Part 3: Alternative Pathway Available for Entities Providing Housing

If you have got to Part 3, obtaining charitable status may not be the most viable option for your entity. As mentioned in Part 2 , an alternative pathway is to apply for an exemption through Inland Revenue whereby income derived from your entity will be exempt from tax.¹⁰

To be eligible, your entity must:

(a) Be either a trust or a company;

(b) Be registered as a community housing provider (for more on that, see our Community Housing guide);

(c) Not be carrying out its activities for any personal gain or profit;

(d) Ensure that all profits made are to be retained by the entity or either distributed or applied to its beneficiaries or clients, other community housing providers that meet this exemption, tax charities, or organisations with are allowed to receive charitable donations; and

(e) Ensure that those who control the entity cannot personally benefit from the entity’s activities.¹¹

However, you must ensure that no more than 15% of your entity’s beneficiaries and clients have income or assets over particular amounts. Provided your beneficiary or client has never owned property before, then they must just satisfy the income limit requirement. Currently, the income limits are:

(a) Income limit for a single person’s income: ≥$85,000

(b) Income limit for a group of people: ≥ $130,000.¹²

The asset limit varies depending on where abouts your beneficiary or client will reside in. Currently, the asset limit ranges from $80,000 – $120,000.¹³

Conclusion

We have helped many groups in this area and have created a free guide for Community Housing providers which is available here.

If you would like assistance in obtaining a tax exemption for your entity, please contact us and we can help you decide which pathway is better suited for your entity.

This article is intended for general informational purposes only and does not constitute legal advice. For advice specific to your situation, please contact a qualified legal professional. Reproduction is permitted with prior approval and credit to the source.

¹⁰Inland Revenue “Community Housing Providers” <www.ird.govt.nz>.
¹¹Income Tax Act 2007, s CW 42B (2).
¹²At s CW 42B (3), Schedule 34 (1).
¹³At s CW 42B (3), Schedule 34 (2).

Part 2: When will an Entity which Provides Housing not be seen as Charitable?

In this first Part of this series here we dealt with when housing can be considered charitable. Now in this Part 2 we are going to consider the opposite scenario and when it applies.

The key hurdle for an entity to overcome in obtaining charitable status is to ensure that its purposes in providing housing meet the definition of a charitable purpose outlined in the Act. The relatively recent case of Queenstown Lakes Community Housing Trust provides guidance for us to consider.

Although each situation will be decided on a case-by-case basis, some situations where an entity may not be seen as having a purpose which is charitable when it comes to providing housing include:

(a) Those who are eligible to partake or receive the entity’s assistance do not fall within the scope of the term “poverty”. For example, an entity may have various schemes or programmes which seek to assist particular people into home ownership. However, these people may not necessarily be considered to be in poverty or necessarily in need of assistance, such as those that make a low to moderate income;

(b) An entity’s services may confer a private benefit on selected individuals, such as assisting them to meet housing costs and eventually into home ownership. Although this appears to be an inevitable outcome of providing assistance to individuals, the courts have emphasised that housing is a basic human need and right, not home ownership.⁸ If your entity’s purposes are more swayed towards assisting individuals into home ownership, it may prevent your entity from obtaining charitable status;

(c) There may be reasonably available and realistic alternatives for those an entity is assisting into housing. This may, for example, include cheaper accommodation in the surrounding regions of the area an entity is providing housing in – so the facts around where this is to be done is important. We have even seen Charities Services become interested in stats around the poverty in a particular area; or

(d) The benefit to the community in providing housing may be too indirect, remote, or nebulous. It may be that in providing housing, an entity’s purpose is to promote urban and rural regeneration, a purpose which has been accepted by the courts as capable of meeting the charitable purpose definition.⁹ However, if an entity’s purpose is to provide housing for individuals which may then lead on to some sort of public benefit (for example, improving the welfare of the community), then such entity may not be granted charitable status. The public benefit an entity seeks to achieve through providing housing must outweigh the private benefit that it naturally confers.

