Accessible housing is scarce. Discrimination and under-supply push disabled people to the margins of the rental market.
Our debt facility funded 22 homes in Auckland, with a mix of one–four bedroom units to meet disabled whānau needs. Backed by the Income-Related Rent Subsidy (IRRS) and Affordable Housing Funding from Ministry of Housing and Urban Development (MHUD), these homes are guaranteed to stay affordable.
This was Homes of Choice’s (HOC) first time accessing external finance. As this is development finance, success for this investment means great homes built for disabled whānau, within budget, and, in time, refinanced to mainstream lenders.
Homes of Choice creates housing for disabled whānau that is affordable, accessible, and designed for dignity.
Why we invested
Transaction Summary
Fund
Te Pae ki te Rangi
Date Invested
August 2023 | March 2024
Instrument
Debt Facility
IRIS+ Category and Theme
Real Estate | Affordable Quality Housing - Property Development
Measuring What Matters
Problem
Underserved demand for accessible housing, particularly affordable, three–and four bedroom homes (e.g. only one other four-bedroom, accessible home was on the market in South Auckland at the time).
What
Access to safe, secure, affordable, and fit-for-purpose accessible housing.
Housing as a foundation to establishing equal opportunity for disabled people to live good lives.
Housing as a foundation to establishing equal opportunity for disabled people to live good lives.
Who
Housing tenants: Tranche one: Disables adults.Tranche two: Whānau with disabled children
How Much
Scale: Number of whānau occupying 22 units during loan term.
Duration: Occupancy rate across loan term.
Depth: Degree of satisfaction among tenants (measured via survey).
Duration: Occupancy rate across loan term.
Depth: Degree of satisfaction among tenants (measured via survey).
Contribution
Homes of Choice is in the process of delivering 22 new homes for disabled whānau in Tāmaki Makaurau.
All are built using Universal Design standards to create environments that are not only accessible, durable and purpose-built, but also attractive and a pleasure to live in.
Impact Risk
Execution risk:
Units aren’t built to standard or to budget.
Tenancy management is inadequate, eg tenants experience poor living conditions.
Units aren’t built to standard or to budget.
Tenancy management is inadequate, eg tenants experience poor living conditions.
Impact Measures
Resident surveys: to ensure high satisfaction rates with homes beyond the provision of physical facilities.
Whether an external finance event has occurred, as our impact thesis centred around building Homes of Choice’s capability to service external lenders.
Annual comparison of rent charged versus market rates.
Whether an external finance event has occurred, as our impact thesis centred around building Homes of Choice’s capability to service external lenders.
Annual comparison of rent charged versus market rates.
