WCC changes Arlington lease, hoping for 104 public housing units sooner

News from WCC
The Wellington City Council has approved a proposal to vary the lease agreement between the Council and Kāinga Ora for the Arlington site in Mt Cook.

The decision supports the delivery of 104 public housing units. It also gives the Wellington City Council a pathway to regain control of the remaining land and secures additional Crown funding for housing support services in Wellington.

This decision means fewer new Kāinga Ora public housing units are proposed than were originally contemplated under the original 2019 Agreement to Lease, but is intended to make it more likely homes are built sooner.

The proposed Kāinga Ora development includes:

– 55 one-bedroom and 37 two-bedroom apartments in a seven-storey building.
– 12 four-bedroom terrace homes.

Councillors also asked officers to look into future development options for the remaining Arlington land. Officers will report back to the Council before any decisions are made regarding the balance of the land.

As part of the agreement the Ministry for Cities, Environment, Regions and Transport has proposed providing $6 million in grant funding over two years to support housing-related services in Wellington.

The funding will be administered through the Council’s existing grants framework and will be subject to strict criteria.

Background:

In 2019, Kāinga Ora (then Housing New Zealand) signed an agreement with Wellington City Council to lease the Arlington site for 125 years and to deliver at least 230 social, affordable and supported living homes. The lease was signed in May 2020.

In October 2021, the then Kāinga Ora Board approved plans for 301 social housing units on the Arlington site at a cost of $296 million.

Kāinga Ora paused the Arlington project in mid-2023 when it became clear it would cost an additional $123 million to deliver the project as originally planned. Since then, they explored various options, balancing housing need in Wellington with ensuring they were spending funds wisely and investing in the right places at the right time. The new development differs from original plans, which didn’t stack up financially.

Consultation:

Before making this decision the Wellington City Council undertook targeted public engagement.

During the two-week engagement in August, 167 written submissions were received. Approximately 44 percent of submitters expressed disappointment about the reduction in proposed Kāinga Ora social housing and encouraged the Council to try and influence Kāinga Ora to build more new housing.

Many submitters encouraged the Council to prioritise new housing, including social housing, in any plans for the balance of the site and viewed this as a way to offset the reduction in Kāinga Ora housing under the variation.

Approximately 35 percent of submitters viewed the proposal as a pragmatic approach to build some new social housing and it should be progressed as quickly as possible.