If you believe your entity will not meet the requirements to be a registered charity due to the considerations we have discussed there is still hope. An alternative option is to apply for an exemption through Inland Revenue. See Part 3 for further details on this option.

We have helped many groups in this area and have created a free guide for Community Housing providers which is available here.

This article is intended for general informational purposes only and does not constitute legal advice. For advice specific to your situation, please contact a qualified legal professional. Reproduction is permitted with prior approval and credit to the source.

⁸Re Queenstown Lakes Community Housing Trust [2011] 3 NZLR 502 (HC), at [41].
⁹At [70].

Part 1: When an Entity which Provides Housing will be Charitable

We support many groups looking at providing housing and often answer this common question. In this three-part series, we set out the information you need to know.

An entity may be eligible for registration as a charity and the resulting income tax exemption, provided it obtains that charitable status, although this pathway may not suit all entities.

In this Part 1, we outline when charitable status can be obtained. In Part 2, we explain when entities which provide housing may not be granted charitable status. Part 3 outlines an alternative pathway through Inland Revenue which may better suit some groups.

A Charitable Purpose

When seeking registration on the Charities register, a key question for an entity that’s purpose is to provide housing is whether this purpose qualifies for charitable status. Under the current Charities Act 2005 (the “Act”), an entity will qualify for registration as a charitable entity if it is advancing charitable purposes and provided it is:

(a) a trust which has an amount of income derived by the trustees in trust for charitable purposes; or

(b) a society or institution which is established and maintained exclusively for charitable purposes¹.

A charitable purpose is defined within the Act as a purpose which includes purposes such as:

(a) the relief of poverty; or

(b) advancing education; or

(c) advancing religion; or

(d) any other matter that is beneficial to the community.²

So how poor is poor?

There is currently no set definition for what constitutes “poverty” so it can be unclear what will qualify to reduce it.

This is important for community housing providers because often they are helping those who are poor – but are they poor enough?

The courts have made it clear that they will look into who is eligible to participate in the entity’s programme, what the participants’ needs are, and whether they are capable of meeting such needs.³ This also involves looking at whether there are any alternative options available for participants in that region which may mean they are not considered to be in a state of poverty.⁴

As long as an entity provides housing to those generally considered to be in poverty (for example, those who are homeless) then the entity may qualify for charitable status.

How does this impact a housing provider?

An entity that provides housing may also qualify for charitable status on the basis that what it does is beneficial to the community. For example, an entity’s purpose may be to provide housing in areas of social and economic deprivation in order to promote and regenerate rural and urban areas.⁵ However, according to Charities Services, the benefit to the community must be clearly identifiable; it cannot be “too nebulous and remote, or simply ‘hoped for’”.⁶

Although these are the key aspects which will be considered, Charities Services will also look at various other factors before granting charitable status to an entity that provides housing. This could include any non-charitable purposes of the entity and the entity’s current and future activities.⁷

The requirements stated above appear to make obtaining charitable status for an entity that provides housing very simple. However, there can be situations where it is not so clear if these requirements are met. We discuss such situations in Part 2.

We have helped many groups in this area and have created a free guide for Community Housing providers which is available here.

This article is intended for general informational purposes only and does not constitute legal advice. For advice specific to your situation, please contact a qualified legal professional. Reproduction is permitted with prior approval and credit to the source.

¹Charities Act 2005, s 13 (1).
²At s 5 (1).
³Re Queenstown Lakes Community Housing Trust [2011] 3 NZLR 502 (HC), at [31].
⁴At [41].
⁵At [69] – [70].
⁶Charities Services Registration Decision: Queenstown Lakes Community Housing Trust (QUE51343, 2 November 2015) at [21].
⁷Charities Act 2005, s 5 (3), (4), s 13 (3)(a).

How do you keep safe if you are overseas but buying land in New Zealand?

