Housing Corporation Amendment Act 2001

1: Title
1: This Act is the Housing Corporation Amendment Act 2001.
2: In this Act, the Housing Corporation Act 1974 the principal Act
2: Commencement
Except as provided in subsections (3) to (6) of section 24 section 25(2)
1: Amendments to existing provisions
3: New section 1A inserted
The principal Act is amended by inserting, after section 1
1A: Purpose
The purpose of this Act is to—
a: establish a corporation to administer the Crown's housing operations; and
b: define its objectives, functions, powers, and duties.
4: Interpretation
Section 2 committee Corporation land Minister committee clause 46(1) of Schedule 1A Corporation section 3(1) existing company
a: means HNZ or Community Housing Limited (a company that on the commencement of the Housing Corporation Amendment Act 2001 was duly incorporated under the Companies Act 1993
b: includes any subsidiary (within the meaning of the Companies Act 1993 HNZ section 2(1) of the Housing Restructuring Act 1992 land Minister of Finance of Housing Minister of Housing statement of intent section 41E of the Public Finance Act 1989 subsidiary Companies Act 1993 State Services Commissioner section 3 of the State Sector Act 1988 vesting day
a: in relation to an existing company or an asset or liability of an existing company, means the day on which the order under section 53
b: in relation to an asset or liability of the Crown, means the day on which an order under section 53
5: Establishment of Corporation
1: Section 3(1) the Housing Corporation of New Zealand Housing New Zealand Corporation
2: Section 3
3: The Corporation—
a: is a body corporate; and
b: is a Crown entity for the purposes of the Public Finance Act 1989
4: The Corporation cannot be disestablished except by Act of Parliament.
3: The heading of Part 1 The Housing Corporation of New Zealand Housing New Zealand Corporation
6: New sections 3B to 3D inserted
The principal Act is amended by inserting, before section 4
3B: Objectives of Corporation
The Corporation's objectives are—
a: to give effect to the Crown's social objectives by providing housing, and services related to housing, in a businesslike manner, and to that end to be an organisation that—
i: exhibits a sense of social responsibility by having regard to the interests of the community in which it operates; and
ii: exhibits a sense of environmental responsibility by having regard to the environmental implications of its operations; and
iii: operates with good financial oversight and stewardship, and efficiently and effectively manages its assets and liabilities and the Crown's investment; and
b: to ensure that the Minister of Housing receives appropriate policy advice, other advice, and information, on housing and services related to housing.
3C: Communication of the Crown's social objectives
1: To enable the Corporation to achieve the objective stated in section 3B(a)
2: Each of the Corporation's statements of intent must state—
a: the objectives most recently notified by the Minister; and
b: the steps that the group comprising the Corporation and any subsidiaries proposes to take in the financial year concerned and the next 2 financial years to achieve those objectives.
3: Nothing in subsections (1) and (2) Public Finance Act 1989 or section 20
3D: Other provisions relating to Corporation
Schedule 1A
7: New section 18 substituted
The principal Act is amended by repealing section 18
18: Functions of Corporation
1: The Corporation's principal function is to achieve its objectives.
2: The Corporation's functions include—
a: providing rental housing, principally for those who need it most:
b: providing appropriate accommodation, including housing, for community organisations (in particular for community organisations that provide residential support services for people with special needs):
c: lending for housing purposes, and providing other help relating to housing:
d: giving people (in particular people on low or modest incomes who wish to own their own homes) help and advice on matters relating to housing or services related to housing:
e: undertaking housing and other development and renewal, whether on its own account or on behalf of other persons:
f: acquiring and developing land for housing or other development and renewal, whether by—
i: providing housing amenities, facilities, services, or works; or
ii: providing commercial or industrial amenities, facilities, services, or works; or
iii: providing related amenities, facilities, services, or works; or
iv: doing any other thing:
g: selling, leasing, disposing of, managing, or otherwise dealing with land, whether in the course of housing or other development and renewal or otherwise:
h: providing housing or services related to housing as agent for departments of State or Crown entities:
i: taking action, in relation to or in connection with the provision of housing or services related to housing, provided for in—
i: the Corporation's current statement of intent; or
ii: a notice or agreement under section 20
iii: a plan under section 20A
j: conducting research into, and monitoring trends in, housing and services related to housing:
k: advising the Minister of Housing on housing and services related to housing:
l: any other functions conferred on it by this Act or any other enactment.
