A $2 million grant from Nelson City Council’s Housing Reserve will support Habitat for Humanity’s 18-home development on the corner of Rutherford and Examiner streets. 

Mayor Nick Smith today welcomed the announcement by Habitat for Humanity Nelson that its development of much-needed affordable rental homes will proceed. 

“The shortage of housing is one of our city’s greatest challenges. This development, worth about $14 million, increases supply in the central city area, provides affordable rental properties and delivers intensification in a perfect location.” 

Council approved in August 2022 an initial grant of $1 million from its Housing Reserve for the development, which was originally proposed as a partnership with Unite Church. 

“However, Habitat could not make the finances work and came back with a revised model that involved Habitat buying the land from Unite Church. After considering a recommendation from the Community Housing Acceleration Taskforce, Council agreed in December 2024 to provide another $1 million for the development. This additional grant is consistent with the policy adopted in 2023 of providing a contribution of up to $150,000 per housing unit for social and affordable rentals,” Mayor Nick says. 

Community Housing Acceleration Taskforce Chair, Councillor Rachel Sanson, says Habitat for Humanity is a well-respected and proven provider of quality homes and Council is delighted to help support the development of the one, two and three-bedroom homes planned for this Rutherford Street site. 

“With over 1000 families facing housing insecurity across our region, these 18 homes are very much needed, and I look forward to late 2027 when they have been completed and families can move in. As a taskforce and a Council, we have worked hard to support the development of as many affordable homes as we can with the $12 million in the Housing Reserve,” Councillor Sanson says. 

News of this additional $1 million grant for the Habitat development on Rutherford Street comes hard on the heels of the announcement in mid-March that Council had also approved the allocation of $4 million from its Housing Reserve for two projects focused on delivering 34 affordable rental properties within the Maitahi Village development in Kākā Valley. 

The Housing Reserve was formed in 2021 when Council divested its Community Housing portfolio to Kāinga Ora for $12 million. The reserve was created to “work with and support partners who have the ability to deliver social and affordable housing solutions for the community”. On 10 December 2022, Council established the Community Housing Acceleration Taskforce. Its role is to advise how Council can work in partnership to reduce housing insecurity and increase community housing and affordable homes. 

© Scoop Media