Housing: A Resource on Solutions to Child Poverty

And Vulnerability

Recommendations of the Children’s Commission

• IncludehousingintheNationalInfrastructurePlan

• HaveaWarrant of Fitness for Rental Properties toensurethatallrentalaccommodationisuptoreasonablestandardsforhealthandsafety.

• ReviewtheAccommodationSupplementandIncomeRelatedRents.

• ExtendtheHeatSmartinsulationsubsidyprogrammeforinsulation

• Increasethenumberandqualityofsubsidised‘SocialHousing’–forlow-incomeindividualsandfamilies.

Matters for discussion and what we can do

NationalInfrastructurePlans,OpportunitiesandPrioritiesare:

Transport (roads); Telecommunications (extend fast broadband); Energy(improve regulation and support further investments in petroleum andmineralexplorationandextraction);Water(improvedmanagementofassetsandpublic–privatepartnerships);Social(fundingdeliveryandinvolvementoflocalgovernment).

FordetailsofNationalInfrastructureand2013policycontext(SeelinkPIN2013)

• NewZealandisshortofhouses.Whataretheeffectsandhowcanthisbeimproved?

• IfeconomicgrowthisapriorityforNewZealandtobringthenationalaccounts out of deficit, how would housing contribute to economicdevelopment? and what would be needed for housing to benefit lowincomefamilies?

• Are there housing needs in your community? How are parishionersaffectedbythese?Isthereanysupportneededthatisappropriatefortheparish?

• HowfairisittohaveHousingNZtenantsmovedonbecausetheybecomeabletopaymarketrentsorhavemoreroomsthantheyneedbecauseoffamilychanges?Howimportantishousingstability?

Wesley and Theological reflection

Methodismremainedareligiousmovementseekingthereformationoftheestablishedchurchandthealleviationandameliorationoftheeffectsoftheindustrialrevolutiononthepoor.

Houseswerepurchasedto lookafterwidows,orphansandothers.Schoolswere founded to provide free education for children and loan societieswerecreatedtohelppeoplestartbusinessesandpayoffdebtsandbecomefinanciallyself-supporting.

Theseinitiativestoassistthosestrugglingtosurviveintheindustrialrevolutionweretheeffectofatheologyofcompassion.ForWesley,compassion,thecareforother’sneeds,requiresactionandpracticalresponses(J.Stuart2008).

These initiatives to assist those struggling to survive in the industrial revolution were the

effect of a theology of compassion. For Wesley, compassion, the care for other’s needs, requires

action and practical responses.

Poor quality housing causes poor health, and these indicate higher chances of adverse life

chances for children .

Context and Background

Housing is a cost that keeps many families in poverty and has a majoreffectonchildhealth.Lowincomesmeanthattoomanyfamiliesarebeingcrowdedunderoneroofandthatthelivingconditionsofchildrenareunsafe,unhealthyandstandinthewayoflearning.Babiesandyoungchildrenaremostaffectedbecausetheyspendmoretimeathome.

NewZealandischronicallyshortofsocialhousing.Homeownershipisanunachievable dream for families below the poverty line, so an improvedsupply of healthy housing at affordable rents is a priority. Private rentalhousestendtobelowquality,un-insulatedandbadlymaintained.HousingNewZealandhouseshaveissuesoverquality,typeofhousingandwheretheyare located.Sometimestheyare in isolatedareaswithoutpublic transport,shops,parksandsportsgroundsandcommunityfacilitiessuchaslibrariesandswimmingpools.

Thisisnottosayweshouldabandonstateresponsibilityforsocialhousing–ratherthatthequalitybeimprovedalongandthatacommitmenttobuildmorehousesberenewed.

Thereisprogressonqualityimprovementsfromretrofitting,butwithsometrade-offs.IntheWaikato76statehousesweresoldintheyearendingJune2013,andreplacedwith23newhousingunits;soanetlossof53houses.

Thisdoesnotsignaladropindemand;waitinglistsforHousingNewZealandhousesintheWaikatohaveoverahundredapplicants,attheseriousneedlevel(Waikatosocialhousing2013).

