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June, 2011 The High Court has upheld a decision to deregister the Queenstown Lakes Community Housing Trust.The trust, formed in 2007, was formally deregistered in August because the Charities Commission said the organisation did not meet the definition of charitable status. Justice Alan MacKenzie upheld that decision in the Wellington High Court this month, saying the trust did not meet definitions of relief of poverty or benefits to the community under the Charities Act. Justice MacKenzie's decision said those eligible for the Queenstown shared-ownership housing scheme were not poor and renting was an alternative. He said housing was a basic need and right but home ownership was not. "Many people who would fall within the trust's eligibility criteria might take offence at the suggestion they are in poverty. "Queenstown is expensive and, if housing assistance is not provided, people within the trust's eligibility criteria may be unable, or unwilling, to settle. I do not consider that this is sufficient to bring the case within relief of poverty." Trust chair David Cole said he was disappointed 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 Mr Cole said. 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. He said New Zealand was out of step with other countries and lagging behind in its polices. The trusts sister organisation in Whistler, Canada, the Whistler Housing Authority, was not only income tax exempt, but also able to claim back its gst. Mr Cole believed there was now a risk of a domino effect across other housing trusts that were all trying to make a difference in their communities. The trust has helped about 40 families buy or co-own their homes and aimed to build a 22-house development in Lake Hayes estate. Mr Cole said he was doubtful whether the trust would appeal to the Court of Appeal because of the likely cost. Its future was unclear and trustees planned to meet to discuss options, he said. Source: The Southland Times
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