Two overseas investors, William Mitchell and Marzio Keiling, faced legal consequences for attempting to circumvent the laws around purchasing forestry land in New Zealand.

The pair used a strategy of incorporating New Zealand Companies where the main shareholder was a New Zealand Citizen. This was done so that the Company could purchase land with the pair behind the scenes funding their respective investments. As these were then “New Zealand Companies” with majority shares held by New Zealanders, they did not apply or obtain consent under the Overseas Investment Act (“the Act”) to purchase.

Mitchell, bought eight forestry blocks, totalling 111 hectares, in the Tairāwhiti/Gisborne area in 2011 through his company, Heidi Mitchell Sustainable Ltd (HMSL). Keiling set up AJN Land Ltd (AJN) in 2014 and purchased a 160.6-hectare forestry block near Auckland. Both properties were classified as “sensitive land,” requiring government approval before purchase, which neither obtained prior to purchase.

Land Information New Zealand (LINZ) took the investors to court, seeking penalties and orders to sell the properties. The court ruled that both companies had breached s42 of the Act, (an overseas person giving effect to an overseas investment without consent under the Act), and Mitchell also admitted to liability under s43 of “knowingly or recklessly enter[ing] into a transaction that defeats, evades or circumvents the operation of the Act.” The Court ordered Mitchell and Keiling to pay penalties totalling over $1.6 million and to divest their remaining properties.

The key point of this is to be careful when buying property in New Zealand. If you are interested in your options and would like to discuss further, please contact our team, or read more here.

Please note that this article is not a substitute for legal advice and you should contact your lawyer about your specific situation. Please feel free to contact us by phone 03 348 8480.

Our Partner, Steven Moe had first met Panapa back in 2017 when they were both on a panel about legal structures at the Social Enterprise World Forum held in Ōtautahi Christchurch.

When we first spoke with Panapa Ehau from Hikurangi Enterprises about their social housing plans for their people we knew this would be a special project. Based on the beautiful East Coast of the North Island in Te Tairāwhiti, the heart of the idea was to enable their people to gain access to housing. He says:

“Anything we do or engage in is founded upon high trust relationships and kaupapa. Parry Field is part of our wider network that share a similar vision of doing great work to increase the wellbeing of people and the environment around us. The network are outcomes focused on intergenerational change. The partnerships that evolve are pono (true) and tika (true) in all aspects bringing together knowledge, skills and experience of many for the benefit of all involved”.

We discussed possible legal structures that could be used ranging from companies, incorporated societies or limited partnerships but eventually settled on setting up a charitable trust. The reason for this was the initiative is all about reduction of poverty with an addition of education thrown in as well. A charitable trust is a stable legal vehicle to use for an initiative like this (for more on legal structure options, read our free guide “Charities in New Zealand: A Legal Handbook”).

There was a lot of thought put into what the governance framework would look like and also how this new entity would interrelate with other entities that were already existing. Fortunately there were several other groups who want to see this succeed including the Tindall Foundation and Community Finance who each offered support in different ways.

One challenge which is worth others considering was what name to choose – the original name selected was already used by another entity so another was chosen: “KAENGA HOU TRUST”.

Drafting the Trust Deed, we next spent considerable time to really think about how to express the charitable purposes and how they really summarise what this is about:

Subject to clause 3.1 and without in any way derogating from it, the Trustees may also devote or apply both capital and income of the Trust to further charitable purposes by:

Providing education in the form of courses, seminars and written information for whanau and community housing providers about providing housing for whanau who are disadvantaged or poor and would otherwise not have access to housing;
Providing education and developing wrap around services to support whanau who are disadvantaged to access housing;
Providing support for whanau who are disadvantaged to be able to have access to housing; and
Participating in systematic change initiatives that increase knowledge and pathways for disadvantaged whanau access to housing including advancing education about homelessness and housing issues.

