2.Further information on Major Projects in Wellington.pdf

Kāinga Ora Ad Hoc Paper
GSR-24-17462
10 September 2024
Minister of Housing
Associate Minister of Housing (Public Housing)
Cc Board Chair, Simon Moutter
Further information on Out of scope and Dixon
Purpose
You have asked for further information about Wellington Central developments and earthquake standards.
Background
1. The paper “Major projects in Wellington Central” [GSR-24-14522, 26 August 2024] provided an
overview of two major projects in at 134 Dixon Street, Te Aro (Dixon Street Flats) and Out of scope
Out of scope prior to formal y consulting with you on them over the coming months.
2. The note included information about the heritage and earthquake ratings of the Dixon Street Flats Out of scope
Out of scope
3. You asked for further information on:
• What was the prompt to start decanting people out of 134 Dixon St in November 2022, given the
housing demand in the area? Was it the earthquake rating, which I note is above the 34%
• Who did the 2020 DSA, and was it peer reviewed and if so by who? Has thought been given to
getting a new one done?
Out of scope
• Why is Kāinga Ora’s policy to achieve 67% NBS?
under the Official Information Act 1982
• Has KO thought about challenging the heritage nature of it? The briefing seems to accept that it is
“heritage” (in fact it asserts the need to protect it) but is that really true? Has thought been given to
talking to the Council about a plan change to remove the listing?
Out of scope
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Further information
1. What was the prompt to start decanting people out of 134 Dixon St in November 2022, given the
housing demand in the area? Was it the earthquake rating, which I note is above the 34%.
Rehousing of the tenants has happened in stages starting in November 2022. Post the Christchurch
earthquakes, in 2012 the Housing New Zealand (HNZ) Board decided to aim to have al buildings
strengthened to at least 67% of the NBS. Buildings that were 0-19% NBS were to be rehoused within 90
Kāinga Ora – Homes and Communities

Kāinga Ora Ad Hoc Paper
days of a detailed seismic assessment (DSA) report being issued. Buildings that were 20-33% NBS were
either rehoused or strengthened within two years, and buildings that were 34-66% NBS were to be
rehoused or strengthened within ﬁve years. The focus was on getting al  buildings to at least 34% and
this was largely achieved with 160 buildings strengthened and 101 demolished.
Customers were initial y vacated from ground ﬂoor units so intrusive underground testing could be
undertaken to understand the condition of the building. The policy position at the time (which was
adopted by Housing New Zealand and is in the process of being updated) required buildings to be
vacated within ﬁve years of receipt of a Detailed Seismic Assessment. The DSA on Dixon Street was
completed in October 2020 meaning the building needed to be vacated by October 2025. Given the size
of the building and the nature of the customers who were homed there, rehoming of tenants needed to
be undertaken over time to ensure customers could be rehomed appropriately. The units are also not
Healthy Homes compliant and therefore tenants needed to be rehomed prior to 1 July or brought up to
Healthy Homes standards.
2. Who did the 2020 DSA, and was it peer reviewed and if so by who? Has thought been given to getting
a new one done?
The DSA was prepared by Spencer Homes and peer reviewed by WSP New Zealand (a building
consultant). Advice from Spencer Homes is that the 2020 DSA was prepared under current guidelines
and therefore updating the DSA would not result in any changes.
3.  Out of scope
under the Official Information Act 1982
Released
4. Why is Kāinga Ora’s policy to achieve 67% NBS?
The aim of the 2012 HNZ approach to get buildings to at least 67% was to ensure buildings were safer
for our customers and they were more resilient in a strong earthquake.
We have recently reviewed our approach and have drafted a new policy which is going to the
Kāinga Ora Board on the 24 September for consideration. The new policy proposes that Kāinga Ora
complies with the legislative requirements set by the Government around timeframes to remediate
and strengthen earthquake-prone or earthquake-risk buildings. Any rehousing would be considered on
Kāinga Ora – Homes and Communities

Kāinga Ora Ad Hoc Paper
a case-by-case basis based on the level of risk, and would no longer be required for buildings like Dixon
Street that fal  between 34-66% NBS.
The new policy proposes a case-by-case assessment whether to strengthen, and what %NBS standard
to strengthen to, at asset renewal. Things to consider may include how long we plan to retain the
building and the cost to strengthen to 67% or above, i.e. if it is only going to cost a bit more to
strengthen from 67% to 80% and we plan on keeping the building for at least the next 30 years, it may
make sense to strengthen to 80%. However, if it looks prohibitively costly to strengthen to 67% we may
not strengthen the building at all.
5. Has KO thought about chal enging the heritage nature of it? The briefing seems to accept that it is
“heritage” (in fact it asserts the need to protect it) but is that real y true? Has thought been given to
talking to the Council about a plan change to remove the listing?
The heritage significance of the building is well-documented. It is recognised by the building’s category
one status on the New Zealand Heritage List and its inclusion on the Wellington City District Plan
Heritage Schedule. An independent conservation management plan commissioned by Kāinga Ora also
concluded that the building is of exceptional social and architectural significance. The building is one of
only four Kāinga Ora properties with this status.
The significance 134 Dixon Street, our financial resources, and the strengthened provisions in the
Proposed Wellington District Plan mean that there is a significant threshold to overcome for Kāinga Ora
to succeed in obtaining resource consent to demolish [or delist] the building. Even if the Council
granted consent it may be appealed to the Environment Court, and subsequently to higher courts. A
decision to pursue redevelopment would likely lead to a lengthy and costly legal process with an
uncertain outcome, and provoke community/media criticism.
The operating principles in section 12 of the Kāinga Ora – Homes and Communities Act 2019 require
Kāinga Ora to operate in a manner that recognises heritage values.   The Policy for Government
Management of Cultural Heritage Places[1], which took effect in February 2023, requires agencies like
Kāinga Ora to integrate heritage management into asset management processes, ensuring that
heritage assets are protected, maintained, and, where possible, used for the benefit of fu
under the Official Information Act 1982ture
generations.
Given the heritage significance of the building, and the obligations on Kāinga Ora in the Kāinga Ora Act
and the Policy for Government Management of Cultural Heritage Place, Kāinga Ora has not sought to
delist the building.
Released
6.  Out of scope
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Kāinga Ora Ad Hoc Paper
Out of scope
Mark J Rawson
Mark Rawson
Acting Deputy Chief Executive - Central
under the Official Information Act 1982
Released
Kāinga Ora – Homes and Communities