3: In performing any of its functions, the Corporation may consult any person or organisation whose views or knowledge it believes will enhance its performance of the function.
4: Subsection (2) does not limit subsection (1).
8: Powers of Corporation
1: Section 19
1: Subject to this Act, any other enactment, and the general law, the Corporation—
a: has full capacity to carry on or undertake any activity or business, do any act, or enter into any transaction; and
b: for the purposes of paragraph (a), has full rights, powers, and privileges.
1A: The Corporation may take any action in the performance of its functions or achievement of its objectives jointly, or in conjunction, with—
a: a local authority; or
b: any other person or organisation that provides housing without having profit or gain as its principal motive; or
c: any other person or organisation.
2: Section 19
6: The Corporation may exercise its powers only for the purpose of performing its functions.
9: Corporation may sell or dispose of all or part of its property
Section 19A
10: New sections 19B to 20C substituted
The principal Act is amended by repealing section 20
19B: Validity of transactions
1: Neither the validity of an agreement, contract, or deed, nor the existence or enforceability of an obligation or right of or in respect of the Corporation or a subsidiary, is affected by—
a: a failure by the Corporation to comply with—
i: a provision of section 3B, section 20, section 30, or Schedule 1A
ii: a provision of a statement of intent or approved plan under section 20A
b: a failure by a subsidiary to comply with—
i: a provision of section 20 or section 30
ii: a provision of Schedule 1A
iii: a provision of a statement of intent or approved plan under section 20A
2: For the purpose only of determining the validity of an agreement, contract, or deed, or the existence or enforceability of an obligation or right of or in respect of the Corporation, every action of the Corporation must be treated as being or having been undertaken—
a: in the performance of its functions; and
b: by the valid exercise of—
i: its powers under this Act; or (as the case may be)
ii: powers conferred on some other person by or under Schedule 1A
19C: Ministerial reviews
1: The Minister may at any time, and for any reason, undertake or commission a review of the Corporation's operations; and in that case the Corporation must take all reasonable steps to co-operate with the review.
2: For the purposes of the review, the Minister may require the Corporation to provide information under section 45B of the Public Finance Act 1989
3: This section does not limit or affect the power of the State Services Commissioner to initiate a review under section 6(a) of the State Sector Act 1988
20: Corporation to give effect to Government policy
1: The Minister may require the Corporation to give effect to the policy of the Government, by—
a: giving the Corporation notice in writing that it is required to give effect to a policy stated in the notice; or
b: giving the Corporation notice in writing requiring it to enter into a written agreement with the Minister to give effect to a policy stated in the agreement.
2: The Corporation must give effect to any applicable policy of the Government (as required under subsection (1)), in—
a: trying to achieve its objectives; and
b: exercising its powers and performing its functions (whether under this Act or any other enactment).
3: The Minister must consult the Corporation before requiring it to give effect to the policy of the Government.
4: In requiring the Corporation to give effect to the policy of the Government, the Minister must not give the Corporation a notice, or require it to enter into an agreement,—
a: relating to a matter in respect of which this Act or any other enactment expressly requires it to act independently; or
b: requiring it, in respect of a particular person, to—
i: make a particular decision, do or refrain from doing a particular act, or bring about a particular result; or
ii: make a decision of a particular kind, do or refrain from doing an act of a particular kind, or bring about a result of a particular kind.
20A: Other provisions relating to requirements
1: Promptly after requiring the Corporation to enter into any agreement, or giving it any notice, requiring it to give effect to the policy of the Government, the Minister must publish a copy of the notice or agreement in the Gazette
2: Within 12 sitting days after requiring the Corporation to enter into any agreement, or giving it any notice, requiring it to give effect to the policy of the Government, the Minister must present a copy of the notice or agreement to the House of Representatives.
3: The Corporation must prepare, and give to the Minister for approval a draft plan stating how it proposes to give effect to the policy of the Government if,—
a: pursuant to a requirement under section 20
b: it is given notice under that section requiring it to give effect to the policy of the Government.
4: Within 12 sitting days after approving a draft plan given under subsection (3), the Minister must present a copy of the approved plan to the House of Representatives.