Another feature of the Trust Deed which is worth mentioning is the inclusion of principles (mātāpono) that we often suggest to clients to include. These are not purposes themselves but they help to set the “tone” for the new charity and its focus so it is worth including here:

3.4 In carrying out the Charitable Purposes, the Trustees will be guided by the following principles (Mātāpono):

respecting and implementing the dual heritage of the partners of Te Tiriti o Waitangi (the Treaty of Waitangi);
respecting the cultural diversity of people and communities and encouraging people from all whakapapa and backgrounds;
inspiring and enabling people and communities to reach their full potential and take ownership of their future;
maintaining high standards of professionalism, integrity and ethical conduct; and
enabling positive social change from within, by building capable communities with the belief, the means, and the opportunities to create sustainable positive outcomes for all stakeholders and future generations.

It was a happy day in January when the email came in saying “I am pleased to advise that KAENGA HOU TRUST is now a registered charity.”

A successful registration as a charity has meant the project can continue forward and funding partners have stepped up with significant contributions. Watch this space and lets see what comes next!

There is a big need for more community housing in our country – but how do Community Housing Providers get set up? What is the process to actually become a registered Community Housing Provider? These are the common questions we get about Community Housing Providers, and we will provide answers to the first question in this article, and then set out how to register in a second article.

What is a Community Housing Provider?

A Community Housing Provider (CHP) is defined as an entity who provides housing for the purpose of either community rental housing or affordable rental housing, or both.[1] Tenants of these homes will be those who have registered themselves as in need of a home on the Ministry of Social Development’s Public Housing Register, provided the CHP is registered by the Community Housing Regulatory Authority (CHRA).

There is some good news in that there is flexibility when it comes to the legal form these can take. A CHP can be set up using various structures, such as a company, a charitable company, a trust, or a limited partnership, provided their purpose satisfies this definition.

We can provide you with advice as to what structure best suits your situation. You may also wish to look at our Community Housing – A Legal Guide for more information.

Why would an entity want to become a Community Housing Provider?

One clear benefit of being a CHP is knowing that you are helping those in need by building and providing housing. Rather than investing in a term deposit or other ventures which may be purely focused on return on investments, providing rental housing for those facing difficult situations helps to better the community.

There are other benefits if you are registered as a CHP by the CHRA. Financially this can be beneficial because:

By being a registered CHP, the Ministry of Housing and Urban Development (HUD) provide an Income-Related Rent Subsidy to registered CHPs through reimbursement agreements and tailored agreements.[2] This covers the difference between the amount of rent the tenant is to pay (as determined by the Ministry of Social Development) and the market rent of the property. This ensures that you will not be disadvantaged by providing affordable rental housing to those in need.
A registered CHP may also get an income tax exemption. To do so, they must meet the eligibility criteria (which is discussed below), are a trust or company, and are not carrying out activities that are for profits or personal gain. The registered CHP must also not have more than 15% of its beneficiaries or tenants with an income or total assets that exceed particular amounts. These amounts are specified within Schedule 34 of the Income Tax Act 2007 (ITA). It must be noted that only the income limit will apply to the tenant if they have not owned land before, meaning their asset value can exceed the limits stated in the ITA.

We help many community housing providers and could help you as well – check out our information at our information hub here.

If you would like to discuss further, please contact one of our team on stevenmoe@parryfield.com, judithbullin@parryfield.com or paulowens@parryfield.com at Parry Field Lawyers.

This article is general in nature and is not a substitute for legal advice. You should talk to a lawyer about your specific situation. Reproduction is permitted with prior approval and credit being given back to the source.

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[1] Public and Community Housing Management Act 1992, s 2.

[2] Public and Community Housing Management (Community Housing Provider) Regulations 2014, s 4(1).

There is a big need for more community housing in our country – in our first article here we talked about what Community Housing Providers (CHPs) are. In this article we will talk about how you can register to become a CHP.

How do I become a Community Housing Provider?

