New home ownership trials based on a shared equity model are underway to help low-income whānau, according to Te Puni Kōkiri chief executive Michelle Hippolite.
The shared-equity model mean iwi would leave some capital in the home, supported by a temporary grant from Te Puni Kōkiri while whānau can accumulate enough capital to obtain bank finance and buy the house outright.
The Port Nicholson Block Settlement Trust; Te Rūnanganui o Ngāti Porou, and the Chatham Islands Housing Partnership Trust will trial the shared equity homeownership model.
“It’s critical that we try other ways of getting more Māori into home ownership,” Hippolite said. “Only 43% of Māori own a home compared to 63% of the general population.”
Other groups to co-design home ownership trials include: Te Tihi o Ruahine Whānau Ora Alliance in Palmerston North; and Te Taiwhenua o Heretaunga in the Hawkes Bay.
Te Tihi o Ruahine Whānau Ora Alliance in Palmerston North are trialling a rent to own arrangement with support through Te Puni Kōkiri capital seed grant funding. Whānau will accumulate sufficient capital to buy their homes outright.
Te Taiwhenua o Heretaunga in the Hawkes Bay are trialling a co-housing arrangement, where several whānau could buy a group of homes, and live according to kaupapa Māori with support through Te Puni Kōkiri capital seed grant funding.
“These trials provide us with an opportunity to consider different ways of supporting whānau on a pathway to realise their housing aspirations,” the chief executive added.
All of the trials include financial literacy support to help whānau decide whether they are ready for home ownership.