20 oct. 2014 - Ministry of Social Development: Social Housing Purchasing Trial

Description:

The Social Housing Purchasing Trial commenced in parts of West Auckland and South Auckland.
The purpose of the trial was to test a contestable purchasing process to see how the market responded to the process, and gather information about provider behaviour and price. The trial created a contestable process between Housing New Zealand Corporation and other social housing providers by:
• giving contracted housing providers in the trial areas visibility over a common waitlist of clients on an on-going basis – a full list of clients and as much information as possible about those clients;
• enabling providers to make offers to the Ministry of Social Development to house the same clients off the waitlist over a timeframe that allows for contestability; and
• giving clients choice where there is more than one reasonable offer to house them.
The Trial was designed to encourage diversity in the social housing market and to test the impact of publishing the social housing waitlist to providers on the placement of people in social housing. The trial was intended to test the following policy questions:
• how did providers behave when they are given a wider range of clients they could potentially house and information on the characteristics and needs of those clients?
• which cohorts of clients were selected by providers and which were not selected?
• did providing a wider range of clients lead to better matching of clients to properties, and better matching of clients to providers?
• what did the trial tell us about the price of housing clients?
• did providers prefer the arrangements under the contestable trial over non-trial arrangements?
• were clients housed in the trial area more likely to accept offers than in a non-trial area?
Lowering market rents was not a core objective of the trial. Value for money and the ability to lower costs was to be achieved through making better matches for a tenant’s needs.
The Social Housing Purchasing Trial was scheduled to run for six months, with an evaluation to be completed by May 2015.

Source: https://www.msd.govt.nz/about-msd-and-our-work/about-msd/history/social-assistance-chronology-programme-history.html

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