Housing Minister Chris Bishop announced the decision to scrap 212 projects nationwide, citing the need to address the agency’s unsustainable debt. The move was also influenced by a review led by former Prime Minister Sir Bill English, who deemed Kainga Ora unfit for its current purpose.
In Dunedin, the cancellation of these projects is expected to result in a $6 million writedown, with the nationwide cost estimated to exceed $180 million. Among the larger projects axed in Dunedin are developments on Carroll St, Albertson Ave in Port Chalmers, and Stafford St.
Local Labour MPs Rachel Brooking and Ingrid Leary expressed disappointment over the cancellations, particularly highlighting the impact on vulnerable individuals awaiting housing solutions. Brooking criticized the decision, stating that the Carroll St development, in particular, would have provided much-needed homes in a central location.
Despite the cancellations, Kainga Ora confirmed that ten other projects in Dunedin are still proceeding, with completion expected by the end of next year. Chief Executive Matt Crockett explained that the scrapped projects were no longer financially viable or strategically located for the agency.
While there are still 254 projects remaining on the nationwide list, the focus is on prioritizing developments that align with Kainga Ora’s financial goals. The agency aims to improve its financial position by reassessing projects that may no longer be feasible.
The cancelled projects in Dunedin include developments in various locations such as Corstorphine, Mosgiel, and Port Chalmers. The decision to halt these projects has raised concerns about the impact on individuals in need of suitable housing options.
As the community grapples with the repercussions of these cancellations, stakeholders are urging for a more sustainable approach to housing development to address the ongoing demand for affordable housing in Dunedin.