Whilebuildingcostskeepclimbing,thecostofahouseonitsownmaynotbe within the budget ofmost working people: there aremany ‘low-cost’housedesignsfrom‘low-cost’orientedbuildingfirms.Itisthecostoflandthatisthekillerformostpeople.Asectionislikelytocostasmuchasthehouseupon it.Citiesandsmaller townsgiveanadvantage topeoplewhoown landby adding to its value throughbuilding ahouse.Perhaps thereis a need for a return of the State Advances Corporation. Co-operativehousingopensopportunities forsharedinvestment inhousing.Aswellassharingfinancialresources,italsoinvolvescontributingtomaintenanceandmanagementandtomembershipasamoresocializedwayofliving.Thereare co-operative initiatives inChristchurch andAucklandwhere housingneedismostcritical(SeeCo-operativeHousinglinks).

Overall5%ofpeopleinAotearoaNZliveinsocialhousing.WhenweturntothesituationforPacificcommunitiesandhouseholdsandforMāori,weseeapictureofradicalanddisproportionatedisparitywithhighernumbers,thatisaround29%payingover30%oftheirincomeonrents,andovercrowding.

At a PIN Forum in 2012, on priorities forChild Poverty, housingwas anumberone.Itwasnotedthattheprofitinterestsoflandlordsunderminesocialresponsibilitydimensionsofhousing.Aproposalwasmadetoputacaponrents–thisisproposedasaviableoption–acaponrentsispolicyinsomejurisdictions,includingFiji.

Poorqualityhousingcausespoorhealth,andtheseindicatehigherchancesofadverselifechancesforchildren(Children’sCommissionWorkingPaper18,p.7).Onestudyshowedthatoutof100childrenadmittedtohospitalhalfwerechildrenlivinginpoorqualityhousing,wheremostoftheparentswereunabletopaytheirelectricitybill.Halfoftheseadmissionswerepreventable,andinaboutonethirdofcasesimprovedhousingwouldhavereducedtheriskofadmission(Children’sCommissionWorkingPaper18p.12).Ineconomicterms,theaveragecostofachild’sadmissiontohospitalis$2645.

Housingaffordability ismeasuredbytheratioofhousingcosts to income.Housingisconsideredtobeaffordableifahouseholdisspendingnomorethan 30%of their incomeonhousing. By 2009, 27%of households spentmorethan30%onhousing.Incontrastthoseinthelowestincomebracket(bottom5thofincomelevel)paid40%onhousing,andthosewithhighestincomebracketpaidlessthan20%.

Thehistoricalcommitmentstosocialhousingnowfacechallengesofanegativefiscalenvironmentwithanideologythatthemarketwillmeethousingneeds.Growinginequalityaswellasongoingmovementofpeopletourbanareasandtherisingcostsofpoweraddtothepressuresofhousingcosts.Thedriveforbetterqualityhousingandretrofittingarenotonlysignificantforhealthand wellbeing: they are included as important contributions to reducingcarbonemissionsandclimateresponsibilities.Anewpublicationonsocialhousing,Homes People Can Afford,treatsustosolidanalysis,internationalsolutions,avisionforsocialhousingalongwithlocalinnovation(Bierreetal,2013).

Housing Policy - Accords and budget update

TheMay2013budgethousingproposalswillnotmakeasignificantdifferenceto low income family housing needs. There is public concern about theAccordsbetweenlocalgovernmentandcentralgovernmenttoprovidelandforhousing,becausetheMinistermayover-ridelocalgovernmentregulationsfor housing developments. The Social Housing Unit funds remain smallcomparedtohousingsupplyneeds,andproposalstotransferstatehousingtonon-governmentprovidersarestillbeinginvestigated.Thereisconcern

The Healthy Housing Programme showed that for children under 20 years of age in social housing with the Health Housing programme, hospital admissions were

reduced by 27%.

about‘reviewabletenancies’becausethismeansHousingNZfamilieswhoarepayingmarketrentsandwhomayhavemoreroomsthantheyaredeemedtoneed,maybemovedon.(FordetailsseelinkNZCCSS,2013)

Insulation

NewZealandhouses arenotoriously cold, anda remedy is in retrofittinginsulation.Astudyoftheeffectsofinsulationon1400lowincomefamiliesin seven parts of New Zealand was done to evaluate theWarmUpNewZealandHeatSmartpolicy.Childrenwereshowntohavelesswheezingandfewerdaysoffschool.Therewasreducedhospitalization.Thehealtheffectsare undisputed; however the cost benefits of retrofitted insulation are insome contention.One larger study showed that benefits outweighed costsby4:1(Children’sCommissionWorkingPaperNo.18.p13).Wherebenefitswerenotsohighitwasfoundthatpoorqualityheatinghadtheadverseeffectsfrompoisonousgasesfrompoorqualityheaters.

