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National | Housing

National announces $1Bil dollar housing infrastructure fund

The masses have been calling for help for some time now, and today, here at National's annual conference, he answered the call. A $1bil fund to help with infrastructure to build houses. But before everyone starts celebrating, it needs to be said that this isn't charity, and there are strings attached to this funding.

He entered to the sound of appreciative members, and once at the podium, he made more news that will have many more cheering.

John Key says, “The government has decided to set-up a $1bil housing infrastructure fund.”

This is the government's response to growing concerns about housing availability.

This Housing Infrastructure Fund will be used to support councils in establishing infrastructure to build more houses. It is expected that regions like Christchurch, Auckland and Tauranga will find value in this contestable funding.

Key says, “It's a big response, but a necessary response if we're going to see the development of infrastructure at the speed that the government wants to see that.”

But this isn't charity. All of the money given to councils will be borrowed funds, and will need to be returned in time.

Nick Smith says, “The councils do need to show that this investment of a billion dollars is going to deliver more housing.”

Despite them needing to pay the money back, it will be an interest-free loan. So despite it essentially being a loan, the tax payer will still feel the pinch.

Bill English says, “That will be a relatively small cost. The important thing for other tax payers to know is that this money will be paid back.”

Only councils that are considered high growth areas will be eligible to apply for this funding