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Those staying in motels for more than seven days would have to start making a 25 percent payment for it, however, in a move the government said was bringing the accommodation into line with other forms of accommodation support.
Speaking at the opening of Auckland City Mission's new safe haven service for homeless women, Housing Minister Megan Woods announced the government's Aotearoa New Zealand Homelessness Action Plan.
The $300 million plan promised to reduce demand for emergency motel accommodation by adding 1000 new transitional housing places on top of the 1300 places introduced since the government was formed.
Housing Minister Megan Woods said motels were only ever intended as short-term emergency accommodation of up to seven days, but the average length of stay had increased to over seven weeks.
"Motels are not a suitable environment for vulnerable individuals, families and whānau and they are also not cost effective," she said.
"Alongside our state house build, this government will increase the supply of temporary accommodation to reduce the use of motels for emergency housing."
She said 63 of the transitional homes were already built and ready to be lived in today.
The plan would also provide another $70 million for support programmes.
Government action plan new initiatives:
- $175m for 1000 additional transitional housing places by the end of 2020
- $20m to work with Māori to prevent homelessness, expand housing supply delivered by Māori
- $13.5m to pilot a rapid re-housing approach for people receiving Emergency Housing Special Needs Grants
- $8.7m for a service helping landlords put MSD clients in private rentals
- $9.3m to support children in emergency housing, e.g. transport to school or early childhood education
Extra funding for support services:
- +$25.6m to the Sustaining Tenancies programme
- +$17.5m for services for young people moving from Oranga Tamariki care into accommodation
- +$16.3m for services helping acute mental health and addiction inpatients moving into communities
- +$19.8m to expand services for people in emergency housing longer than 7 nights
- +$740,000 to programmes providing skills and confidence in managing a private rental
Documents released with the announcement said other public housing was expected to increase by 1600 homes a year, to have provided about 6400 extra homes by June 2022.
"This government inherited a homelessness crisis decades in the making when we took office, that will take time to fix. The previous government left us with a chronic shortage of houses and were selling off state houses that people desperately needed," a statement from Prime Minister Jacinda Ardern said.
"We want to make housing costs as consistent and fair as possible for all families and people who receive government housing support - no matter what type of housing they're in," she said.
"We need to ensure that emergency accommodation is reserved for those who need it most and that there is parity between those receiving different types of housing support."
Associate Minister of Housing (Public Housing) Kris Faafoi spoke about the need for support services alongside extra supply.
"Homelessness is not inevitable and the right support at the right time can prevent someone from becoming homeless or needing emergency housing," he said.
"This action plan aims to fill the gaps in our prevention efforts, gaps which mean too many people are ending up in emergency housing or rough sleeping."
He said local actions needed to be responsive to local problems and needs.
The Sustaining Tenancies programme had undergone a full redesign from the sector, he said, and would be able to support up to 4650 households over three years from 1 July.
Auckland mayor Phil Goff welcomed the announcement, saying it was a step in the right direction.
"This is particularly important for Auckland, where high rates of population growth and high housing costs makes the problem of homelessness more severe than in many other places," he said.
He also lauded the opening of the new City Mission facility for homeless women, Te Whare Hīnātore.
"It's critically important that we provide stability and security, as well as housing, for homeless women who are rough sleeping at a high risk to their safety and wellbeing," he said.
"The facility, which I publicly supported in my Homelessness Policy during the 2019 election, provides 15 self-contained units targeted at women who are homeless and sleeping rough in Auckland. It will provide a safe haven for up to 12 weeks for vulnerable women and help them into a permanent accommodation."