KO budget cost changes teitei
Ohakune Ratepayers and Residents' Society Inc made this Official Information request to Kāinga Ora–Homes and Communities
The request was partially successful.
From: Ohakune Ratepayers and Residents' Society Inc
Dear Kāinga Ora–Homes and Communities,
== Supporting facts ==
The original CIP applications contained statements that the Teitei Drive property was shovel ready and the consent was simple and wouldnt require fast track
On 4th April 2023 an agreement was signed to provide 15/15/14 homes at Teitei Drive using $5.2m of Government/CIP funding.
- The next month (may 2023) there were internal discussions that this amount would need to be topped up to $7.5m, with KO funding the $2.3m shortfall
- In June and July, internal emails show the amount was increased by $2.3m with KO funding the shortfall by "selling houses"
- OIA's reveal that costs to provide services (potable water main & high pressure sewer outflow) to/from the boundary of Teitei would be a burden on RDC and not funded by the $7.5m
With KO being partner to the project and a decision maker DPM, I have the following questions.
1./ How much was RDC to fund for external development outside the boundary
2./ How much was RDC to receive for the sale of Teitei to fund point 1
3./ What changed between the shortfall of $2.3m discovered 1 month (May 2023) after contract signing (April 2023), and the shortfall that ultimately killed the project with letter sent end of feb 2024
4./ "The Partners" advertised "Affordable" housing and "Workers Accommodation" throughout campaign , knowing $7.5m or $170,454 (EXCL GST) average per lot and before any cost overruns, please provide supporting documentation to support the claim of being affordable when compared to market available lots (with more land) under this price being available.
5./ Please provide budget costs with breakdown that made up the $5.2m originally anticipated for development, then the budget cost shortfall breakdown discovered between may-jury, and then the same for the budget costs breakdown referred to in letter released Feb 2024 stating the shortfall.
Yours faithfully,
Ohakune Ratepayers and Residents' Society Inc
From: Kainga Ora Correspondence
Kāinga Ora–Homes and Communities
Tēnā koe Ohakune Ratepayers’ and Residents’ Society
Thank you for your email of 20 March 2024 to Kāinga Ora – Homes and
Communities, requesting the following information about the proposed
development at TeiTei Drive, Ohakune, under the Official Information Act
1982 (OIA):
1./ How much was RDC to fund for external development outside the boundary
2./ How much was RDC to receive for the sale of Teitei to fund point 1 3./
What changed between the shortfall of $2.3m discovered 1 month (May 2023)
after contract signing (April 2023), and the shortfall that ultimately
killed the project with letter sent end of feb 2024 4./ "The Partners"
advertised "Affordable" housing and "Workers Accommodation" throughout
campaign , knowing $7.5m or $170,454 (EXCL GST) average per lot and before
any cost overruns, please provide supporting documentation to support the
claim of being affordable when compared to market available lots (with
more land) under this price being available.
5./ Please provide budget costs with breakdown that made up the $5.2m
originally anticipated for development, then the budget cost shortfall
breakdown discovered between may-jury, and then the same for the budget
costs breakdown referred to in letter released Feb 2024 stating the
shortfall.
Kāinga Ora is considering your request under the OIA. We will endeavour to
respond as soon as possible, and in any event no later than 19 April 2024,
being 20 working days after the day we received your request.
If we are unable to respond to the request by this date, we will notify
you of an extension of the timeframe. We may also be in contact with you
sooner if we require clarification of the request to assist with our
response.
Please also note that it is our policy to proactively release our
responses to OIA requests where possible. We do not publish requestors’
personal information.
Ngā mihi
The Government Relations Team
[1]www.govt.nz - your guide to finding and using New Zealand government
services
Any opinions expressed in this message are not necessarily those of Kāinga
Ora. This message and any files transmitted with it are confidential, may
be legally privileged, and are solely for the use of the intended
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for delivery to the intended recipient, you have received this message in
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Please:
(1) reply promptly to that effect, and remove this email, any attachment
and the reply from your system;
(2) do not use, disclose or act on this email in any other way. Thank you.
www.govt.nz - your guide to finding and using New Zealand government
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Any opinions expressed in this message are not necessarily those of Kāinga
Ora. This message and any files transmitted with it are confidential, may
be legally privileged, and are solely for the use of the intended
recipient. If you are not the intended recipient or the person responsible
for delivery to the intended recipient, you have received this message in
error.
Please:
(1) reply promptly to that effect, and remove this email, any attachment
and the reply from your system;
(2) do not use, disclose or act on this email in any other way. Thank you.
