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Housing Foundation business model extraction
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housing-foundation-model.md

Housing Foundation model extraction

Reviewed: 2026-04-29

Source organisation: New Zealand Housing Foundation, a registered New Zealand Charitable Trust (CC23927) and registered Class 1 Social Landlord (RA019).

Executive summary

Housing Foundation is not a land-trust-style perpetual affordability model. Its public model is closer to progressive home ownership through shared equity, with Rent to Own as a readiness pathway and a small open-market sale channel inside new developments.

The central operating loop is:

  1. Acquire or develop new affordable homes through direct development and partnerships.
  2. Place eligible first-home-buying households into either Shared Ownership immediately or Rent to Own first.
  3. In Shared Ownership, the household buys a majority share, usually at least 60%, while Housing Foundation keeps the remaining equity share.
  4. The household progressively buys out Housing Foundation's share until it owns 100% of the home.
  5. Housing Foundation recycles the repaid equity into more homes.

Housing Foundation presents this as a short-term capital support product: the public claim is that one home's funding can support up to seven families over 50 years once the equity share is repeatedly recycled.

Business model

Housing Foundation is best understood as a charitable shared-equity developer and steward.

It does not appear to make housing affordable primarily by selling homes below cost. It makes the household purchase affordable by splitting ownership:

Household buys the bankable share, usually 60%+
Housing Foundation holds the unbankable share, usually up to 40%
Household buys out Housing Foundation over time
Housing Foundation recycles the returned capital into the next home

The model needs four things to work:

  1. Homes delivered at prices target households can partly mortgage. Public project pages show market prices from roughly $685k-$900k depending on location and bedroom count, with the household's 60% share shown separately.
  2. Patient capital for the retained equity share. Housing Foundation has to fund the 40% share until the household buys it out.
  3. Household support and underwriting. The customer is not just buying a house; they are entering a mentored pathway with budgeting, bank introduction, annual reviews, and buy-out planning.
  4. Capital recycling. When households buy out Housing Foundation's stake, the equity is redeployed into more homes.

Revenue and capital inflows visible from public material:

  • Initial sale proceeds from the household-owned share.
  • Programme fees while Housing Foundation remains a co-owner.
  • Rent from Rent to Own homes.
  • Open-market owner-occupier sales in some developments.
  • Capital returned when shared owners buy out Housing Foundation.
  • Government PHO loan funding.
  • Philanthropic and impact investment capital.
  • Donations, grants, sponsorship, and partner contributions.
  • Interest and investment income.
  • Development/project returns, including the Puhinui Park Limited Partnership share of profit visible in FY2025 accounts.

Balance-sheet role:

  • Housing Foundation carries land, work in progress, completed homes, and retained shared-equity positions.
  • Its FY2025 balance sheet shows large land/building and work-in-progress positions, term loans, and substantial trust equity.
  • The model is therefore asset-heavy and capital-cycle-driven, not a lightweight brokerage model.

Commercial implication:

  • A normal company can copy the mechanism if it can deliver homes where the initial share sale covers cost and capital costs.
  • A normal company cannot copy the subsidised capital stack unless it secures equivalent patient or below-market capital.
  • The central commercial hurdle is funding the retained share while waiting years for buy-outs.

What they are solving

Their target market is the "intermediate housing" segment: households that can service a mortgage but are stuck renting because the full deposit and mortgage are out of reach. Housing Foundation's 2025 annual report says New Zealand has around 150,000 people in that position.

Their affordability benchmark is explicit: housing is treated as affordable when it costs no more than 30% of gross household income. Their CEO describes many target households as spending 40-50% of income on rent before entering the programme.

The product is designed around reducing the initial mortgage size rather than permanently removing land value from the market.

Entity and governance model

Housing Foundation operates as a charitable housing trust. It says its mission is to relieve poverty by providing or assisting with affordable housing for low-income people and households in New Zealand.

The operational capabilities are split across:

  • Household managers and customer support.
  • Development and project coordination.
  • Business management and finance.
  • Legal, contract, communications, systems, and organisational support.