20B: Compensation of Corporation for providing certain services
1: If under section 20
a: the Crown must pay to the Corporation all or part of that price (as the case requires); and
b: if the policy is for the Corporation to provide housing and related services to persons who are to be required to pay income-related rents rather than market rents for the housing, the agreement or notice concerned must state that the services are to be provided in return for the payment by the Crown to the Corporation of the difference between the amounts of market rents for the housing and the income-related rents charged.
2: If, because its statement of intent requires it to do so, the Corporation provides services that it cannot provide on normal business terms, the Crown may wholly or partly recompense it for doing so.
3: In subsection (1)﻿(b), income-related rents market rents section 42(1) of the Housing Restructuring Act 1992
4: After the vesting day in relation to HNZ, every agreement between the Crown and HNZ entered into by virtue of a requirement under section 7 of the Housing Restructuring Act 1992 section 65 of that Act section 20(1)
5: Nothing in this section limits or affects the generality of section 20
20C: Application of sections 20 to 20B to subsidiaries
Sections 20 to 20B
11: Borrowers to contribute to General Reserve Fund
1: Section 29 General Reserve Fund Corporation's funds
2: The heading to section 29 General Reserve Fund Corporation's funds
12: Securities
Section 25
13: New sections 30 and 30AA substituted
The principal Act is amended by repealing section 30
30: Borrowing powers of Corporation and subsidiaries
1: The Corporation may do any of the things stated in subsection (2) only—
a: with the agreement of the Minister of Finance; and
b: in compliance with any conditions subject to which the agreement was given.
2: The things referred to in subsection (1) are—
a: issue securities for the purpose of providing funds for carrying on its business under this Act, or as consideration for mortgages of land or other securities transferred to it:
b: borrow money (by way of loan, overdraft, or otherwise):
c: grant securities over, or otherwise charge, any of its real or personal property.
3: A subsidiary of the Corporation may do any of the things stated in subsection (4) only—
a: with the agreement of the Minister of Finance; and
b: in compliance with any conditions subject to which the agreement was given.
4: The things referred to in subsection (3) are—
a: borrow money (by way of loan, overdraft, or otherwise):
b: issue securities for the purpose of providing funds for carrying on its business, or as consideration for mortgages of land or other securities transferred to it:
c: grant securities over, or otherwise charge, any of its real or personal property.
5: The Corporation may seek the Minister of Finance's agreement for the purposes of subsection (1) or subsection (3)—
a: when it submits a statement of intent or modified statement of intent to the Minister under the Public Finance Act 1989
b: when the Minister gives it a notice, or enters an agreement with it, under section 20
c: at any other time.
30AA: Loans deemed to have been lawfully raised
So far as concerns any lender or holder,—
a: all money borrowed by the Corporation or a subsidiary must for all purposes be treated as having been borrowed in accordance with section 30
b: all securities and charges issued, granted, or varied by the Corporation or a subsidiary must for all purposes be treated as having been issued, granted, or varied in accordance with section 30
c: the following must for all purposes be treated as having been undertaken in accordance with section 30
i: all actions taken by the Corporation or a subsidiary in the course of any borrowing or proposed borrowing:
ii: all actions taken by the Corporation or a subsidiary in the course of the issue, granting, or variation or proposed issue, granting, or variation of any securities or charge; and
d: the lender or holder does not have to inquire whether, or to what extent, authority has been given under that section.
14: Securities issued by Corporation to be guaranteed by the Crown
Section 31(1) of the Corporation issued by the Corporation before the commencement of the Housing Corporation Amendment Act 2001
15: Sections 33 to 37, and 39 repealed
Sections 33 to 37 39
16: New section 40 substituted
The principal Act is amended by repealing section 40
40: Distribution of profits
1: The Corporation must pay its surplus for each financial year into the Crown bank account, unless the Minister authorises the Corporation to keep all or any part of it.
2: In subsection (1), surplus
17: Annual report
Section 42
1: As soon as is practicable after the end of each financial year, the Corporation must give the Minister a report on—
a: its activities and performance for that year; and
b: the activities and performance for that year of each of its subsidiaries.
