New underwrite supports housing supply as economy recovers
Published 04 Oct 24
Te Tūāpapa Kura Kāinga – Ministry of Housing and Urban Development is supporting the residential construction sector to continue providing housing through the Residential Development Underwrite (RDU).
Read the announcement on the Beehive website(external link)
Residential Development Underwrite
The Residential Development Underwrite (RDU) is a new, time-limited initiative to help the residential construction sector return from the effects of the downturn.
It will help maintain capacity in the sector, help grow housing supply and support developments to be completed for when buyers return to the market.
With the assurance of an underwrite, banks and other lenders can provide finance to developers to build houses.
This means developers with a proven track record can secure finance from lenders for housing developments that are consented, costed and ready to begin. Developments must have more than 30 homes to qualify.
The RDU is expected to support construction activity in the near-term and deliver much needed housing. It is expected that developments in the main centres of Auckland, Hamilton, Tauranga, Wellington and Christchurch will best meet the RDU objectives. However, developments in other locations that meet the criteria may also be considered.
More information is available on the Residential Development Underwrite page