The board provides strategic oversight, risk review, investment oversight, and management accountability. The 2025 annual report describes a clear separation between governance and management, with an Audit and Risk Committee.

Product model

1. Shared Ownership / progressive home ownership

This is the core model.

Customer flow:

  1. Household registers and is assessed.
  2. Housing Foundation reviews income, debt, deposit, savings, household size, and affordability.
  3. Housing Foundation helps the household work with partner banks.
  4. The household buys the majority share of the home, usually about 60% or more.
  5. Housing Foundation owns the remaining share, often illustrated as about 40%.
  6. Both parties are recorded on title as owners.
  7. The household buys additional shares over time.
  8. Once Housing Foundation is fully bought out, the household owns 100%.

Publicly stated terms:

  • Initial household share is usually around 60%, or more if affordable.
  • Housing Foundation does not charge rent or interest on its retained share.
  • There is an annual management fee. The FAQ currently states $1,035 including GST per year, roughly $19.90 per week, while the household remains a shared owner.
  • Additional shares can be bought any time the household can afford them.
  • Average time to 100% ownership is stated as 5-7 years in the FAQ. The 2025 annual report says the recent two-year average was 6.6 years and the average since inception was 4.31 years.
  • Annual reviews check income, expenses, debt, savings, and surplus, with the goal of staying on track to full ownership within 15 years.

Sale / exit:

  • The household can sell, but must first offer the home back to Housing Foundation.
  • If Housing Foundation does not buy it, the household can sell on the open market.
  • The site does not publicly provide the detailed equity accounting formula for resale or buy-out price, beyond references to market valuation and progressive buy-outs.

Eligibility:

  • New Zealand citizen or permanent resident.
  • First-home buyer.
  • Main income earner in full-time employment.
  • Gross household income no more than $120,000 per year on the current shared ownership page.
  • Manageable or no debt.
  • A deposit, using savings, KiwiSaver, gifted funds, and/or koha.

Banking:

  • Housing Foundation works through partner banks rather than general mortgage advisers.
  • Current public bank list: ASB, Westpac, Kiwibank, SBS, and BNZ.

Practical product effect:

  • The household only needs a mortgage and deposit for its share, not the whole market value.
  • Housing Foundation's retained share behaves like patient, non-interest-bearing equity.
  • The charity recovers that equity later when the household staircases to full ownership or sells.

Example public project pricing:

  • Molesworth Place, Mangere West: 2-bedroom homes from $720k market price; 60% shared ownership share from $432k; estimated weekly mortgage about $600.
  • Molesworth Place, Mangere West: 3-bedroom homes from $800k market price; 60% share from $480k; estimated weekly mortgage about $670.
  • Puhinui Park, Manukau: 3-bedroom homes from $785k market price; 60% share from $471k; estimated weekly mortgage about $535 at 5% over 30 years.
  • Puhinui Park, Manukau: 4-bedroom homes from $850k market price; 60% share from $510k; estimated weekly mortgage about $579 at 5% over 30 years.

2. Rent to Own / HomeSaver

Rent to Own is a feeder product for households that are not ready for Shared Ownership because they need to reduce debt or build a deposit.

Customer flow:

  1. Household applies through the Shared Ownership registration path.
  2. Housing Foundation assesses whether the household can move straight into Shared Ownership.
  3. If not ready, Housing Foundation may offer Rent to Own.
  4. Household enters a five-year tenancy agreement.
  5. Rent is set at 30% of gross income and capped at market rent.
  6. During the tenancy, the household pays down debt, saves, and receives support.
  7. At the end of the five-year term, the household has the right to buy the home outright or through Shared Ownership.

Publicly stated terms:

  • Five-year tenancy.
  • Rent based on 30% of gross income, never more than market rent.
  • Minimum savings requirement is currently $10,000.
  • The household receives 25% of the increase in property value during the five-year rental period as a deposit contribution.

Example from the site:

  • Initial property value: $650,000.
  • Value after five years: $850,000.
  • Increase: $200,000.
  • Household deposit credit: 25% of increase = $50,000.