Anyone can be a CHP, but the Public and Community Housing Management (Community Housing Provider) Regulations 2014 (the Regulations) sets out the criteria that must be met to become a registered CHP. An entity must first meet the eligibility criteria, which requires an entity to meet the CHP definition mentioned above, its governing body supports the application for the entity becoming registered.

After having reviewed the performance standards, if the Community Housing Regulatory Authority (CHRA) is satisfied on reasonable grounds that the entity has the capacity to meet the performance standards it may be registered.[1] However, an entity cannot be eligible for registration if they are a council-controlled organisation, a local authority, or are subsidiary of these organisations unless they operate at an arm’s length away from them.[2]

The performance standards set out in the Regulations and by the CHRA are relevant for the eligibility criteria.[3] These standards for registration are put in place to ensure that the CHP does have the capacity to become a registered CHP, as well as to ensure the CHP can continue to comply with these standards once registered. The performance standards focus on five key principles, which are:

Governance
Management
Financial viability
Tenancy management
Property and asset management.

One we often provide assistance with is the governance aspect of the performance standards. This is to ensure your entity is governed in the appropriate manner with the correct systems and processes in place.

For more information on the performance standards, please have a look at the CHRA document on the performance standards: https://chra.hud.govt.nz/assets/Uploads/performance-standards-guidelines.pdf

If an entity meets the eligibility criteria, it can then meet with the CHRA and discuss particular matters such as the entity’s circumstances, and it provides a chance for the CHRA to discuss the expectations of a CHP, the entity’s suitability for registration, and any other information they may require. Following the meeting, an entity must complete an application form. This includes providing mandatory supporting information and evidence which demonstrates the entity’s capability to meet the processes and policies required of a CHP as set out in the performance standards.

An application for registration will be reviewed by the CHRA, who aim to make a decision within 60 working days of having received it (provided the application was fully complete). The CHRA will focus on whether the tenants will be housed appropriately, as well as reviewing whether the five performance standards are met by the entity. Throughout the review, the CHRA consider the principles of proportionality, transparency, fairness, and consistency.

If an entity is successful in their application, the CHRA will still provide feedback as to what can be improved to further meet the performance standards. The entity will then be added to the Public Register on the CHRA website and published in the New Zealand Gazette. The Ministry of Housing and Urban Development (HUD) will also be notified that your entity is now registered, meaning the entity and HUD can then proceed to provide community housing to those in need.

We help many community housing providers and could help you as well – check out our information at our information hub here.

This article is general in nature and is not a substitute for legal advice. You should talk to a lawyer about your specific situation. Reproduction is permitted with prior approval and credit being given back to the source.

If you would like to discuss further, please contact one of our team on stevenmoe@parryfield.com, judithbullin@parryfield.com or paulowens@parryfield.com at Parry Field Lawyers.

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[1] The Public and Community Housing Management (Community Housing Provider) Regulations 2014 s 5(a), (c), (d).

[2] The Public and Community Housing Management (Community Housing Provider) Regulations 2014 s 5(b).

[3] The Public and Community Housing Management (Community Housing Provider) Regulations 2014 s 5(d).

Case study of Collaboration: Home and Parry Field Lawyers

Business is about relationships. One that we’ve enjoyed growing is with Home. A building company with a difference, Home specialises in community and affordable housing developments where there is much more than just quality houses being constructed – but an additional focus on creating communities.

Every team from within our firm provides support in some way. This ranges from helping with drafting contracts, purchasing land, arranging financing, structuring, intellectual property and as Home’s vision has grown, even recently helping with the creation of Home Foundation: a charitable trust focussed on ending homelessness.

Those are just some examples of a deep relationship across the core areas where businesses like Home can use our legal support.

Home co-founder Israel Cooper says: “The team at Parry Field are a unique group of legal experts. Their approach to any legal situation is both strategic and relational, recognising that business is fundamentally about preserving relationships as much as possible. It is their character and the values to which they hold themselves that is their best attribute. People you want to have your back in any difficult situation. “

One of the reasons we enjoy supporting Home is that we can play a part through our legal services in addressing a pressing social need in our wonderful country: housing. This sense of purpose and a shared alignment of values has been essential to the relationship growing.

