(File image). Photo: RNZ / Nate McKinnon
Kāinga Ora has paused a controversial social housing development in the Auckland suburb of Blockhouse Bay, saying it is working on its strategy and priorities.
It comes after the entire board of the housing agency was replaced, and it was served with new expectations, including a material reduction in operating losses.
The changes followed the resignation of chief executive Andrew McKenzie last week, with a redundancy payout of about $365,000.
The development, on Marlowe Road and Bolton Street, has been controversial since the beginning, with strong opposition from neighbours, who wanted part of the land to be given to pensioners due to a past land donation agreement with the council.
RNZ revealed Kāinga Ora had spent more than $3 million in the complex up to 19 February, with $1.76m used on consultancy for resource consent and building design.
It had already submitted its second resource consent application to Auckland Council, amid residents' comments that the new plan did not address the issues previously discussed in community meetings.
In its latest update, the housing agency said it would pause the development while it worked with the Ministry of Housing and Urban Development on its asset management strategy, including understanding priorities and financing for the housing renewal program.
However, it said it would continue with the resource consent process and the current site clearance.
"The current earthworks being carried out at the site have been extended until the end of August 2024. The earthworks are aimed at levelling and stabilising the site so that it is ready for future development.
"However, all other work is paused," Kāinga Ora Regional Director Auckland North and West Taina Jones said.
Community leader Benji Nathan was the leader in the fight against Kāinga Ora's development.
He said the news was a bit of a win for the community.
"They have already spent $3 million plus on this redevelopment, and they still don't have a resource consent that's been granted in place.
"Hearing that it's going to be paused, it would hopefully mean that they may come back to the table in terms of listening to the community's feelings as well as sort of going back to what that land was originally gifted for-pensioner housing."
Nathan said the recent shake-up in the state landlord's board meant Kāinga Ora would be held accountable.
"Private homeowners that are landlords have obligations, and so should social housing.
"This is a development that's already had $3 million spent on it, and we don't have a single bit of building on the site. It comes back, I feel, to that lack of community engagement and making sure they get it right the first time."
Jones said the pause on the Blockhouse Bay development was in line with the housing agency's approach to other developments that are in the pipeline for delivery after June 2025 but are not yet contracted or under construction.
"We will still be delivering 117 new homes for social housing that are either in construction or under contract for delivery in the Whau local board area by June 2025."