'Extremely frustrated' Government struggles to find buyer for Napier flats sitting empty for year

Housing Minister Chris Bishop is extremely frustrated that a government-owned block of 30 flats in Napier has been sitting empty for a year, and he's told officials to do something about it.

Meanwhile, there are more than 450 households on Napier's social housing waitlist, frontline organisations are reporting growing numbers of rough sleepers and the government's giving support services extra money to help them.

The new building on Wellesley Road was bought from a private developer under the former Labour government.

The Ministry for Cities, Environment, Regions and Transport (MCERT) - which the former housing ministry has been folded in to - was trying to sell it to a community housing provider, but had been unsuccessful so far.

"I am as annoyed about this as locals are," Bishop said.

"I am extremely frustrated that many months later the units remain unoccupied while there is real housing need in the area."

Officials were working on a solution, he said.

"I have made my expectations extremely clear."

MCERT said the former Labour government bought the site through a scheme it established to progress affordable developments that may not have proceeded due to market conditions.

It was always intended to be social housing, and the purchase was settled in July last year.

MCERT said it was negotiating with several parties over the sale, and it could not share details until agreements were finalised.

A previous arrangement "did not proceed as expected", it said.

RNZ asked why Kāinga Ora could not take over and tenant the property.

MCERT said the state housing agency was focused on renewing and maintaining its existing stock.

The government is limiting further Kāinga Ora development to ensure the agency's financial sustainability, meaning the number of Kāinga Ora properties is not expected to grow from this year.

It instead wanted to rely on community housing providers to supply desperately needed social homes.