Government backs Manawatū social housing project

The Government is providing a cash injection to help Palmerston North City Council complete a programme to provide 78 social housing units for vulnerable tenants.

The $4.7 million to build 28 units in the Papaioea Place redevelopment comes from the $3 billion set aside for infrastructure in the Government’s COVID-19 Response and Recovery Fund.

“The provision of modern and safe housing for some of our most vulnerable citizens has been a strong focus for the Coalition Government. I am pleased that the Government has been able to get behind this project to help Palmerston North City Council complete it,” Shane Jones said.

“Not only will this funding for stage 2 of the Papaioea Place redevelopment provide 28 units in addition to the 50 already built, it will also provide around 68 jobs for skilled tradespeople during construction.”

The redevelopment involves the demolition of old and no longer fit for purpose council housing and replacing them with warm, dry and affordable homes for the elderly, people living with disabilities, those on low incomes and others who face barriers to good housing.

“This building work is a fine example of central and local government working together to fill a need. The council has recognised the need for more social housing in addition to that provided through the Government as our regional populations grow.

“It also means that the local economy and businesses get a much-needed boost at a time when the COVID-19 pandemic is putting pressure on our resources,” Shane Jones said.

Note to editors:

All approvals are in principle and subject to contract negotiations. Investment values are also subject to change.

The funding announced today is part of the $3 billion infrastructure package in the COVID-19 Response and Recovery Fund, announced by Finance Minister Grant Robertson and Shane Jones on July 1. The fund is expected to deliver more than 20,000 jobs across New Zealand and unlock investment with a project value of more than $5 billion.

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