A wide-ranging plan of action in Budget 2008 aims to meet the housing needs of New Zealanders.
As previously announced the government will invest $35 million in capital over the next two years in a shared equity programme to help families buy their first home.
"Shared equity involves the government taking an equity share in a house to reduce the size of an aspiring homeowner's mortgage," Housing Minister Maryan Street says.
New capital spending of $37.8 million over three years will be set aside for the first phase of the Hobsonville development in Auckland's north-west. The development uses Crown land to create up to 500 affordable homes and up to 500 state houses as part of a wider urban development project.
The project also gains operating funding of $5.1 million over four years.
Wellington City Council gets $220 million for modernising its affordable rental housing stock with new funding of $1.5 million through the Papakainga programme to help buy or build houses on Maori land.
Street says Building and Construction Minister Shane Jones is focused on increasing flexibility and reducing costs for affordable home builders, including initiatives to reduce compliance costs for simple starter homes.
Insulation and clean heating funded
In an announcement last week, $22.4 million capital was allocated for insulation and clean heating retrofits for state houses while $23.3 operating funds includes $9.3m for energy saving programmes for businesses and $6m for insulation retrofits for low income families in homes.
An additional $5 million through the Electricity Commission goes towards interest free loans to provide insulation and clean heating retrofits for middle income households.
"Well insulated homes are healthier and more comfortable to live in," Street and Energy Minister David Parker say.
"It's an investment that pays us back through fewer hospital admissions, reduced respiratory illness and lower electricity and gas bills."
