Lee and Denese Konowe have now resettled after last year's Bella Vista Homes evacuation, and the ordeal that followed.
Housing New Zealand has taken an interest in the Bella Vista development - and it isn't the only one sniffing around.
"Anecdotal" interest from potential buyers, including developers, was one reason Tauranga City Council decided to try fixing up and selling the 21 problematic Lakes properties it bought for $14million in November.
Today marks a year since the council evacuated the development and later declared most of the properties dangerous.
On December 18 elected officials met behind closed doors and decided to remediate the sites via a mix of salvage, demolition and repairs.
Work to remove the upper levels of the Lakes Boulevard houses is set to begin next week. Photo / Andrew Warner
The council would not release the report it discussed, however, notes from the meeting provided in response to a Bay of Plenty Times Weekend official information request revealed more about plans for the houses and what motivated the council's decision.
As well as buyer interest, councillors hoped remediation would reduce the development's stigma and recoup more money for ratepayers than selling "as is where is".
The council anticipated the five Aneta Way houses would remain in place with yet-to-be-decided repairs. An independent investigation found the council wrongly issued code compliance certificates to two of those houses.
The upper levels of the 16 Lakes Boulevard houses will begin being removed starting this week.
The council's demolition contractor, Shane Moore Services, sent a letter to neighbours saying the company intended "to move the homes to another location and arrange their sale."
Remediation plans for the 21 Bella Vista properties.
The basement levels will be partially demolished.
The removals will both allow retaining walls to be built on the unretained slopes between the two streets, and free up sections ripe for redevelopment.
A Housing New Zealand spokesman confirmed there had been "informal" conversations with the council about using Bella Vista land for state housing.
"It's still very early days and no decisions have been made, but we'll continue to talk with the council about the site."
Jo Gravit, chairwoman of the Tauranga Community Housing Trust, said the development had "certainly been talked about" among local social housing providers.
She wanted to see the council take a leadership role in determining the future use of the sites.
As the landowner, the council could influence the style and mix of housing typologies and explore a range of innovative partnership and ownership models.
She said the council would need public support to take that bold option but recent research showed housing was a top concern for Tauranga residents.
Tauranga Mayor Greg Brownless says the council's priority must be covering its costs. Photo / George Novak
Mayor Greg Brownless said the council's priority must be recouping as much money as possible for ratepayers.
Insurance did not cover $3.5m of the buyout cost, and the council has not released the budget for the remediation work.
Social housing was the Government's responsibility, not the council's, and he did not believe it should get special treatment.
"They have to pay a fair price, don't expect the ratepayers to subsidise it."
Some Tauranga developers and builders predicted there would be plenty of buyer interest in both the sections and the houses, but the director of one of New Zealand's biggest residential building companies said he wouldn't touch them.
Peter Cooney, director of Classic Group, said: "We just don't want to buy someone else's mess."
Further council involvement with the development did not inspire his confidence.
Classic Group director Peter Cooney says he has no interest in buying in the remediated Bella Vista development. Photo / supplied
Scott Adams of Carrus, land developer of The Lakes, said he was confident that once "tidied up" there would be strong interest in the properties given the area's popularity.
"Buyers will come from all directions."
Mike Bell, owner of Belco Homes, agreed and reckoned he would be one of a "multitude" of building companies "interested in having a look".
"There will always be buyers for them. There is a housing shortage so if the price meets the market there will be no problem."
Neighbours react to social housing speculation
Residents living near the Bella Vista development yesterday had mixed reaction to the news social housing providers were taking an interest in the properties.
Some had no issue with state housing potentially being built on the site, especially if it was well managed and kept to the standards of the subdivision, with good tenants.
Pam Fogarty said it was a great idea, especially if it was part of a mix of housing types.
"If it went for something like that I would be all for it. People have got to live somewhere."
Others were nervous about the idea.
One man said he had such a bad experience living next to a state house elsewhere in Tauranga, he had no faith in Housing New Zealand to manage its tenants.
"It was a shocker. We moved in the end."
One woman said the area had so many problems it was "ridiculous" to build houses there again, and said the council should turn the land into a park.
A Housing New Zealand spokesman reiterated no decision had been made.
Salvage, repair, demolish: The plan so far
Lakes Boulevard, 15 properties - Demolish masonry walls in the basement - Salvage windows and doors - Salvage, remove and re-site upper floor
Aneta Way, 5 properties - Remediation steps being finalised - Anticipated houses will remain in place
Retaining walls - Between the Lakes Boulevard and Aneta Way properties - Removal of Lakes Boulevard houses will enable access to build walls - Wall design still being finalised.