1A: The report must state—
a: the fees and other benefits paid to individual members (including any fees or other benefits paid by virtue of their being directors of a subsidiary); and
b: in $10,000 bands, the number of employees of the Corporation or any subsidiary receiving total gross remuneration of more than $100,000; and
c: the total value of all compensation payments and other benefits (however described)—
i: paid or given by the Corporation during the financial year to or for the benefit of people in respect of their ceasing (in that year or earlier) to be a member, officer, or employee of the Corporation; or
ii: paid or given by the Corporation or a subsidiary during the financial year to or for the benefit of people in respect of their ceasing (in that year or earlier) to be a director, officer, or employee of a subsidiary; and
d: the number of people to or for the benefit of whom payments or benefits of a kind referred to in paragraph (c) were paid or given.
18: Protection of name of Corporation
1: Section 43
1: No company or other body corporate may be incorporated or registered under any enactment in New Zealand under—
a: the name Housing Corporation of New Zealand
b: the name Housing New Zealand Corporation
c: any other name that in the opinion of the Registrar of Companies so resembles either of those names as to be calculated to deceive.
2: No person other than the Corporation may (alone or with any other person or persons) trade or carry on business under, or in any other way use as the name or description of an unincorporated body or organisation,—
a: the name Housing Corporation of New Zealand
b: the name Housing New Zealand Corporation
c: any other name so resembling either of those names as to be calculated to deceive.
2: Section 43
2A: Subsections (1) and (2) do not prevent HNZ from continuing to use the name Housing New Zealand
19: Procuration fees
Section 44
20: Corporation's liability for taxes and rates
Section 45 1955 1993
21: New section 49A inserted
The principal Act is amended by inserting, after section 49
49A: References to Housing Corporation of New Zealand
Every reference to the Corporation under its former name of the Housing Corporation of New Zealand in any enactment, agreement, contract, deed, or other document enacted, entered into, or created before 1 July 2001 must be read as a reference to the Corporation under its present name.
2: New Parts 6 and 7 of principal Act
22: New Parts 6 and 7 inserted in principal Act
The principal Act is amended by inserting, after Part 5
6: Restructuring of housing entities
51: Interpretation
In this Part, unless the context otherwise requires,— assets
a: choses in action and money:
b: goodwill:
c: rights, interests, and claims of every kind in or to property, whether arising from, accruing under, created or evidenced by, or the subject of, an instrument or otherwise, and whether liquidated or unliquidated, actual, contingent, or prospective liabilities rights Housing New Zealand Limited to become subsidiary of Corporation
52: Vesting in Corporation of the Crown's shares in Housing New Zealand Limited
1: On the commencement of the Housing Corporation Amendment Act 2001, the shares in the capital of the company held immediately before that commencement by the responsible Minister and the Minister of Finance vest in the Corporation.
2: In subsection (1), company responsible Minister section 2(1) of the Housing Restructuring Act 1992 Transfer to Corporation of assets, functions, liabilities, and obligations of existing companies
53: Vesting orders
1: The Governor-General may, by Order in Council made on the recommendation of the Minister,—
a: vest in the Corporation—
i: all the assets and liabilities of an existing company; and
ii: any assets of the Crown used principally for the purpose of the Corporation or that existing company; and
iii: any liability of the Crown arising from the operations of the Corporation or that existing company; and
b: confer or impose rights or obligations on the Corporation in relation to any asset or liability vested; and
c: direct any person or authority to register, record, or take notice of any thing done by the order, the consequential effect of section 54
2: The Minister—
a: must not recommend the making of an order vesting all the assets and liabilities of an existing company in the Corporation without first considering—
i: the company's obligations to its creditors; and
ii: the likely effect of the vesting on those obligations; and
b: must not recommend the making of an order vesting any liability of the Crown in the Corporation unless satisfied that it was incurred in the process of or for the purposes of the performance of the functions of the Corporation or the existing company concerned; and
c: must not recommend the making of an order conferring or imposing a right or obligation on the Corporation in relation to any asset or liability unless satisfied that it is necessary or desirable to do so because of the vesting of the asset or liability in the Corporation.
