Staunch supporters: Lake Hayes Estate homeowners Omea and Brin Willows, with kids Jaxon, 2, and Kailin, 4, want to help the under-threat Queenstown Lakes Community Housing Trust
Wellington on the warpath
Pulling Queenstown’s affordable housing group from the charities register is the result of in-fighting amongst two Government departments, the trust’s boss says.
The Charities Commission, which last week announced Queenstown Lakes Community Housing Trust will lose its charitable status on September 15, is “out of step with Government policy”, chairman David Cole says.
The Commission’s stance contrasts with the Department of Building and Housing, which has provided $3.5 million for the local shared-ownership scheme since 2006. “One arm of Government is working hard to support and develop charitable housing initiatives while another arm of Government seems determined to destroy them,” Cole says.
The trust’s known about the planned deregistration since last December. A “significant legal submission” to the Commission was hailed by Building and Housing, which has been trying to resolve the dilemma ever since, he adds.
Building and Housing also dished out another million-dollar grant to the trust this year.
In January, mayor Clive Geddes met Charities Commission boss Trevor Garrett who promised to send staff down to see what the trust does – but that never happened, Cole claims.
“In my view, there was a pre-determination about this decision,” Cole says. “Housing Minister Phil Heatley has been involved with this issue for some months.”
Cole doesn’t want to challenge the decision in court. “I just don’t think we should be using community funding on legal fees to defend an issue that can’t be resolved between two Government agencies in Wellington.”
A fired-up Lake Hayes Estate couple is calling for local families to lobby Government to help an affordable housing group that’s under threat.
Brin Willows and his wife Omea say they wouldn’t be living in the Wakatipu if it weren’t for the Queenstown Lakes Community Housing Trust, which enabled them to build a four-bedroom home here this year.
The trust – which has helped 35 households buy their own properties through a shared-ownership programme in the last two years – may not be considered a charity from next month.
The shock move could see dozens of other hard-working families being forced out of Queenstown in the future because of the high cost of housing. “With salaries and the cost of living here – that’s what pushes young families out of the area,” Brin says.
“It’s the community that stands to lose – not just individuals.”
The Charities Commission last week told the trust that its activities are inconsistent with the Commission’s registration guidelines and is likely to be de-registered.
However, Brin, who moved to Queenstown 10 years ago from South Africa, plans to write to Housing Minister Phil Heatley about the situation and is urging others to do the same.
“I challenge all other families who are here – either with the housing trust or on the waiting list – to appeal as well,” says the operations manager for Cromwell-based Goldfields Jet.
He and Omea, a legal executive, say the shared ownership deal means they can have a manageable mortgage and do low-budget activities in the resort with kids Kailin, 4, and Jaxon, 2, without worrying about financial pressures.
“If it wasn’t for the housing trust you’d almost guarantee that everyone they’ve helped wouldn’t be here or wouldn’t be contributing to the local economy,” Brin says. “We’d probably be in Australia, to be honest.”
Omea says they can’t understand why the Commission made the bombshell decision.
“They’ve not actually looked at the big picture and looked at how the housing trust is working for the people – it’s not a money-making scheme, it’s here to help support communities.”
Since setting up in 2006, QLCHT has received about $3.5 million from the Department of Building and Housing.
If the trust is struck off, losing its charitable status will mean it must pay 33 per cent tax on income, including government grants – resulting in having one-third less money for future housing projects, chairman David Cole says.
The Charities Commission’s decision “is no reflection of the trust and the good work it is doing in the community to solve the affordability issues in Queenstown”, Cole says.
None of the scheme’s current homeowners will be affected and nor will a further 22 homes in the pipeline, Cole adds.
The issue in 50 words...
Queenstown Lakes Community Housing Trust faces being struck off the charities register by the Charities Commission on September 15.
This means the trust must pay 33 per cent tax from all income, including Government grants – so there’ll be one-third less money for future
shared-ownership housing projects.
Since forming in 2006, the trust has received $3.5 million from the Department of Building and Housing, had more than 350 people register their interest and has helped 35 households into properties.
Your say
Housing Miracle
I think the Housing Trust are amazing, my family very nearly took the help of the Housing Trust in order to get a house in Queenstown. It will be a shame if they lose money over this, and yes, I agree many more people will move on if they can't settle here.
27 Aug 2010 08:45PMdigga
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