A $20 million, 42-apartment affordable housing scheme for Hamilton’s CBD is now poised to start early next year after an earlier failure to secure Government funding.
The plan by the charitable Bridge Housing Trust for the site at the corner of Tristram and Liverpool streets was in jeopardy earlier this year.
It was unexpectedly turned down for funds by the Ministry of Housing and Urban Development.
But now the Westpac bank has confirmed in principle it is looking to step in and lend $6 million, trust general manager Jen Palmer said on Monday, with Hamilton City Council lending $10 million and the trust putting in the rest.
The council’s previously announced loan is coming from the Municipal Endownment Fund (MEF), a tool for investing in commercial property projects that provide community benefit.
Financing arrangement details are being worked through but Palmer hoped to have things finalised within a fortnight.
“It’s really imminent,” she said.
A resource consent for the development was in place and work on the project was due to start early next year.
On Westpac coming to the party, she said: “We’re thrilled with that and we’re very indebted to Hamilton City Council.”
The Westpac involvement was revealed in the agenda for this week’s council economic development committee meeting.
Chairperson Ewan Wilson said the council was still to confirm the deal met the right conditions.
“We are still waiting for final confirmation that the MEF security arrangement is satisfactory.”
Wilson also felt it was good news Westpac was getting involved so the project could start.
“Affordable housing is an important component of our housing offering in the city.”
On what affordable meant in this project’s case, Palmer said the apartments would be targetted at “people who can pay a mortgage but who are at the lower end of the income scale and first home buyers”.
The trust may, for example, end up funding 20% of a purchase, while leasing and affordable rentals were another part of the scheme, she said.
CBD workers were the target market for the apartments.
Wilson said there were another three “commercial” projects that would potentially be getting loans, taking up the rest of the $32.5 million in MEF funds currently available.
He wouldn’t name the three but stressed all would involve loans at commercial terms.
In his report for Thursday’s committee meeting he said: “The discussions underway at present…could see the fund be fully utilised in the coming months, supporting valuable projects and earning solid returns.”
Article extracted from the Waikato Times, published on 22 October 2024