Minister of Housing Phil Heatley will be asking the newly-formed Social Housing Unit to look at the issue surrounding the Queenstown Lakes Community Housing Trust's deregistration by the Charities Commission, but warned it would "not be an easy one to untangle".
On Wednesday, trust chairman David Cole announced trustees had resolved not to appeal a High Court decision to uphold the Charities Commission's stance.
Labour housing spokeswoman Moana Mackey said the decision left the community housing sector liable for "millions of dollars in tax", which would "cripple" the sector.
Mr Heatley told the Otago Daily Times he too was concerned about the impact the court decision would have.
"This is a complex issue.
"Not only is the Charities Commission an independent Crown Entity and ministers cannot interfere with its operational decisions, but this issue also spans portfolios, with the Charities Act 2005 falling under the responsibility of the Minister for the Community and Voluntary Sector and the issue of tax exemption being the responsibility of the Minister of Revenue.
"Like the Queenstown Trust, I am concerned about the impact this recent court decision may have on the sector.
"I will be asking the new Social Housing Unit to look at the issue as part of their work around provider accreditation and obstacles to community housing sector growth." The trust was established in 2006 to manage and deliver affordable housing. Last August the Charities Commission said it would be deregistered from September because it did not meet the commission's guidelines, meaning it would lose taxation and gift duty benefits.
In October, however, the High Court at Wellington gave it a reprieve until the hearing.
The High Court found in favour of the Charities Commission last month, with the deregistration now in effect.
Yesterday, Mr Cole told the ODT he was "cautiously optimistic" about Mr Heatley's stance, "bearing in mind the minister has been aware of this issue since we received the notice of deregistration".