The Healthy Housing Programme showed that for children under 20years of age in social housing with the Health Housing programme,hospitaladmissionswerereducedby27%.Thereweremostbenefitswhereovercrowdingwas reduced, but theHealthyHousingprogramme includesinsulationandheating,aswellassocialsupportthrough linkswithsocialservicesandpublichealthservices(Bierreetal2013,p.38).

Moving House

Moving house is a big phenomenon in New Zealand. There is highcorrespondencebetweenmovinghouseandchildren’sbehaviouralproblems.Peoplearemorelikelytomovefromcolddamphomes,andrentingbringsmorelikelihoodofmoving.

Pacific Children and Housing

Pacificpeopleshavehistoricalexperiencesofhousinginstability,uncertaintyand vulnerability inNewZealand.Until the 1980’sPacificpeople lived inhousingneartheirworkplaces,suchasGearMeatinPetoneandincentralAuckland near service industries and wharves. Gentrification has hadthe effect on Pacific peoples of not being able to afford live in their owncommunities and thenhavingdisrupted anddisjointed relocations to lowcosthousingfarremovedfromworkplaces,familiarschoolsandchurches.SomemembersofPacificcongregationsstilltravellongdistancesonSundaystotheirtraditionalchurchcommunities,eventhoughtheyliveinotherpartsofthecity.

ChildrenofPacificfamiliesarethemostlikelytohavemorethanonefamilyinahouse,withgrandparents,parentsandchildrenincludedinhouseholds.In2006,43%ofPacificpeoples lived incrowdedhousesand in201330%saidtheirhouseswerecold,damp,ortoosmall(TanieluandJohnson,2013).Thistranslatesintoahighpercentage(approximately40%)ofPacificchildrenlivingindeprivedhousing(Children’sCommission2012).

Itishardtofindrentalhousesforextendedfamilyhouseholdsanditislikelythat these familieswill face discrimination from landlords.All in all, lowincomesandhousingwhichdoesnotmeettheneedsofPacifichouseholdsmeanthat26%ofPacificpeoplesliveinsocialhousing.

Crowdedhousingmeansmoreriskofinfectiousdiseasessuchasskinsoresandcoughs.Rentalaccommodationisanotherpartofthisstory.In200658%ofPacificpeoplelivedinrentalhouses,comparedwith33%ofotherNewZealanders,andPacificpeople’shomeownershipwasabouthalfoftherestofNewZealanders.

VahefonuaareleadingthewaywiththeirMatanikolohousingdevelopment.Matanikolo is a Christian response in looking after the poor anddisadvantaged,andinbeinggoodneighbours.WithsevenacresoflandinPukekohe,thefirststepwasplantingthelandtoprovidefoodforfamilies.The dream of a housing development is being realized with funds fromHousingNewZealand,andtheplansincludeahallforcommunityactivities,rentalapartmentsand twelveunits for theelderly.With theassetof land,Vahefonua, Lifewise andHousingNewZealand areworking together forhousingforPacificfamilies,whoinNewZealand,aremoredisadvantagedcomparedtotherestofNewZealand.

The Vahefonua Matanikolo housing project is a Christian response to the poor

and disadvantaged and in being good neighbours.

Matanikolo

Māori Children

HousingneedforMāoriisunderscoredbyfiguressuchas29%ofMāorispendingover30%oftheirincomeonhousing,andovercrowdingisaboutfourtimestherateofEuropeans.InNewZealandMāorichildrenare23timesmorelikelytogetrheumaticfeverthanPākehāchildren.IntheNorththeratesofrheumaticfeverhaveescalatedtodoublewhattheywerein2005.

