Phil Heatley

Wellington, July 1 NZPA - Four new homes for people who don't earn much money will be built by Habitat for Humanity, with the Government chipping in $440,000.

The money, Housing Minister Phil Heatley said, is from the Housing Innovation Fund.

The projects would cost a total of about $1 million and would see three houses built in Porirua, near Wellington and one in Kaiapoi, near Christchurch.

"Habitat for Humanity's projects will contribute to affordable home ownership for families who are likely to be low to moderate income earners and existing Housing New Zealand tenants," Mr Heatley said.

"There is considerable demand for affordable home ownership options, and the Government is pleased to partner with Habitat for Humanity to provide a strategic approach to supporting home ownership."

The Housing Innovation Fund for 2009/2010 supported 18 projects that would result in 172 houses for families and individuals in need.

The fund was set up to foster collaboration between government and community organisations in order to provide more housing for New Zealanders on low incomes or with special housing needs.

Budget 2010 provided $20m to extend the fund for another year.