government to buy them back at a discounted price.

Read more: Calls for housing minister to resign over ‘KiwiBuild failure’

The publication said Kiwibuild did not disclose the price for the seven houses, saying it was commercially sensitive. There were reportedly four houses in Auckland and three in Canterbury.

Meanwhile, a KiwiBuild spokesperson told RNZ the programme should be looked at in its entirety, for example strong sales in Tauranga. The whole Mike Greer development, with 104 houses in total, won't be affected by the underwrite trigger, and will proceed, he added.

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