References
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From: Kainga Ora Correspondence
Kāinga Ora–Homes and Communities
Tēnā koutou Ohakune Ratepayers’ and Residents’ Society
Thank you for your email of 20 March 2024 to Kāinga Ora – Homes and
Communities, requesting the following information under the Official
Information Act 1982 (OIA):
1./ How much was RDC to fund for external development outside the boundary
2./ How much was RDC to receive for the sale of Teitei to fund point 1 3./
What changed between the shortfall of $2.3m discovered 1 month (May 2023)
after contract signing (April 2023), and the shortfall that ultimately
killed the project with letter sent end of feb 2024 4./ "The Partners"
advertised "Affordable" housing and "Workers Accommodation" throughout
campaign , knowing $7.5m or $170,454 (EXCL GST) average per lot and before
any cost overruns, please provide supporting documentation to support the
claim of being affordable when compared to market available lots (with
more land) under this price being available.
5./ Please provide budget costs with breakdown that made up the $5.2m
originally anticipated for development, then the budget cost shortfall
breakdown discovered between may-jury, and then the same for the budget
costs breakdown referred to in letter released Feb 2024 stating the
shortfall.
Kāinga Ora has considered your request under the OIA, and a response was
due with you today. In regard to your request, I am extending the
timeframe for providing you with a response by up to an additional 20
working days, to Monday 20 May 2024. This extension is made in accordance
with section 15A(1)(b) of the Act, consultations necessary to make a
decision on your request are such that, under the present circumstances, a
proper response cannot reasonably be made within the original time limit.
Please note that Kāinga Ora will endeavour to provide you with a response
as soon as possible within this extended timeframe.
Ngā mihi
The Government Relations Team
www.govt.nz - your guide to finding and using New Zealand government
services
Any opinions expressed in this message are not necessarily those of Kāinga
Ora. This message and any files transmitted with it are confidential, may
be legally privileged, and are solely for the use of the intended
recipient. If you are not the intended recipient or the person responsible
for delivery to the intended recipient, you have received this message in
error.
Please:
(1) reply promptly to that effect, and remove this email, any attachment
and the reply from your system;
(2) do not use, disclose or act on this email in any other way. Thank you.
From: Kainga Ora Correspondence
Kāinga Ora–Homes and Communities
image001.jpg
4K
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signed response OI 24 190.pdf
342K
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Teitei Drive High Level Cost Estimate.pdf
1.1M
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Kia ora,
This was intended to be sent yesterday evening but the email used was
incorrect. Apologies for the delay.
Ngā mihi
The Government Relations Team
[1]www.govt.nz - your guide to finding and using New Zealand government
services
Any opinions expressed in this message are not necessarily those of Kāinga
Ora. This message and any files transmitted with it are confidential, may
be legally privileged, and are solely for the use of the intended
recipient. If you are not the intended recipient or the person responsible
for delivery to the intended recipient, you have received this message in
error.
Please:
(1) reply promptly to that effect, and remove this email, any attachment
and the reply from your system;
(2) do not use, disclose or act on this email in any other way. Thank you.
From: Kainga Ora Correspondence
<[email address]>
Sent: Wednesday, May 8, 2024 10:28 AM
To: [email address]
Subject: response from Kainga Ora (OI 24 190)
Kia ora, please find attached a signed response from Mark Fraser, General
Manager Urban Development and Delivery, to your request of 20 March 2024.
Ngā mihi
The Government Relations Team
[2]www.govt.nz - your guide to finding and using New Zealand government
services
Any opinions expressed in this message are not necessarily those of Kāinga
Ora. This message and any files transmitted with it are confidential, may
be legally privileged, and are solely for the use of the intended
recipient. If you are not the intended recipient or the person responsible
for delivery to the intended recipient, you have received this message in
error.
Please:
(1) reply promptly to that effect, and remove this email, any attachment
and the reply from your system;
(2) do not use, disclose or act on this email in any other way. Thank you.
www.govt.nz - your guide to finding and using New Zealand government
services
Any opinions expressed in this message are not necessarily those of Kāinga
Ora. This message and any files transmitted with it are confidential, may
be legally privileged, and are solely for the use of the intended
recipient. If you are not the intended recipient or the person responsible
for delivery to the intended recipient, you have received this message in
error.
Please:
(1) reply promptly to that effect, and remove this email, any attachment
and the reply from your system;
(2) do not use, disclose or act on this email in any other way. Thank you.
References
Visible links
1. http://www.govt.nz/
2. http://www.govt.nz/
From: Ohakune Ratepayers and Residents' Society Inc
Dear Kainga Ora Correspondence,
========
3./ What changed between the shortfall of $2.3m discovered 1 month (May 2023) after contract signing (April 2023), and the shortfall that ultimately killed the project with letter sent end of feb 2024
KO RESPONSE: What changed between May and April 2023 and the decision not to proceed with the redevelopment, is that Kāinga Ora progressed further through the design and planning phases over this period. The construction cost estimate was further refined, and the estimated land development construction cost increased from the initial estimate.
