Guaranteed rental income through emergency housing
About Emerge Aotearoa
Emerge Aotearoa, a not-for-profit NGO, provides a wide range of community-based mental health, addiction and disability support services and social and emergency housing nationwide. Emerge Aotearoa Housing Trust manages the organisation’s social and emergency housing portfolio. The portfolio consists of 165 social and emergency houses. The organisation both owns and leases properties for this purpose. Many of the leased units are acquired through private landlords and Emerge Aotearoa has an excellent track record as a tenant.
The Emerge Aotearoa Housing Trust is a registered Class 1 Community Housing Provider with the Community Housing Regulatory Authority, Ministry of Business Innovation and Employment (MBIE).
Emergency Housing Provider Panel
Emerge has been confirmed as a Ministry of Social Development (MSD) approved Emergency Housing Provider (EHP) for funding subsidies to approved EHPs for the provision of Emergency Housing and associated support services.
To qualify for funding under this initiative an ‘Approved EHP’ has successfully been appointed to the panel, following a successful response/application to MSD for the Invitation to Partner procurement process. In doing so the EHP has demonstrated that it has:
The capacity and capability to provide emergency housing in terms of experience, links with community organizations and sufficient resources/processes (skilled and robust training and staff vetting)
been able to demonstrate how they will provide emergency housing and the provision of support services
shown they have sufficient relationship management skills to work with MSD and effective problem resolution processes in place
organizational stability through a stable governance, financial management, monitoring and employment structures and evidenced financial solvency.
The following provides an overview of this program as it applies to EHPs sourcing housing stock from the private rental market.
What is Emergency Housing?
Emergency housing refers to short-term accommodation for individuals and families who have or may have an urgent need for accommodation because they have nowhere else to stay or are unable to remain in their usual place of residence.
Generally, emergency housing provides a place for vulnerable people to stay while they address their immediate needs and secure longer-term accommodation.
How does the Emergency Housing Subsidy work in terms of the private rental market?
The ‘approved EHP’ seeks preapproval (through an outcome agreement) to accommodate an agreed number of persons. The EHP will then source properties from the private rental market and enter into lease agreements with private landlords (generally up to three years).
A subsidy will be provided to the EHP which is based on the large proportion of the rent and full cost of the associated support services. The EHP will source the balance of funding through other sources such as a heavily reduced rental contribution from its tenant/s.
Emerge Aotearoa seeks to engage with any landlords and property owners who may have property available and are willing to discuss any opportunity to offer tenancies to the organization.
Benefits of renting to an approved EHP
A landlord has a guarantee of their property being rented out on a long term basis of up to three years, with the tenant undertaking regular inspection and management, working in conjunction with the landlord or their agent.
A landlord/owner is required to undertake a Methamphetamine test at the commencement of the tenancy, then the EHP will undertake Methamphetamine contamination testing at the end of every tenancy from thereon to provide continuity of data.
The landlord is guaranteed their rent without any of the usual rent arrears issues.
Stable, long term continuous income 52 weeks of the year regardless of vacancies.
Government funding (subsidy) provided to EHP.
Professional organization with a demonstrable track record and robust management/financial systems.
Support services provided by EHP.
The EHP will maintain a specific fund for any intentional damage to the property to ensure that this is immediately remedied.
For further information, pleas contact Richard Maffey and advise your CPIA number.