3. KiwiBuild—Housing New Zealand Tenants Affordability and Shared RiskHon JUDITH COLLINS (National—Papakura) to the Minister of Housing and Urban DevelopmentKiwiBuild—Housing New Zealand Tenants Affordability and Shared Risk3. Hon JUDITH COLLINS (National—Papakura) to the Minister of Housing and Urban Development: Does he stand by all his statements and actions on KiwiBuild?Hon PHIL TWYFORD (Minister of Housing and Urban Development): I stand by our actions in building modest homes for New Zealanders with our first homes under construction. And I stand by my statements.Hon Judith Collins: What assurances can he give new KiwiBuild buyers that if a neighbouring Housing New Zealand tenant undertakes antisocial behaviour that Housing New Zealand tenant will be evicted?Hon PHIL TWYFORD: Well people all over this country of different persuasions and colours and tendencies all live together in diverse communities around this country. This Government is not going to engage in the kind of vile demonising of State house tenants and stereotyping State house tenants to try and stigmatise people who need the benefit and the security of tenure that only public housing provides.Hon Judith Collins: I raise a point of order Mr Speaker. I don't believe that the Minister addressed the question to the point of antisocial behaviour. I did not raise issues of ethnicity or diversity. I raised a point about antisocial behaviour.SPEAKER: Yes I think buried in the rhetoric was an answer.Hon Judith Collins: When he discussed with banks about changing their lending criteria to make it easier for property developers and buyers of KiwiBuild to borrow what was the response of the banks?Hon PHIL TWYFORD: We haven't had discussions with banks over changing lending practices for KiwiBuild but we have had a number of very constructive discussions with the financial community about improving lending practices to support off-site manufacturing and in fact lending for multi-unit developments—apartment developments. Those stations are ongoing and constructive.Anahila Kanongata'a-Suisuiki: Tēnā koe e Te Mana Whakawā. Does the housing affordability measure released today impact KiwiBuild?Hon PHIL TWYFORD: The housing affordability measure out today shows that more and more Kiwi families are locked out of homeownership. The affordability of a first home worsened in Auckland Wellington Tauranga Christchurch and Hamilton and Wellington was one of the worst—up 4.7 percent. This is why we need a massive Government intervention like KiwiBuild to turn this around and build modern affordable starter homes for young families. It will take time—SPEAKER: Order! Order!!Anahila Kanongata'a-Suisuiki: How will KiwiBuild make housing more affordable?Hon PHIL TWYFORD: Well through KiwiBuild we're building modest starter homes for families who are locked out of homeownership across New Zealand. We don't accept that that is a situation that should be allowed to continue. By increasing the number of affordable starter homes we will provide young families with the first step on the ladder and the security that homeownership brings.Hon Judith Collins: When he says that the Crown will partner with property developers and share the risk" how is the risk shared and what risk is the taxpayer taking on?Hon PHIL TWYFORD: A very good illustration of this approach is the buying off the plans initiative which I'm pleased to say has over the last month drawn nearly 100 formal submissions from developers who want to partner with the Government through KiwiBuild. There is every likelihood that this initiative will yield several thousand KiwiBuild homes over the next few years. By buying off the plan or underwriting these homes we will not only speed up developments that are currently stalled because of a lack of liquidity but also we will guarantee the supply of affordable housing that the market has so patently failed to deliver.Hon Judith Collins: When he told the Social Services Committee this morning that he would "happily buy off struggling developers" does it mean that he will take on the risk of any future issues such as leaky homes or building faults?Hon PHIL TWYFORD: We're not providing a blank cheque to failing developers but we are incentivising the construction of affordable homes that that party absolutely refused to do. [Interruption] SPEAKER: Order! Order! Now the member will answer the question.Hon PHIL TWYFORD: We're not providing a blank cheque to developers for leaky homes or any other thing but I will note that Bindi Norwell of the Real Estate Institute of New Zealand this morning welcomed the success of the buying off the plans initiative. She said this is exactly the kind of initiative we need to increase the supply of housing. [Interruption] SPEAKER: Order! Order!Hon Judith Collins: How does he propose limiting the Crown's shared risk with property development companies if in the future the property development company either goes broke or is in some other way wound up?Hon PHIL TWYFORD: That's an entirely hypothetical question but we will be exercising sound commercial judgment because this Government is not prepared to stand by and see the housing market fail young Kiwi families. We're willing to roll up our sleeves to work with the private sector and build houses. It's as simple as that."