========
Q 1./ In relation to the above, please provide documentation supporting this statement. O re-enforce that the contract was signed April 2023 and that KO increased the budget a month later (May/June) and KO emailed CIP to update the budget to reflect such. So again, please provide supporting documentation , budgets and refinements and the amounts changed for each part of the project to account for the additional $2.3m budget increase.
========
4./ "The Partners" advertised "Affordable" housing and "Workers Accommodation" throughout campaign, knowing $7.5m or $170,454 (EXCL GST) average per lot and before any cost overruns, please provide supporting documentation to support the claim of being affordable when compared to market available lots (with more land) under this price being available.
KO RESPONSE: ‘Affordable housing’ and ‘workers’ accommodation’ refer to sale or rent of the finished built home to an end purchaser or renter, comparable to properties available on the market at the time. There was no set price.
========
Q2./ KO has previously stated it would not make a loss on the project; based on the numbers I have quoted in my question, would KO have sold LOTS below $170k (market rates) or would they have covered costs, i.,e. selling LOTS above $170k. Please provide a detailed response.
Q3./ Two documents are referenced in the cost estimate, KOHC Concept Drawings 21.9.2022, please confirm these are the ones already released under OIA on your website that were hand drawn, if not please provide a copy. Second document is 200801 Rev 1.18, if this is date related (2008) we have not seen a copy, I also do not recall seeing this titled document, so please send a copy.
Q4./ The report provided in Feb 2023 (2 months before signing the April 2023 agreement with CIP/HUD) shows a total cost of $5.57m. Is Kāinga Ora admitting that at the time of signing the agreement with HUD that the documentation signed was not true (KO signed for the $5.3m with no partner funding required), or did you not fully account for the contingencies when signing the April 2023 agreement?
Q5./ In May 2023 & June 2023, KO discussed in DPM meeting and emailed CIP stating that a $2.3m shortfall would be covered by KO, this was 3 months after the supplied report and 1 month after signing the agreement with HUD. What price increase was discovered for KO to email CIP requesting the budget be increased to $7.5m?
Q6./ The land in the report is shown as $1, was any amount from Q5 allocated to sudden land increase costs and if so how much?
Yours sincerely,
Ohakune Ratepayers and Residents' Society Inc
From: Kainga Ora Correspondence
Kāinga Ora–Homes and Communities
Tēnā koutou
Thank you for your email of 9 May 2024 requesting information on the
proposed development at Teitei Drive, Ohakune, under the Official
Information Act 1982 (the Act). As previously advised, Kainga Ora is
considering your request under the Act and a response was due with you
today.
Regarding your request Kāinga Ora is extending the timeframe for
responding by up to an additional 15 working days to Monday 1 July 2024.
This extension is made in accordance with section 15A(1)(b) of the Act,
‘consultations necessary to make a decision on your request are such that,
under the present circumstances, a proper response cannot reasonably be
made within the original time limit’.
Please note that Kāinga Ora will endeavour to provide you with a response
as soon as possible within this extended timeframe.
Ngā mihi
The Government Relations Team
www.govt.nz - your guide to finding and using New Zealand government
services
Any opinions expressed in this message are not necessarily those of Kāinga
Ora. This message and any files transmitted with it are confidential, may
be legally privileged, and are solely for the use of the intended
recipient. If you are not the intended recipient or the person responsible
for delivery to the intended recipient, you have received this message in
error.
Please:
(1) reply promptly to that effect, and remove this email, any attachment
and the reply from your system;
(2) do not use, disclose or act on this email in any other way. Thank you.
From: Kainga Ora Correspondence
Kāinga Ora–Homes and Communities
image001.jpg
4K
Download
signed response OI 24 289.pdf
430K
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View as HTML
Concept TeiTei Drive for release.pdf
10.7M
Download
View as HTML
Tēnā koutou, please find attached a signed response from Mark Fraser,
General Manager, to your Official Information Act request of 9 May 2024.
The Government Relations Team
www.govt.nz - your guide to finding and using New Zealand government
services
Any opinions expressed in this message are not necessarily those of Kāinga
Ora. This message and any files transmitted with it are confidential, may
be legally privileged, and are solely for the use of the intended
recipient. If you are not the intended recipient or the person responsible
for delivery to the intended recipient, you have received this message in
error.
Please:
(1) reply promptly to that effect, and remove this email, any attachment
and the reply from your system;
(2) do not use, disclose or act on this email in any other way. Thank you.
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