Eligibility:

  • New Zealand citizen or permanent resident.
  • First-home buyer.
  • Main income earner in full-time employment.
  • Gross household income no more than $120,000 per year.
  • Manageable or no debt.
  • Savings of at least $10,000.

Important constraint:

  • Rent to Own is not available in every development. The Omokoroa page says Rent to Own is not offered there, though it may be available in future Bay of Plenty developments.

3. Open market sale

Housing Foundation also sells a small number of homes on the open market.

Publicly stated terms:

  • Open market homes are built to the same standard as shared ownership homes.
  • They do not have the first-home-buyer eligibility criteria.
  • Buyers must be owner-occupiers, not investors.
  • The FAQ says investors cannot buy Housing Foundation homes.

Role in the model:

  • The site presents open-market sales as a limited channel.
  • A 2025 Omokoroa article says the 100-home development had 70 homes available through the shared ownership programme and 30 sold on the open market to help fund the scheme.
  • This implies open-market sales are used as a cross-subsidy and capital-recovery lever, although the precise internal allocation is not published.

Capital and funding model

Housing Foundation says it is funded through a combination of Government and philanthropic investment. It also seeks impact investment loans, sponsorship, donations, and grants.

Public sources of capital and support:

  • Government funding, including Progressive Home Ownership Fund participation.
  • Philanthropic support, including The Tindall Foundation.
  • Impact investment loans.
  • Donations and grants.
  • Partnerships with iwi, councils, Crown agencies, community housing providers, developers, banks, and funders.
  • Open-market sales in some developments.
  • Recycled equity from household buy-outs.

Capital recycling is the key financial principle. Housing Foundation retains an equity share temporarily, then redeploys the returned capital when a household buys out that share. The 2025 annual report says every investment is recycled through multiple families and that one home's funding can support up to seven families over 50 years.

The public model therefore depends on:

  • Sufficient upfront capital to hold the retained equity share.
  • Households being able to buy out that retained share within a manageable time.
  • Continued access to partner-bank lending for household shares.
  • A development pipeline that can absorb recycled capital.
  • Funders accepting a patient capital cycle rather than immediate repayment.

Programmes and advantages they use

This section separates programmes Housing Foundation is confirmed to use from programmes it is merely eligible for or indirectly benefits from.

1. Progressive Home Ownership Fund

Confirmed.

Housing Foundation is an approved provider under the Government's Progressive Home Ownership (PHO) Fund. Its FAQ states it is a PHO provider and uses the funds to build more homes. HUD lists "New Zealand Housing Foundation (HF3 PHO Ltd)" as a provider using Shared Ownership and Rent to Buy, with 223 contracted homes and 126 settled homes as at 31 March 2026.

The PHO Fund matters because it offered approved providers government funding via an interest-free loan. HUD's provider-pathway page describes this as a 15-year interest-free loan; HUD's 2026 PHO page says the $400m fund offered approved providers funding via an interest-free loan and that the fund closed to new applications on 30 June 2024.

Practical effect:

  • Funds the provider's retained equity share in shared ownership.
  • Reduces or removes interest cost on the capital sitting in the 40% retained share.
  • Allows Housing Foundation to offer households no rent and no interest on its share.
  • Gives banks and households a government-backed programme context.

Commercial copyability:

  • The historic PHO fund is closed to new applications, so a new company cannot assume access to it.
  • HUD material says the provider pathway was for private organisations with housing experience, so the legal form was not necessarily limited to charities while it was open.
  • If a replacement programme appears, the gating issue will be approved-provider status, housing delivery experience, capital adequacy, governance, and alignment with priority households.

2. Registered charity status and charitable tax settings

Confirmed charitable status; specific tax treatment should be verified with tax advice before relying on it.

Housing Foundation publicly identifies as a registered New Zealand Charitable Trust, registration CC23927. Charities Services guidance says Inland Revenue administers charitable income tax exemptions and donee status; it also says registered charities generally receive donee status where they receive donations/koha, unless overseas-purpose rules change the analysis. IRD guidance says registered charities are generally exempt from income tax, and business income can be exempt when used for New Zealand charitable purposes and not diverted for private benefit.