The prohibition on building more than one house on Māori land is adiscriminatorylegalandbanklendingpolicythatstandsinthewayofMāoriinitiativestoprovidehousingoncollectivelyownedland.Banksdon’tlendoncollectivelyownedlandbecausetheyarenotabletorecoverthepropertyifthereisfailuretopaythemortgage.

TeMatapihiisanewvoiceforMāorihousingsetuptopromotesupportiveprocesses for housing strategies for Māori communities. Te Matapihi isworkingwiththeGovernmentagenciessuchastheDepartmentofBuildingandHousingandtheSocialHousingUnittoseethebuildingofhousessothatmorewhanauareintheirownhousesandonMāoriland(TeMatapihi).Tothisend,MāoriarchitectRauHoskinsopensthewindowonventuresinMāorihousingwithanewenergyconserving, lowcost, tradition-inspireddesignconceptofthe‘nano-whare’(Hoskins2013).

Māori architect Rau Hoskins opens the win-dow on ventures in Māori housing with a

new energy conserving, low cost, tradition-inspired design concept of the ‘nano-whare’.

Canterbury

InChristchurch7,560homeshavebeenred-zonedandarethereforeunusableforhousing.TheChildren’sCommission,aswellasChristianagencieshaveconstantlyadvocatedforaffordableandsocialhousingtobeincludedintherebuildplans.Rebuildingbringsitsownchallenges.Accommodationforallthe professionals, contractors andworkersmeans a huge influx of peoplewithhousingneeds,ontopofthosedisplacedbyEarthquakedamage.

MaryRichardson,DirectoroftheChristchurchMethodistMission,identifiesthemultiple aspects of rebuilding inclusive communities inChristchurch.There were, and are opportunities for low income housing with socialparticipationasacorefocusforthedesign.Suchinnovationsinhousinglinktopublictransport,accesstoschoolsandservices,andenergyconservation.

In reviewing the lost opportunities for greater equity in theChristchurchrebuild,MaryRichardsonwrites ‘wewon’t prosper long ifwe favouronlytheprosperous,becausethesuccessofoureconomydependsnotjustonthesizeofourGDPbutonthereachofourprosperity’(Richardson2013,p.119).The ‘reach’means jobswitha livingwage,andsocialhousing, support forsmallbusinessesandpublicplaceswithparks,librariesandgalleries.Itisaconnectedcity,notadividedone.Thisscenariocouldapplyanywhere-itisjustthatChristchurchhadaspecialopportunity

Auckland

TheeverincreasingpopulationofAucklandisprojectedtocontinue,withtheprospectofreachingnearly2millionby2031.Thiswillbenearly40%ofthetotalpopulationofNewZealand.

Solutions

National Infrastructure

ThecurrentNationalInfrastructurePlansdonothavehousingaspartofsocialinfrastructure.Housingdevelopmenthas economicand social advantages.Itwouldraisethepriorityofaddressingthecurrentshortageofhouses,as

wellastheproblemsofaffordability.Housingshortageisarisktoeconomicdevelopment,andahousebuildingpolicywouldgenerateemploymentandthereforestimulatetheeconomy.Itwouldalsointegratehousingwithotherareasof infrastructuredevelopment including theChristchurchrebuild. Itwouldgiveaccesstothe$17billioninfrastructurefund!

Social Housing

Socialhousingprovidesasubsidyforhousingcostsforthosewithfinancialor social need. It also involves some arrangements for support for thosewithsocialrisksandneeds.Socialhousingisvitalforlowincomefamilies.While thereareplansforHousingNewZealandto improvethequalityofexistingstateownedhouses,therearenoplanstoreplacehousesandexpandthesupply.Andthereisnodoubtthatsupplyisthecoreissueforhousingshortage.

Central government is seeking collaboration with local government andwith NGO’s along the lines of public-private partnership model. TheVahefonuaMatanikoloprojectdemonstrateswhatcanbeachievedthroughcollaboration,andperseverance.

Moreinvestmentinsocialhousingisawaytoreducepoverty;withsnowballeffectsonhealthandeducation.HousingNewZealandtakesamanagementapproach rather than social support, and has plans for the communityhousing sector to takeover someof thepublic responsibility forhousing.Communityhousing agencies bring a social support approach to tenancymanagementwhichbringsextracaretofamiliesinsocialhousing.Proposalsforthetransferofsocialhousingtothecommunitysectorareinprocess.

