Kāinga Ora, New Zealand’s largest public housing provider, is taking a firmer stance on rent debt, introducing a stricter policy that limits how much rent arrears tenants can accumulate. While the move aims to improve financial accountability, it has also sparked concerns about potential evictions and the impact on vulnerable communities.
New Rent Debt Policy: Stricter Limits and Immediate Action
The government housing agency has set a 12-week cap on rental debt, meaning tenants will not be allowed to accrue more than three months’ worth of unpaid rent. Chief executive Matt Crockett said Kāinga Ora would engage with tenants as soon as they fell behind on payments, with further enforcement actions triggered if they failed to cooperate.
“We will continue to support households who fall on hard times but are making genuine attempts to get back on track with their rent,” Crockett said. “But, through our new rent debt policy, we are drawing a line on how patient we can be.”
For those who refuse to make repayments or engage in a debt recovery plan, Kāinga Ora has warned it will escalate matters to the Tenancy Tribunal, which could lead to evictions. Currently, around 3% of Kāinga Ora tenants have more than 12 weeks’ worth of unpaid rent, with the highest individual debt exceeding $40,000.
Partial Debt Forgiveness: Incentivising Repayment
Despite its tougher stance, Kāinga Ora is also offering partial debt forgiveness to tenants who demonstrate consistent efforts to repay their arrears. Under the new approach, tenants who commit to a repayment plan and stay current on rent will have half of their outstanding debt written off. This measure is expected to result in $8.3 million of the current $16.1 million in unpaid rent being forgiven.
Crockett acknowledged that some of the rent debt accumulated due to Kāinga Ora’s previous lenient approach, particularly during the pandemic when the agency did not aggressively pursue unpaid rent. “We carry a measure of responsibility,” he said. “We’re being pragmatic. We think we’re better off focusing on recovering the remaining debt faster and ensuring current tenants do not get into too much debt.”
Potential Evictions and Uncertain Outcomes
One of the most pressing concerns surrounding the policy change is the fate of tenants who do not comply with repayment plans. Crockett admitted that for tenants facing eviction, Kāinga Ora could not guarantee alternative housing options. “We will try and broker and see if there is a community housing provider option, but other than that, we are not clear exactly where they would go,” he said.
This uncertainty has led to criticism from advocacy groups, including Manaaki Rangatahi, a collective focused on youth homelessness. Spokesperson Brooke Stanley accused the government of using “bullying tactics” and ignoring the complex challenges faced by disadvantaged tenants. “[Kāinga Ora] should be working to understand the issues and provide solutions focused on their care and wellbeing,” Stanley said.
Political and Financial Justifications
The government has defended Kāinga Ora’s stricter rent enforcement, arguing that financial sustainability is necessary for the agency to continue providing social housing. Associate Housing Minister Tama Potaka said the previous government had taken an overly lenient approach, allowing rent debt to balloon without sufficient recovery efforts.
“Those who need support will be helped, but those refusing to pay will face action,” Potaka told Mike Hosking. He emphasised that the goal was not to remove people from their homes but to ensure tenants met their rental obligations.
Financially, Kāinga Ora has been under scrutiny for its management of housing projects. A recent review found the agency was not financially viable and was underperforming. As a result, several large housing developments—amounting to more than 1,500 planned homes—have been placed on hold or are under review, raising further concerns about the future of public housing in New Zealand.