Practical effect:

  • Makes donations and philanthropic grants more realistic.
  • May allow income tax exemption on qualifying charitable and business income.
  • Helps attract impact capital because surplus is locked to purpose rather than private distribution.
  • Makes long-duration, low-return capital more credible to funders.

Commercial copyability:

  • A normal company cannot use charitable income tax exemptions if profits can be distributed privately.
  • A company owned 100% by a registered charity may be able to access charitable business-income settings if structured correctly, but that is a charity-led structure rather than an ordinary developer structure.
  • A for-profit company can still run shared ownership, but must price income tax, investor return, and capital cost into the model.

3. Donee status / donation tax benefits

Likely, but not independently confirmed on the IRD donee list in this extraction.

Charities Services states registered charities receiving donations/koha generally receive donee status, and that donee status lets individuals claim donation tax credits while companies and Maori authorities can claim deductions for donations.

Practical effect:

  • Makes donations cheaper for donors after tax.
  • Improves appeal to philanthropic supporters.
  • Supports sponsorship/grant fundraising that an ordinary company would struggle to access.

Commercial copyability:

  • Not available to a normal for-profit company.

4. CHRA Class 1 Social Landlord registration

Confirmed registration; direct subsidy use not proven from the public material reviewed.

Housing Foundation identifies as a registered Class 1 Social Landlord with the Community Housing Regulatory Authority (CHRA), provider number RA019. CHRA says registered community housing providers are eligible to enter Income-Related Rent Subsidy (IRRS) contracts with HUD, but registration does not guarantee IRRS funding.

Practical effect:

  • Provides regulatory credibility and monitoring.
  • Can qualify a provider to contract for public housing subsidy, subject to HUD discretion.
  • Helps signal governance, financial viability, and housing-service competence to public partners.

Commercial copyability:

  • A company can potentially become a registered community housing provider if it has the right objects, governance, plans, and long-term housing strategy.
  • Registration is most relevant to social or affordable rental housing. Housing Foundation's shared ownership model is not the same as receiving IRRS for a public-housing tenancy.
  • Do not assume IRRS is part of the shared-ownership economics unless a specific project contract proves it.

5. Government, council, iwi, and CHP partnerships

Confirmed.

Housing Foundation's 2025 annual report lists partnerships with Te Tumu Kainga, Auckland Council / Eke Panuku, Kainga Ora, HUD, Te Runanga o Ngai Tahu, Western Bay of Plenty District Council, Community Housing Aotearoa, CORT, iwi, councils, community housing providers, banks, contractors, funders, charities services, and researchers.

Named development partnerships include:

  • Kainga Ora: over 140 homes for affordable home ownership in Mangere.
  • Puhinui Park Limited Partnership: with Te Tumu Kainga and CORT to build more than 160 affordable homes in Manukau.
  • Omokoroa / Waipapa Green: 100-home development in Western Bay of Plenty.

Practical effect:

  • Access to land, pipeline, planning relationships, and delivery partners.
  • Ability to participate in structured limited partnerships and community housing developments.
  • Credibility with councils and Crown agencies.
  • Potential project economics that may not be visible from end-buyer prices alone.

Commercial copyability:

  • Possible for a company, but harder without mission lock, public-purpose governance, or a charity/CHP partner.
  • A company could partner with an existing CHP or charity rather than trying to become the public-good entity itself.

6. Partner-bank channel

Confirmed.

Housing Foundation states it works with ASB, SBS, BNZ, Westpac, and Kiwibank. The FAQ says applicants cannot simply use a mortgage adviser; Housing Foundation introduces households to banks that have accepted its shared ownership programme.

Practical effect:

  • Shared ownership only works if banks accept the title, security, priority, and buy-out structure.
  • Bank acceptance reduces friction for households and makes the 60% share financeable.
  • Housing Foundation's programme history likely reduces bank-policy risk.