Chair of Partners at Parry Field Kris Morrison adds: “We have loved putting our skills and legal knowledge to use in supporting a for-purpose company like Home. Contributing to their work coincides with the social justice motivations which led many of us to become lawyers in the first place.”

Paul Nanai, the CEO of Home, comments: “The team at Parry Field have provided exceptional service and expert intervention across many facets of our Business. We can say, outcomes and success achieved are because of them. We honour and value the true partnership we have and their heart and approach with resolving issues. For us the journey and ‘how’ we get to a destination is just as important as the result itself. And Parry Field have made the journey a lot better for us”.

Partner Steven Moe remembers talking with co-founder Israel Cooper for his podcast seeds here and says: “The clear focus and vision that Israel shared for Home is inspiring and shines through – it makes me proud that we can be involved in that kaupapa”.

We participated in the creation of a video which tells the story of Home over the last 10 years which can be seen here:

This video emphasises how we started this case study – relationships, and how critical they are to good being done in our world.

While the housing crisis continues it is nice to know Home is working to do their bit to contribute solutions. Supporting them in what they do brings us satisfaction too.

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About Parry Field Lawyers: With 80 staff in four offices (Christchurch City, Riccarton, Hokitika and Rolleston) we have three main teams: Commercial, Property and Disputes. Within each of those areas we offer deep experience in areas like Employment, Family, Charity, Immigration, Estates, Subdivisions, Litigation, Leasing, Business sale and purchases and more. We welcome the chance to discuss how our team might support yours.

There are many business structure options in New Zealand, including companies, partnerships and Trusts, and you want to be sure you are picking the right one. We frequently assist clients who are considering starting a business navigate the different business structure options to find what best suits their needs. The various business structure options each have their own pros and cons. What the best structure is for you will depend on your particular circumstance, desire and purpose.

The simple and easy structure which are well understood, such as a Company or Sole Trader, will work best for most businesses. If you are purpose driven, a Charitable Trust or Incorporated Society may be more appropriate. Increasingly we are also working with clients who want to merge both purpose and profits and for these clients we assist by creating unique dual structure approaches. In this article we have summarised the key points for the most common structures that are used in New Zealand. We are happy to meet and discuss options with you.

Two other critical points before we look at the options:

Get your strategy and purpose right before you decide on a legal entity type to use. Each one has positives and negatives so know what your end goal and the impact you want to see is first – after that look at which will help you get there. They are each just tools for empowering you to have impact.
Second, we are offering legal thoughts on key elements of these structures but there are other considerations too – in particular always ensure you get great accounting and tax input on the financial side of these alternatives.

Now turning to the options:

Company
Who	Owner = Shareholder Manager = DirectorThe owners may also be the manager
Liability	Is a separate legally recognised entity
Laws	The Companies Act 1993 governs companies
Who signs	The Director
If things go wrong	Companies limit liability for the owner*
Key documents	None required. Can choose to adopt a constitution or shareholders agreement
Visibility	Ownership and management is publicly visible on Companies Register
Difficulty to start	Moderate

* There are certain limited circumstances when the owners of the company may be liable. If the owners are also managing the company as directors, they are exposed to certain liability as managers.

Sole Trader
Who	Owned and managed by ‘sole’ owner
Liability	Not separate from entity
Laws	No specific law governs sole traders
Who signs	The owner
If things go wrong	The owner is personally liable
Key documents	None required
Visibility	Private and not registered
Difficulty to start	Easy

Partnerships
Who	Owner = the Partners Manager = the Partners manage
Liability	Not separate from entity
Laws	Partnership Law Act 2019
Who signs	Partners
If things go wrong	Owners are personally and jointly liable
Key documents	None required Can choose to have a Partnership Agreement
Visibility	Private and not registered
Difficulty to start	Moderate

* One owner can bind all owners.