Income Related Rents and Accommodation Supplement

IncomerelatedrentsapplytothoseinStatehousing,withaformulatokeeprentsat30%ofincome.Incontrast,theAccommodationSupplementispaidasasubsidytothoserentingontheprivatemarket,andhavingtopaymarketrents.Itisbasedonincome.ManysaythattheAccommodationSupplementiseffectivelyasubsidytolandlords,becausetheirprimaryinterestisincomeorprofit.Theirinterestisnotinthesocialresponsibilitytoprovidehousing.The Accommodation Supplement and needs to be revised in ways thatprovideadditionalsupporttofamilieswithchildren.

Concluding note

Pressuresofhousingneedareoneofthemostimportantissuestosolvetoreducetheimpactsofpoverty.Warm,secureaffordablehousingreducesthehardshipoflowincomesandhasbeneficialeffectsforhealthandeducation.

Even in a context of financial stringency, investment in housing is aninvestment in job creation and in meeting housing needs. Solutions liein strengthened state commitments with policy settings to facilitatecollaboration between the State housing agencies, local councils andthe community housing sector. Improvements in housing quality withincentivestoinsulatehousesneedtositalongsideincreasingthesupplyofhouses, appropriate to the needs of families,whanau and cultural familyarrangements.

Foraddressingthehardissueofsupplytomeettothecriticalissue of housing shortage, there is at present nosubstantivegovernmentpolicyformeetingtheneedforlowincomehousingandforsocialhousing.

The Accords with local governments are more oriented to prospects fordevelopersthroughopeningmorelandfordevelopment.ProposalstohandoversocialhousingprovisiontoNGOarestillinprocess.Meanwhileafewanswersaretobefoundemergingincommunitiesjoiningupforcollaborativeventures.

References

Bierre,S.,Howden-Chapman,P.andEarly,L.(eds)(2013)Homes People Can Afford.SteeleRobertsAotearoa.

Children’sCommission(2012)Solutions to Child Poverty in New Zealand: Evidence for Action. ExpertAdvisoryGroupwww.occ.org.nz/__data/assets/pdf_file/0008/10151/Child_Poverty_Report_Web.pdf

Children’sCommissionWorkingPaperNo.18(2012)‘HousingPolicyOptions’.RecommendationstoaddressChildPoverty.

Co-operativeHousinglinks:

Çhristchurch,www.otakaro.org.nz/OtakaroFiles/Peterborough/Peterborough.html,www.rebuildchristchurch.co.nz/blog/2011/9/affordable-sections-for-christchurch-via-cooperative-development

Auckland,www.auckanglican.org.nz/?sid=785;www.earthsong.org.nz/

Hoskins,R.(2013)‘Nanowhare’:PastmeetsfutureinanewmodelforMāorihousing’inBierre,S.,Howden-Chapman,P.andEarly,L.(eds)(2013)Homes People Can Afford. SteeleRobertsAotearoa.Pp.109–114.

NZCCSS(2013)www.nzccss.org.nz/uploads/publications/KeteKupu%2027%20%28web%29.pdf

PIN(2013)www.methodist.org.nz/files/docs/public%20questions/pin%20environmental%20scan13%20a4.pdf

Richardson,M(2013)‘RebuildingDivisions?inRushbrooke,M.(ed)Inequality:ANewZealandCrisis.BridgetWilliamsBooks.NewZealand

Tanielu,R.andJohnson,A(2013) More Than Churches, Rugby and Festivals.AReportontheStateofPacificPeoplesinNewZealand.TheSalvationArmySocialPolicyandParliamentaryUnit.www.salvationarmy.org.nz/research-media/social-policy-and-parliamentary-unit

Stuart,J.(2008)The Wesley Code. Finding a Faith that Matters.PhilipGarsidePublishing.

TeMatapihihttp://communityhousing.org.nz/blog/te-matapihi-new-voice-for-m%C4%81ori-housing

WaikatoSocialHousing(2013)http://www.stuff.co.nz/waikato-times/news/9113623/Sales-soar-for-Waikato-social-housing