Commercial copyability:

  • This is a major gating item for a company.
  • A developer would need bank-approved template documents and clear treatment of default, sale, buy-out, valuation, insurance, and priority.

7. KiwiSaver and household first-home supports

Confirmed as household-side support, not Housing Foundation funding.

Housing Foundation tells households they can use KiwiSaver, savings, gifted funds, and koha for the deposit. Their resources page points applicants toward KiwiSaver and bank mortgage calculators. It also mentions Welcome Home Loans as an alternative for households with a 10% deposit, but not as a Housing Foundation funding source.

Practical effect:

  • Helps the buyer assemble the initial deposit.
  • Makes the 60% share financeable for households that could not buy 100%.

Commercial copyability:

  • Available to eligible first-home buyers regardless of whether the seller is Housing Foundation.
  • The seller still needs a bankable shared-ownership structure if selling only a partial share.

8. Impact investment loans, grants, donations, and sponsorship

Confirmed as channels they seek; exact current facilities are not fully public.

Housing Foundation's partnerships page invites funders through impact investment loans, sponsorship, donations, and grants. The 2025 annual report thanks funders and names The Tindall Foundation as an enduring supporter.

Practical effect:

  • Supplies patient or concessionary capital.
  • Can fund the retained equity share, predevelopment work, operating support, or project gaps.
  • Reduces dependency on market-rate developer equity.

Commercial copyability:

  • A purpose-locked charity is a better fit for this capital than an ordinary company.
  • A company may be able to raise impact investment, but investors will expect either a return, strong impact covenants, or both.

9. Open-market sale cross-subsidy

Confirmed as a product channel; exact internal allocation varies by development and is not fully public.

Housing Foundation says it sells a small number of homes on the open market to owner-occupiers. The Omokoroa article states the 100-home development had 70 shared-ownership homes and 30 open-market homes to help fund the scheme.

Practical effect:

  • Generates unsubsidised sale proceeds inside mixed developments.
  • Can help cover overhead, infrastructure, development margin, or shared-equity capital requirements.
  • Keeps investor buyers out while still allowing market-price owner-occupier sales.

Commercial copyability:

  • Highly copyable: a company can mix market-sale and shared-equity homes.
  • The hard part is still financing the retained shared-equity stake and getting banks to accept the ownership structure.

10. Lower-cost community-housing finance

Possible sector advantage; not confirmed for Housing Foundation from the reviewed public material.

Community-housing finance channels such as Community Housing Funding Agency / Community Finance exist to connect capital with affordable and community housing providers, with Crown support and lower borrowing-cost goals. Housing Foundation's annual report shows term loans, but the public extract reviewed does not identify lenders or confirm use of these channels.

Practical effect if used:

  • Lower borrowing cost than ordinary development finance.
  • Longer-tenor debt aligned to affordable housing assets.

Commercial copyability:

  • Likely easier for CHPs, charities, iwi, or mission-locked entities than for ordinary developers.
  • Treat this as a diligence item, not a confirmed Housing Foundation input.

Advantage stack versus a normal company

The business model is mechanically simple but institutionally hard to copy.

What a company can copy:

  • Build homes.
  • Sell a 60% initial share.
  • Retain a 40% equity share.
  • Charge a management fee.
  • Let households staircase to 100% ownership.
  • Use open-market sales to cross-subsidise shared-equity homes.

What Housing Foundation has that a normal company usually does not:

  • Existing PHO provider status and historic government PHO contracts.
  • Access to interest-free or concessionary public capital for the retained share.
  • Registered charity status and possible charitable tax treatment.
  • Donee/philanthropic fundraising credibility.
  • CHRA Class 1 Social Landlord registration and public-sector credibility.
  • Long-running partner-bank acceptance.
  • Council, Crown, iwi, CHP, and philanthropic partnership network.
  • A mission-locked balance sheet where funders accept capital recycling over private distribution.