54: Additional effects of orders
On and after the vesting day,—
a: every reference to the existing company concerned in any contract, lease, notice, order, proceedings, regulations, or other document has effect as a reference to the Corporation; and
b: to the extent that the order concerned vests an asset or liability of the Crown in the Corporation, every reference to the Crown (whether as Her Majesty, the Crown, or a Minister of the Crown) in any contract, lease, notice, order, proceedings, regulations, or other document relating to the asset or liability (being a reference to the Crown by virtue of its status as owning the asset or being liable for the liability) has effect as a reference to the Corporation; and
c: the Corporation has all the rights, obligations, privileges, and immunities of the existing company concerned (and of any officer or employee of that company acting as an officer or employee of that company), and all the rights, obligations, privileges, and immunities of the Crown as aforesaid (other than rights, obligations, privileges, and immunities that the Crown has only by virtue of being the Crown), in relation to all appeals, applications, objections, and other proceedings before any authority, court, tribunal, or person acting judicially, relating to any asset or liability vested by the order concerned.
55: Records and registers
1: Except as provided in section 53(1)﻿(c)
2: An order under section 53 section 54
3: In the absence of evidence to the contrary, it is sufficient proof that any asset or liability is vested in the Corporation if a person presents to a registrar or any other person an instrument, whether or not comprising an instrument of transfer,—
a: executed or purporting to be executed by or on behalf of the Corporation; and
b: relating to any asset or liability held by an existing company or the Crown immediately before the vesting day; and
c: containing a recital that the asset or liability has vested in the Corporation under this Act.
56: Vesting to take effect as amalgamation for certain purposes
1: For the purposes of the Inland Revenue Acts (within the meaning of section 3(1) of the Tax Administration Act 1994
a: the vesting of the assets and liabilities of an existing company under section 53
b: the Corporation must be treated as an amalgamated company; and
c: the company must be treated as an amalgamating company; and
d: the company must be treated as having ceased to exist on the vesting day.
2: If the assets and liabilities of an existing company vest in the Corporation under section 53
a: subparagraphs (v) and (vi) of section FE 6(5)﻿(a) and subparagraphs (iv) and (v) of section FE 7(1)﻿(a) of the Income Tax Act 1994
b: for the purposes of section FE 10 of that Act
3: For the purposes of the Financial Reporting Act 1993 section 53 Companies Act 1993
4: Subsections (1) to (3) apply as if the Corporation were a company within the meaning of the Companies Act 1993
5: Subsections (1) and (2) override section 45
57: Certain matters not affected by vesting
Nothing effected or authorised by this Part—
a: places the Crown, the Corporation (or any member), an existing company, or any other person in breach of, or default under, any contract, or in breach of trust, or in breach of confidence, or otherwise makes any of them guilty of a civil wrong; or
b: gives rise to a cause of action against the Crown, the Corporation or any member, an existing company, or any other person; or
c: gives rise to a right for any person to—
i: terminate or cancel or modify a contract or an agreement; or
ii: enforce or accelerate the performance of an obligation; or
iii: require the performance of an obligation not otherwise arising for performance; or
d: places the Crown, the Corporation (or any member), an existing company, or any other person in breach of any enactment or rule of law or contractual provision prohibiting, restricting, or regulating the assignment or transfer or issue of any asset or liability or the disclosure of any information; or
e: releases any surety wholly or in part from all or any obligation; or
f: invalidates or discharges any contract or security; or
g: affects the Corporation's rights or liabilities under or in respect of any guarantee relating to the liabilities of an existing company given by or to the Corporation.
58: Property or liabilities vested in Corporation
If any asset or liability of the Crown is vested in the Corporation under this Act,—
a: the Crown remains liable to any third party as if the asset or liability had not been vested, but must be indemnified by the Corporation in respect of any liability to the third party:
b: any satisfaction or performance by the Corporation in respect of the asset or liability is also deemed to be satisfaction or performance by the Crown:
c: any satisfaction or performance in respect of the asset or liability by any third party to the benefit of the Corporation is also deemed to be to the benefit of the Crown.
59: Transfer of contracts and leases
1: Before the vesting day,—
a: an existing company may transfer to the Corporation a specified right or benefit under a contract or lease to which it is a party; and
b: the Corporation may transfer to an existing company a specified right or benefit under a contract or lease to which it is a party, or a right or benefit transferred to it under paragraph (a)
2: The transfer does not prevent the transferor from exercising or enjoying the right or benefit transferred.
3: The transfer may not be made unless—
a: the proposed transferee has agreed to it; and
b: written notice of it has been delivered to the proposed transferee, and to every other party to the contract or lease.
4: The transfer is binding on every party to the contract or lease.
