Partnerships unlock possibility at Three Lanes
Christchurch’s newest housing community marks an important milestone for the South Island’s largest non-government provider of community and affordable homes.
Ōtautahi Community Housing Trust (ŌCHT) today officially opened Three Lanes Lyttelton Street, a new community of 65 homes in Somerfield, Christchurch.
The development includes a mix of progressive home ownership, affordable rental and community housing - a true cross section of the city in microcosm.
Three Lanes is designed to help people at different stages of the housing journey, from those in urgent need of housing to low-income earners moving through renting towards home ownership.
Addressing the opening day crowd ahead of cutting the ribbon, Housing Minister Chris Bishop said Three Lanes was a good example of the type of development the Government was proud to support.
The tenure mix reflected community needs, while the 28 single bedroom community housing and affordable rentals reflected sustained need for such properties on the Public Housing Register.
Responsive, reflective developments based on evidence and need would be in the mix for Government investment when its new flexible public housing fund takes effect in 2027, Mr Bishop suggested..
ŌCHT chairman Darren Evans said Three Lanes was the result of partnership and perseverance - and the Trust has the momentum and the scale to deliver many more homes, particularly where its investment is matched by the government.
ŌCHT aims to build 100 homes each year, with 200 homes already moving through planning and consent processes in a strong pipeline through to 2027. ŌCHT can fund 50 of those homes a year by leveraging the strength of its own portfolio, Mr Evans said.
“For the next two years, we hope that central government will match this with an additional 50 contracts per year, to help us deliver the 100 each year to which we aspire here in Canterbury.”
That matching investment would effectively double the impact of government funding, supported by the new financing capacity available through Community Finance and the Community Housing Funding Agency.
When first proposed in 2023, Three Lanes didn’t look viable on paper. ŌCHT had funding for 12 homes through the government’s Progressive Home Ownership Fund, managed by the Ministry of Housing and Urban Development (MHUD).
Even so, the Trust pressed ahead backed by Community Finance, which facilitated KiwiSaver investment that enabled construction to begin a week before the first long-term public housing agreement was approved.
“It was a risk but our financiers, Community Finance, gave us the support and capacity to move the project forward, recognising this is not just one community but has the support of others to make it financially viable.
“Community Finance, you are the ultimate enabler for community housing providers.”
Mr Evans thanked Mr Bishop for supporting the establishment of the Community Housing Funding Agency, a Community Finance subsidiary that will lower long-term debt costs and encourage further reinvestment.
“It will be a great accelerator and has given us confidence to keep on building.”
In his first official engagement since being re-elected, Christchurch Mayor Phil Mauger said the transformative development was what the council in mind when it challenged ŌCHT to find new ways to meet the city’s community and affordable housing challenge.
“And to the Minister, if you have got a problem with money burning a hole your pocket, I’m here to help,” he said.
ŌCHT chief executive Cate Kearney said the Trust has delivered 380 new homes across 17 communities since 2019. It has the financial strength and the partnerships to deliver many more.
She acknowledged the council for “taking a punt” in establishing the trust nine years ago this month, and for its continued support as ŌCHT improved and grew the city’s community and affordable housing.
Three Lanes was the latest supported by the government and MHUD through long term social housing agreements, and the Progressive Home Ownership Fund.
Development partners Consortium Construction, Rangzen, Planz, PXA Architects and myriad specialist consultants had built a new community that will provide homes for generations.
The project has already proven its wider economic value in generating an estimated $15 million in local benefit, supporting around 100 on-site workers, and strengthening the businesses and families connected to it.
Mr Evans said : “In these challenging times, it’s crucial we keep building.”
“It supports our construction partners, like Consortium, to maintain their workforce and deliver exceptional outcomes.”
Those outcomes will soon extend to the people who will call Three Lanes home. Every home is designed to meet Homestar standards, ensuring they are warm, dry, and energy-efficient for years to come.
They are also the first in ŌCHT’s portfolio to feature integrated solar panels, sending energy back to the grid as part of a pilot exploring how solar generation might reduce costs for tenants across other sites.
