Kāinga Ora has scrapped plans for a large intensive housing subdivision in Ohakune, blaming a lack of funding and current economic and market pressures.
The announcement comes after the plans for the mixed housing development was met with strong opposition from a local community group who claimed it was a waste of taxpayer money and not needed in the small North Island ski town.
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The proposed Teitei Drive mixed housing development was announced three years ago and was aimed at meeting “the urgent need for more homes for families in Ohakune”. The plans involved developing a total of 131 residential lots on 9.4 hectares of council land near the Ohakune Carrot Adventure Park.
The first stage of the Teitei Drive housing development had included plans for 44 homes. Image / Kainga Ora
Kāinga Ora lodged the application for the first stage of the development, which comprised 44 residential homes, with the council in July last year. The properties included 14 rental homes for key workers, 15 affordable homes and 15 social homes backing onto the Snowmass subdivision.
In a letter to residents today, Kāinga Ora confirmed it would no longer be going ahead because the project was no longer financially viable and it would not be able to deliver on the affordable housing outcomes.
“As we have progressed further through detailed design and planning phases, it has become clear that the CIP (Crown Infrastructure Partners) funding will not be sufficient to complete the project as it was originally proposed three years ago.”
The funding allocated to develop the land was $5.2m, which according to the latest estimates meant there would be a shortfall of between $2m and $3m.
It also cited current economic and market pressures as further reasons for binning the project.
Kāinga Ora regional director for Taranaki, Whanganui and Manawatū Graeme Broderick said at this stage it had no specific plans about how to solve the housing shortage in the town, but would continue to work with partner agencies to explore all the options.
Those options could include buying existing homes for sale providing they met its requirements, buying land and working with build partners to deliver new homes or replacing some of its existing older stock with modern, warm and dry homes.
Ruapehu mayor Weston Kirton, who only learnt of the decision yesterday, said he was extremely disappointed the Teitei Drive project had been binned because there was a desperate need for affordable housing in both Ohakune and the wider district.
Ruapehu mayor Weston Kirton is disappointed with Kāinga Ora's decision to scrap the project.
“I’m consistently in favour of getting social housing, workers housing and the like to increase real estate stock so this to me was a really disappointing result.”
However, Kirton said the community had been split over the development with some locals not wanting it in their backyard and others recognising there were people living in caravans because a lot of the town’s housing stock was tied up as Airbnbs.
The council would now have to go back to the drawing board to try and find other housing providers to partner with, he said.
Ohakune Residents and Ratepayers Association chairman Barry Murphy, whose group had opposed the development, was “ecstatic” about the decision.
“I’ve had probably about 80 emails from different residents and ratepayers commenting on it – sort of pop the champagne and yay we are in a better state now.”
He said both Kāinga Ora and the council’s claims that there was a lack of housing stock in the town could not be substantiated and pointed out there were more than enough modern homes for sale under about $500,000 to house the 10 individuals and families who were currently on the waitlist for social housing.
There are currently 84 properties in Ohakune listed for sale on OneRoof, down from 91 a month ago. The properties range from $110,000 for a 412sqm section to $2.195 million for luxury accommodation comprising three-bedroom apartments on the town’s main street.
The ratepayers association had also reached out to the council asking to be consulted on any significant matters going forward. It also planned to offer to purchase the Teitei Drive land from the council with the view of donating it to the Carrot Adventure Park.
At the end of last year, the National Government commissioned an independent review of Kāinga Ora to investigate the Crown agency’s financial situation, procurement and asset management.
At the time of the announcement, Housing Minister Chris Bishop said: “It is critical that Kāinga Ora is focused on efficiently building social houses for people in need while also delivering value for taxpayers’ money, and this review will be able to provide recommendations to ensure that these objectives are being met.”
The outcome of the review led by former Prime Minister Sir Bill English is due to provide a report to the Government by the end of March.
- Click here to find more properties for sale in Ohakune