For a company-led version, the most important feasibility test is:

initial 60% share proceeds
- delivered cost of the dwelling
- GST, income tax, selling costs, legal costs, and overhead
- finance cost until settlement
>= cash needed to keep building

Then separately:

retained 40% share
must be funded by equity, debt, vendor finance, impact capital, or a partner
until the household buys it out

If delivered cost is truly below the 60% share, the model can work commercially. But Housing Foundation's version is strengthened by subsidised/patient capital and charitable/public-purpose status. A for-profit version needs either much lower build cost, a lower target return, a capital partner that values impact, or a structure where a charity/CHP owns the retained share.

Development and delivery model

Housing Foundation directly develops, project manages, funds, and partners to deliver new homes.

Current and historical development features:

  • Homes are typically new, architecturally designed or partner-built, with emphasis on durable family housing.
  • Homes are often freehold, with residents' associations used for shared common areas rather than body corporate structures on some developments.
  • Developments are selected for access to amenities, schools, transport, and community.
  • Housing Foundation allocates homes based on household size, funding requirements, and what the household can afford.
  • Build-cost escalation after agreements are signed is absorbed by Housing Foundation, according to the FAQ.

Active / recent examples:

  • Waipapa Green, Omokoroa: 3.2ha site, 100 homes over five stages, a mix of 2-, 3-, and 4-bedroom homes. Public article states 70 shared ownership homes and 30 open-market homes.
  • Puhinui Park, Manukau: partnership with Te Tumu Kainga and CORT, more than 160 affordable homes; another current page lists 9 homes under construction.
  • Mangere: work with Kainga Ora to deliver over 140 homes for affordable home ownership.

Operating economics visible from public accounts

The 2025 annual report provides enough to identify the public income streams but not enough to reconstruct per-home project economics.

FY2025 consolidated figures:

  • Property sales: $21.7m.
  • Development costs: $20.4m.
  • Gross profit on property sales: $1.3m.
  • Rent received: $835k.
  • Fees received: $928k.
  • Interest received: $583k.
  • Depreciation recovered: $361k.
  • Capital gain: $3.19m.
  • Grants: $306k.
  • Operating costs: $3.10m.
  • Financial expenses: $217k.
  • Net surplus: $3.33m.
  • Net assets: $119.6m.
  • Land and buildings held for sale: $13.3m.
  • Work in progress: $44.1m.
  • Land and buildings: $69.3m.
  • Term loans payable: $36.0m.

Operational interpretation:

  • The balance sheet is asset-heavy, with large work-in-progress and land/building positions.
  • Property sales are large relative to rent, which fits a development-plus-progressive-ownership model rather than a pure rental landlord model.
  • Fees are meaningful, likely including management/programme fees, but the public accounts do not break this down.
  • Capital gains are material and appear to be part of the annual result, but the public annual report excerpt does not explain the accounting source.
  • Borrowing exists at group level, but the public report does not provide project-by-project debt terms.

Household economics

For the household, the product changes the purchase problem from:

Need deposit and mortgage capacity for 100% of the home

to:

Need deposit and mortgage capacity for the affordable initial share
plus annual programme fee
plus a plan to buy out the retained share

Shared Ownership payment stack:

  • Deposit from savings, KiwiSaver, gifted funds, and/or koha.
  • Bank mortgage on household-owned share.
  • Rates, insurance, legal costs, and other normal owner costs.
  • Annual management fee while Housing Foundation remains a co-owner.
  • Later buy-out payments for additional shares.

Rent to Own payment stack:

  • Rent at 30% of gross income, capped at market rent.
  • Savings plan toward deposit.
  • Debt reduction plan if required.
  • Potential 25% capital-growth credit toward deposit.
  • Transition into Shared Ownership or full purchase at the end of the fixed tenancy.

Risk controls

Eligibility controls:

  • First-home-buyer restriction for supported products.
  • Income cap.
  • Full-time employment requirement for main earner.
  • Debt manageability.
  • Deposit or minimum savings requirement.

Affordability controls:

  • Household-specific financial plan.
  • Partner-bank mortgage assessment.
  • Allocation based on household need and affordability.
  • Annual shared-owner reviews.
  • 30%-of-gross-income rent benchmark in Rent to Own.

