$48 million later, Kāinga Ora confirms it may stop Arlington development

Tuesday, 24 September 2024

Social housing agency Kāinga Ora is considering giving up on its Arlington development in Wellington, leaving a $48m nearly blank site while 723 “at risk” people sit on the capital’s social housing wait list.

The Mount Cook social housing complex was demolished in 2020 with plans for a 300-home social housing redevelopment, housing 900 people on a 17,000-square-metre site. $296m was budgeted, the site was cleared and foundations were installed for a new build before it was paused.

Kāinga Ora greater Wellington regional manager Vicki McLaren said work on the site, where $48m had already been spent, was on hold while plans and costs were reviewed.

“Work on the site may recommence once we have finalised design options and consulted with the Government,” she said.

But a Kāinga Ora spokesperson confirmed it was considering all options, including not doing recommencing work at all.

The Ministry of Social Development has 744 people in Wellington City on the waiting list for social housing. Of those, 723 were priority A meaning they are “considered at risk and includes households with a severe and persistent housing need that must be addressed immediately”.

Residents’ group Mount Cook Mobilised chairperson Peter Cooke last week wrote to Housing Minister Chris Bishop urging the government to push on with a “staged” development by building “what is currently financially viable now and revisiting the remaining phases when resources permit”.

“This approach would ensure early use of the site and deliver much-needed homes sooner, while safeguarding the broader vision for the area,” he wrote.

Pukehīnau/Lambton ward councillor Iona Pannett said it was “scandalous if the land is not being developed when there is so much need”. Cooke’s idea of a staged development was “excellent” and showed the social housing had community support.

Fellow ward councillor Geordie Rogers said it was “unacceptable” that the site sat empty while there was such a pressing need for social housing. He, with mayor Tory Whanau, had written to Bishop asking for an update. Like Cooke, they were yet to get a reply.

Wellington Central MP Tamatha Paul said the 300 homes were needed and the community had an expectation they would be delivered.

“There is also a tremendous need with about 3000 people on the public housing wait list [across the Wellington region],” she said.

“Already $48m has gone into preparing the site so we need to get on with it.”

Bishop said the project was paused in October after tenders came in “significantly higher” than the budgeted $296m. Kāinga Ora has been looking at options for better value for money since then. He was getting a briefing from Kāinga Ora about options.

“Clearly there is a need for new housing in Wellington,” he said.

“I am encouraging Kāinga Ora to explore different options for use of the site, including with other developers.”

Wellington City Missioner Murray Edridge did not think Kāinga Ora could scrap the project having spent $48m on it already.