|DATE OF INVESTMENT||6 May 2022|
|STAGE/TYPE OF INVESTMENT||Existing Homes|
|IMPACT FOCUS||Social Inequality|
Homes for Tamariki (“H4T”) fund has been established in partnership with Oranga Tamariki (“OT”) and New Ground Capital (“NGC”), to assist in housing the most vulnerable children and young adults in the care of OT. These young people have a variety of complex needs and are unable to be placed in the care of extended family or foster care.
OT will identify properties that are well located and suitable for the young people in their care. H4T will undertake the due diligence, acquire the property, and then lease out OT on a long-term lease. Management of the homes will be undertaken by NGC. The homes will be occupied by those most vulnerable children and OT caregivers and help to provide safe and secure homes for the children to flourish and develop to live good lives.
The first homes will begin settling in June 2022.
New Zealand has some of the worst child well-being statistics of the developed nations, coming last in children’s mental well-being and third to last in overall child well-being.
By taking the most vulnerable children out of dangerous and unstable environments, H4T creates a positive impact on inequality in New Zealand, which is a key PCIF challenge area, positively contributes to the government’s child well-being priority, and, more broadly, is in line with the United Nations Sustainable Development Goal to reduce inequality.
In 2019 OT commissioned a report to examine the social effects of moving children from suboptimal housing to safe and secure housing. The report found:
- Truancy declines by 35%
- Suspensions decline by 46%
- Attainment of NCEA level 2+ increases by 49%
- Serious offending declines by 45%
- The need for treatment for substance usage declines by 24%
- The need for treatment for mental health issues declines by 8%
- Emergency Department admissions reduce by 8%
- Hospitalisations decrease by 11%
- Employment for the whole year at age 20 increases by 23%
- Likelihood of being on a benefit reduces
Children tend to stay in accommodation of this nature for their more high-risk / high-need years (generally 13 – 18 years old) and then re-integrate into society. This allows further children to have homes and compound the positive social affect. Also, there are flow on benefits through lessened demand on the country’s healthcare, welfare, and justice systems.
Currently, the majority of this cohort is in emergency housing accommodation, such as motels. Moving these children and these careers to safe and secure housing is something we feel all New Zealanders will be proud of.
In May 2022, the Purpose Capital Impact Fund became the first investor in H4T. The first homes will begin settling in June 2022. H4T remains open for further investment.
Over the next twelve months, OT & H4T are proposing to acquire 30 homes between Northland and Otago. They are expecting to require more than 100 such homes over the next three years.