Modest housing demand expected

A move by the Government to unlock tribal land for housing has been welcomed, but housing development could still be years away in the South.

Housing Minister Phil Heatley announced yesterday Maori wanting to build or buy a home on ancestral land would be able to get a $200,000 loan, with no deposit, from Kiwibank.

"It is difficult for Maori to own a home on multiple-owned Maori land," Mr Heatley said.

"The special nature of Maori land means it cannot be sold, which means banks are unable to meet their standard requirements for mortgage security."

Loan levels in more expensive areas, such as Queenstown, may be negotiated up to $350,000.

Under the Kainga Whenua scheme, the Crown would act as a guarantor for qualifying home loans, Kiwibank is the sole lender and Housing New Zealand would insure the loan.

Mr Heatley conceded demand for the scheme might be modest, as building on multiple-owned Maori land was a long and complicated process.

Ngai Tahu Maori Law Centre barrister Desiree Mahy, of Dunedin, said the move was a positive one from the Government, but development could take years.

Land with multiple ownership was difficult to built on but "Maori land was even more difficult", she said.

"It can take years."

At present, the community law centre dealt with 10 inquiries about Maori land each week, and this was expected to increase as a result of the announcement.

It was common for hundreds of descendants to have rights to ancestral land, and people wanting to build on that land would be required to have permission from those other owners, and then apply to the Maori Land Court, she said.

Less than 5% of land in Otago was tribal land, with much of that land on the Otago Peninsula, Purakaunui, Moeraki, Karitane and Taieri.

Perpetual Trust Ltd client relationship manager Martin Haanen, who acts as administrator for the Te Rauone board which has more 50 leasehold sections in Harington Point Rd, also welcomed the initiative.

"This will appeal particularly to those close Maori families, where they can all support each other in providing a family home on their ancestral lands.

"The Kainga Whenua initiative will be a valuable tool in helping Maori get back, not only get in touch with their land, but get back on their land."

University of Otago Te Tumu School of Maori, Pacific, and Indigenous Studies lecturer Paerau Warbrick said the Government needed to be congratulated on the scheme as it would "enable whanau to build on their multiply-owned traditional lands".

Maori Party co-leader Tariana Turia said the package would ensure affordable Maori housing.

"We know that most Maori have a strong desire to own their own homes, but barriers such as low incomes, poor access to finance or inconsistent and unco-ordinated policy responses have not aligned with Maori housing aspirations," she said.

- hamish.mcneilly@odt.co.nz [1]

The scheme
- A house needs to be built on wooden piles.
- One storey of at least 70sq m.
- Located on mainland North or South Islands.
- Have reasonable road access.
- Have to live in the house full-time.
- Be a first home buyer, and provide proof of income (under $85,000 a year).
- Have a licence to occupy the land on which you wish to build.

Source: Housing New Zealand