A loan to build 28 new homes at Longview, Lake Hāwea, has been secured by the Queenstown Lakes District Council (QLDC).

A request by the Queenstown Lakes Community Housing Trust (QLCHT) for the council to guarantee the repayment of interest on a loan was approved unanimously by councillors at yesterday’s (Thursday March 23) council meeting.

Hāwea-based QLDC councillor Cody Tucker said the decision reinforced the “true collaboration” between the housing trust and council which supported the plan for locals to get housing security.

“It’s an awesome thing. It will ensure we can deliver affordable community housing for people who have been pushed out of the market and would otherwise not be able to stay in the region”.

A $13.7M construction contract with Breen Homes to build 28 homes on sections gifted by Longview’s developer Universal Development has been signed.

“We’re underway with the build using our own cash reserves currently,” QLCHT chief executive Julie Scott advised in a letter to QLDC.

Julie said the planned one to four-bedroom homes would be a mix of the trust’s rental and assisted home ownership programmes and the first six houses are on track to be completed “later this year”.

But with limited cash reserves, the housing trust needed a loan.

QLCHT is in the process of finalising the financing for the Longview development with Westpac and to secure the loan the trust asked the QLDC to guarantee the QLCHT’s repayment of up to $2M interest over two years.

Westpac has offered $11.5M for the construction of the 28 homes but the offer is conditional upon obtaining a guarantee from QLDC, Julie said.

“It’s essential we get the guarantee to get the best terms with Westpac.”

QLDC has a partnership agreement with QLCHT which outlines the roles, responsibilities and ways in which council may support the trust, including guaranteeing the trust’s “performance of obligations” with third parties.

“This is a really good example of that partnering relationship we have, when a little hint of risk for either side [means]...we get to deliver the housing at a more affordable price point,” Julie told the councillors yesterday.

Cody said he recognised there were still a few voices in Lake Hāwea who were not as welcoming of development at Longview, but he was excited to have a lot of young people moving to Longview “putting more value into this town”.

This is not the first time QLDC has provided such a guarantee. In 2016, council agreed to a $2M guarantee on the repayment of a $3.6M loan the QLCHT signed with Central Lakes Trust (CLT). The loan was for five years but in 2020 this guarantee was extended for a further five years.

For more information on the QLCHT, listen to the interview with Julie on episode five of The Outlet Podcast.

PHOTO: Wānaka App