Russell McVeagh provides support for iwi housing development

Real Estate and Construction Partner Ed Crook and Banking and Finance Partner David Weavers are pleased to have led a team advising Ngāti Whātua Ōrākei Whai Rawa (on a 50% pro bono basis) on an iwi housing initiative that will initially provide 24 new whānau homes in Ōrākei in Tāmaki Makaurau Auckland. This funding model has the potential to deliver papa kāinga housing at scale on subsequent projects.

Under this new funding model, which is a collaboration between Bank of New Zealand (BNZ), Westpac New Zealand Limited (Westpac) and the central Tāmaki tangata whenua, Ngāti Whātua Ōrākei, whānau who meet standard home-lending criteria can secure a loan for papa kāinga housing at standard interest rates on land owned by Ngāti Whātua Ōrākei.

The project also includes a market-first shared ownership scheme for a hapū or iwi group. The shared ownership scheme has opened access to papa kāinga housing to a wider cross-section of Ngāti Whātua Ōrākei whānau.

The freehold interest in the land importantly remains with Ngāti Whātua Ōrākei and each participating whānau member obtains a long-term leasehold interest with security of tenure to own their own whare. The scheme has been designed to maximise the benefits of papa kāinga housing to all stakeholders – whilst, at the same time, delivering a product which is able to be financed by a commercial bank using standard home-lending criteria.

Construction on the new homes is underway. The homes will be situated on Hawaiki Street in Ōrākei, close to the cultural epicentre of Ngāti Whātua Ōrākei, Ōrākei Marae.

"I'm thrilled to have been part of this great collaboration and am looking forward to seeing it come to life later this year," said Ed Crook. "While quite a unique and complex arrangement from a legal standpoint, it is great to see a hugely positive outcome for Ngāti Whātua Ōrākei."

You can read more on this initiative here.

For more information about Russell McVeagh's pro bono work, see our Pro Bono Overview 2023 - Assisting our communities in Aotearoa New Zealand here.