6. KiwiBuild—EligibilityHon AMY ADAMS (National—Selwyn) to the Minister of Housing and Urban DevelopmentKiwiBuild—Eligibility6. Hon AMY ADAMS (National—Selwyn) to the Minister of Housing and Urban Development: Has he seen reports on his KiwiBuild eligibility criteria today that stated Needy families who could really use the help will be left out while a couple of doctors making $80000 each will happily move into a nice new home"; if so does he consider his eligibility criteria will ensure that KiwiBuild homes go to those who are most in need?Hon PHIL TWYFORD (Minister of Housing and Urban Development): I haven't seen that report but I do consider that the KiwiBuild eligibility criteria ensure that homes will be bought by the families most in need in three ways. First by excluding investors we ensure the homes go to first-home buyers; (2) by setting an income cap at $180000 we exclude the very well-off while ensuring that families such as teachers tradies and young professionals whose homeownership has plunged in the last decade can once again have a chance at owning a home; and (3) by selling at a fixed price and using a ballot system everyone will have the same chance. Those on lower incomes will not be out-bid by those on higher incomes as they are in the open market.Hon Amy Adams: Does he realise that his income eligibility criteria that includes households with incomes up to $180000 allows households that are in the 15 percent most wealthy in New Zealand to become eligible for KiwiBuild?Hon PHIL TWYFORD: I do realise that and in setting the eligibility cap we looked at the data and saw that the greatest fall in homeownership in the past decade has been in the $80000 to roughly $180000 income range. This income range also comprises half of families with children and these are the young families who less than a generation ago would have realistically expected they would be able to own their own home.Hon Amy Adams: Supplementary.Rt Hon Winston Peters: Supplementary question.Hon Amy Adams: Is the real reason—SPEAKER: The Rt Hon Winston Peters.Rt Hon Winston Peters: Sorry.Hon Amy Adams: I beg your pardon who have you called?SPEAKER: No sorry—I called the Rt Hon Winston Peters.Rt Hon Winston Peters: How many submissions has he received from Judith Collins on this matter of housing and how many has he received from someone who's taken her place while she's temporarily overseas—I think namely Ms Adams? Who's asked the most questions in the past?SPEAKER: Order! Order! The Minister doesn't have responsibility for members asking questions.Hon Amy Adams: Is the real reason the income caps have been set at more than double the median household income that he now accepts that he has failed to build houses that will be affordable for truly middle-income earners so he's had to cast the net to include virtually every first-home buyer to ensure he can get the few houses he's building sold?Hon PHIL TWYFORD: The real reason for the setting of the eligibility criteria is that we've inherited a housing crisis that has dispossessed even the sons and daughters of the middle class who have worked hard who earn good money but who in our country's biggest city find themselves completely shut out of homeownership.Marja Lubeck: Who would miss out if the income cap was lowered or set at the same level as the KiwiSaver HomeStart grant?Hon PHIL TWYFORD: A couple of teachers with around five years' experience may have an income in the $150000 range. The Government was not prepared to set a cap so low that it would exclude hard-working teachers tradies and young professionals who now find themselves locked out of the Auckland housing market.Hon Amy Adams: Will buyers who are beneficiaries of family trusts that own residential property be eligible to apply for a KiwiBuild home?Hon PHIL TWYFORD: Well I don't think that someone with assets—considerable assets—who would have the pick of the homes on the market will choose a modest starter home and go through a ballot process. I just don't think that's realistic.Hon Amy Adams: I raise a point of order Mr Speaker. It was a very straight question—SPEAKER: It was. The member can ask—Hon Amy Adams: —asking for a particular factual matter. The member should tell us if he doesn't know what his policy says.Hon PHIL TWYFORD: It's not our intention to place further restrictions on the eligibility criteria. We don't believe that the scenario that the member faces is at all realistic.Marja Lubeck: Why did the Government choose to adopt a higher income limit than the KiwiSaver HomeStart grant?Hon PHIL TWYFORD: The KiwiSaver HomeStart grant has not worked in Auckland and Queenstown. For example less than 9 percent of HomeStart grants are for homes purchased in Auckland grossly disproportionate to the number of Auckland first-home buyers. The cap is so low that even with the grant available families struggle to find a home that they can buy. We knew that we needed to make sure that KiwiBuild actually responds to families in need.Hon Amy Adams: When answers given on his behalf said that properties could be sold directly off the plans to some buyers without these properties going through a ballot which buyers are going to get this fast-track option?Hon PHIL TWYFORD: In the planning for the sales process for KiwiBuild we have retained the flexibility for later on in the KiwiBuild process—perhaps years three four or later than that when supply will match or exceed demand—in situations where it won't be necessary to put a ballot in place. In that case in that instance it would be the obvious thing to do to allow a direct sale."