Limited Partnership
Who	Owner = Limited Partner Manager = General Partner
Liability	Is a separate legally recognised entity
Laws	Limited Partnership Act 2008
Who signs	The General Partner
If things go wrong	The General Partner Limit liability for the owner**
Key documents	Requires a Limited Partnership Agreement
Visibility	Private for the Limited Partners, public for General Partner
Difficulty to start	High

* Each Limited Partner will account for tax in accordance with its individual tax position.

** If the owner participates in the management of the business, they will be liable.

Unincorporated Joint Venture
Who	Owners = Partners Management determined by the Joint Venture Agreement
Liability	Not separate from entity
Laws	Contract law, but no specific law governs Unincorporated Join Venture
Who signs	Each partner
If things go wrong	Partners separately liable or as decided by the Joint Venture Agreement*
Key documents	None required Can choose to have a Joint Venture Agreement
Visibility	Private and not registered
Difficulty to start	High

* Owner will account for tax in accordance with its individual tax position.

Trading Trust
Who	Owner = settlor/donor gives assets (trust fund) to the Trading Trust on trust for the benefit of the beneficiary Management = the Trustee Company, manages the trust fund and pass on benefits to the beneficiary
Liability	Not separate from entity, creates an equitable relationship
Laws	Trusts Act 2019 and Companies Act 1993
Who signs	The Trustee Company
If things go wrong	The Trustee Company
Key documents	Trust Deed
Visibility	Private and not registered
Difficulty to start	High

Charitable Trust
Who	Owners = settlor/donor gives property (trust fund) to the Charitable Trust to benefit the community through charitable purposes Management = Trustees manage the trust fund to advance the charitable purposes
Liability	Is a separate legally recognised entity
Laws	Trusts Act 2019 and Charitable Trust Act 1957
Who signs	The Trustees
If things go wrong	The Trustees
Key documents	Trust Deed
Visibility	Registered on Charitable Trust Register and if a registered charity on Charities Services
Difficulty to start	Moderate

Incorporated Society
Who	Management = the Committee manages the funds to advance the purpose
Liability	Is a separate legally recognised entity
Laws	Incorporated Society Act 2022*
Who signs	The Committee, but this depends on the Constitution
If things go wrong	The Committee
Key documents	Constitution
Visibility	Registered on Incorporated Societies Register and if a registered charity on Charities Services
Difficulty to start	Moderate

* This is a new Act which has recently come into force, for more information on the new Act and requirements see our Incorporated Societies Act 2022: Information Hub.

Co-operatives Companies
Who	Owner = Members/shareholders Governance = Directors
Liability	Is a separate legally recognised entity
Laws	Co-operative Companies Act 1996 and Companies Act 1993
Who signs	The Directors
If things go wrong	Companies limit liability for the owners
Key documents	Constitution
Visibility	Registered on Companies
Difficulty to start	Moderate

For lots more information on co-operatives visit Cooperative Business New Zealand – https://nz.coop/

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If you have any further queries please do not hesitate to contact one of our experts at Parry Field Lawyers- stevenmoe@parryfield.com, yangsu@parryfield.com, sophietremewan@parryfield.com, michaelbelay@parryfield.com or annemariemora@parryfield.com

This article is general in nature and is not a substitute for legal advice. You should talk to a lawyer about your specific situation. Reproduction is permitted with prior approval and credit being given back to the source.

Part 3: Alternative Pathway Available for Entities Providing Housing

Conclusion

Part 2: When will an Entity which Provides Housing not be seen as Charitable?

Part 1: When an Entity which Provides Housing will be Charitable

A Charitable Purpose

So how poor is poor?

How does this impact a housing provider?

How do you keep safe if you are overseas but buying land in New Zealand?

Case study of Collaboration: Home and Parry Field Lawyers

Christchurch CBD

Christchurch – Riccarton

Rolleston

Hokitika

Auckland