Mission controls:

  • Supported homes are only for owner-occupiers.
  • Investors cannot buy.
  • Open-market buyers must live in the home.
  • Shared owners must offer the home back to Housing Foundation before selling openly.

Development controls:

  • Housing Foundation absorbs build-cost increases after agreements are signed.
  • Professional development/project coordination team.
  • Partnerships with councils, iwi, Crown agencies, banks, builders, and community housing organisations.

Impact model

Housing Foundation measures impact around:

  • Movement from insecure renting into secure tenure.
  • Full home ownership achieved through buy-outs.
  • Household financial mentoring.
  • Health, education, and wellbeing improvements.
  • Stronger neighbourhood belonging and stability.
  • Recycled capital helping more families over time.

FY2025 public impact metrics:

  • 1,277 total homes built by Housing Foundation.
  • 64 homes built in FY2025.
  • 286 houses owned by Housing Foundation.
  • 95 third-party houses managed.
  • 22 families supported into progressive home ownership in FY2025.
  • 38 families supported in Rent to Own.
  • 3 families transitioned from Rent to Own to progressive ownership.
  • 63 families bought out Housing Foundation's share.
  • 380 families financially mentored.

What is not public enough to copy directly

The public website and annual report do not fully specify:

  • Exact buy-out pricing formula for additional shares.
  • Whether additional share purchases are priced at original value, current valuation, or another basis.
  • Treatment of capital gain/loss on shared ownership resale.
  • Detailed legal agreement structure.
  • Security ranking between bank and Housing Foundation on title.
  • Whether Housing Foundation uses caveats, second mortgages, shared ownership covenants, or other restrictions.
  • Project-level capital stack: land debt, construction debt, grants, subsidies, equity, and open-market-sale proceeds.
  • Whether grants are attached to specific homes or pooled.
  • Internal underwriting thresholds beyond the public eligibility criteria.
  • Actual default, arrears, hardship, or forced-sale process.

These would need direct programme documents, sale and purchase templates, shared ownership agreements, and financial statements notes before being treated as implementable terms.

Comparison to this repo's CLT model

Similarities:

  • Both use a charity/public-purpose vehicle.
  • Both target affordable ownership pathways for households excluded from full-market purchase.
  • Both rely on patient capital and reinvestment.
  • Both need household underwriting, support, and long-term stewardship.
  • Both can use mixed tenure or mixed sale channels to recycle capital.

Differences:

  • Housing Foundation does not publicly retain land permanently. The supported household is meant to reach 100% ownership.
  • The affordability restriction is not presented as perpetual. It appears to unwind once the household buys out Housing Foundation.
  • There is no public ground-rent mechanism.
  • There is no public resale formula equivalent to a CLT ground lease with capped appreciation.
  • Housing Foundation's retained stake is equity in the home, not a retained land asset with an occupancy-right sale.
  • Their model prioritises household progression to full private ownership over permanent community ownership of land.

Parameters worth modelling

To add a Housing Foundation-style model to this repo, the key parameters would be:

model_type: progressive_home_ownership
initial_household_share: 0.60
foundation_share: 0.40
household_income_cap: 120000
annual_management_fee: 1035
target_buyout_years: 6.6
max_programme_years: 15
rto_term_years: 5
rto_rent_to_income_ratio: 0.30
rto_rent_cap: market_rent
rto_capital_gain_credit: 0.25
open_market_sale_share: 0.30 # observed in Omokoroa article, not universal
supported_sale_share: 0.70 # observed in Omokoroa article, not universal

Core formulas:

initial_household_price = market_value * initial_household_share
foundation_equity_required = market_value * foundation_share
annual_programme_fee = 1035 while foundation_share_remaining > 0
rto_deposit_credit = max(0, end_value - start_value) * 0.25
capital_recycled_on_buyout = value_of_foundation_share_sold_to_household

Unknown formula to resolve before implementation:

value_of_foundation_share_sold_to_household =
  ? original value share
  ? current market value share
  ? indexed value
  ? independently valued amount
  ? agreement-specific formula

Sources

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