High Court upholds decision of the Charities Commission to deregister Housing Trust

Responding to the Wellington High Court decision on Friday, the chair of the Queenstown Lakes
Community Housing Trust has expressed disappointment at the decision and the impact it will have
on the many community housing organisations across the country.

“Government was very involved in the creation of our Trust” said Cole. “Our Trust Deed was
approved by Housing New Zealand, before it was registered as a charity by the Commission. And our
programmes were further endorsed with a Crown grant of $2m back in 2008.”

“Even the eligibility criteria of who qualifies for support was enshrined in a policy between the
Council and the Crown agency before the Trust was created.

“It therefore seems bizarre with this background of Crown support that the Charities Commission, as
a Crown agency, has been so intent on pursuing deregistration.”

Crown agencies sending mixed messages

“Reading the Charities Commission’s Statement of Intent, it says that the Commission must at all
times ‘make its decisions having regard for government policy’. Why then are the different arms of
government moving in such contrary motion?” Cole asks.

New Zealand - out of step with other countries

“Looking across the housing sector in New Zealand we are lagging behind the policies in many other
countries. Our home ownership rates are in long term decline, our building consents are sharply
down and our affordability measures show a severe problem against all international measures.”

“Charitable status is safeguarded in other countries and is often accompanied by additional
incentives.”

Cole says – “Our sister organisation at Whistler, the Whistler Housing Authority is not only income
tax exempt, it is also able to claim back its gst.”

“It is difficult to comprehend a contemporary Crown agency making decisions for the 21st
century when those eligible for assistance are enshrined in arcane definitions. Will we ever help those in
genuine need in our communities while the law governing the Commission draws on definitions
from the 17th century as its benchmark.”

An inevitable contagion

According to Cole, “the risk is now a domino effect across other housing trusts that are all trying to
make a difference in their communities. While Trevor Garrett is on record saying the Commission
does not target sectors, Queenstown’s deregistration followed a rejection of the Jacks Point housing
trust.” “Indeed” says Cole, “we would expect a government agency to be consistent in its dealings
with similar organisations. There are many successful housing organisations around the country and
I don’t see how any of them is now safe.”

An imperative for government to act

“Now the Court has placed housing organisations outside the Charities umbrella, the rug has been
pulled from those voluntary and philanthropic organisations providing local housing solutions in
their communities. If the Charities Act cannot recognise the important contribution of nfp housing
providers to their communities, government must quickly respond with specific legislation that
does.”