60: Application of Privacy Act 1993
1: For the purposes of the Privacy Act 1993
a: the use by the Corporation or its employees of any information gathered or held by an existing company is a directly related purpose; and
b: the use by an existing company or its employees of any information gathered or held by the Corporation or another existing company is a directly related purpose.
2: Subsection (1)
7: Transfer of employees to Corporation
61: Interpretation
In this Part, unless the context otherwise requires,— employment agreement section 5 of the Employment Relations Act 2000 old agreement transferred employee section 62
62: Transfer of employees to Corporation
The Corporation may appoint to a position in its employment a person who is—
a: an employee of an existing company; or
b: an employee of a department listed in the First Schedule of the State Sector Act 1988
63: Consultation
The Corporation must not appoint a person to a position in its employment under section 62
64: Effect of old employment agreement
Unless it provides otherwise, a transferred employee's old agreement continues to apply to him or her during the period referred to in section 65
a: entered into with the Corporation, rather than the former employer; and
b: binding on him or her, the Corporation, and any other party to it other than the former employer.
65: Period during which old agreement applies
The period during which a transferred employee's old agreement continues to apply begins on his or her appointment to a position in the employment of the Corporation under section 62
a: he or she—
i: ceases to be an employee of the Corporation; or
ii: is appointed to some other position in the employment of the Corporation; or
b: any of the conditions of employment applying to him or her under it are varied (otherwise than under section 67
66: Circumstances in which new employment agreement to apply
The conditions of employment of a person appointed to a position in the employment of the Corporation under section 62
a: he or she is appointed to some other position in the employment of the Corporation; or
b: any of the conditions of employment applying to him or her under his or her old agreement are varied (otherwise than under section 67
67: Changes in duties or location
1: If during the period referred to in section 65 section 62
a: his or her conditions of employment may be varied by agreement to reflect that change; but
b: the varied conditions must be no less favourable than those he or she was entitled to under his or her old agreement.
2: Subsection (1) overrides section 64
68: Transfer not enough to break continuous employment
For the purposes of any provisions of a transferred employee's old agreement relating to continuity of service, his or her appointment to a position in the employment of the Corporation under section 62
69: Transfer not enough to entitle employee to redundancy or severance payment
A transferred employee is not entitled to receive compensation for redundancy, or a severance payment, because—
a: the position he or she held in the existing company or department concerned has ceased to exist; or
b: he or she has ceased by virtue of his or her appointment to a position in the employment of the Corporation to be an employee of that company or department.
23: New Schedule 1A inserted in principal Act
The principal Act is amended by inserting, before Schedule 1 Schedule 1
3: Consequential amendments and repeals
24: Consequential amendments
1: The enactments named in Schedule 2
2: Sections 49 50 Housing Corporation of New Zealand Corporation
3: The Housing Restructuring and Tenancy Matters section 53 Schedule 3
4: Schedule 1 Immigration Act 1987 section 53 Housing New Zealand Corporation
5: The following enactments are amended, with effect on the day on which the order under section 53 of the principal Act relating to HNZ comes into force, by omitting the item Housing New Zealand Limited
a: Schedule 18 Income Tax Act 2004
b: Schedule 1 Official Information Act 1982
c: Part 2 Ombudsmen Act 1975
d:
6: Schedule 2 Housing Restructuring (Income-Related Rents) Amendment Act 2000 section 61H(2) retail regional Subsection (3) amended 1 July 2006 section 5(2)﻿(c) Housing Restructuring and Tenancy Matters (Information Matching) Amendment Act 2006 by inserting the words and Tenancy Matters Restructuring Subsection (5)﻿(a) amended 1 April 2005 section YA 2 Income Tax Act 2004 by substituting the words Income Tax Act 2004 Income Tax Act 1994 Subsection (5)﻿(d) repealed 25 January 2005 section 200 Crown Entities Act 2004
25: Certain enactments consequentially repealed
1: The following enactments are repealed:
a: the Title of the principal Act:
b: sections 5 to 17 28 30A 41A 43A(3) 47
c: the enactments specified in Schedule 4
2: Sections 7 65 and Tenancy Matters section 53 Subsection (2) amended 1 July 2006 section 5(2)﻿(c) Housing Restructuring and Tenancy Matters (Information Matching) Amendment Act 2006 by inserting the words and Tenancy Matters Restructuring