Relocatable house park for Edgecumbe homeless

The relocatable houses to be built in the Whakatane Domain Holiday Park. Photo/supplied

A relocatable house park is being built at the Whakatane Domain Holiday park for those made homeless by the flooding in Edgecumbe.

The $1.55 million project would help meet the pressing short- to medium-term accommodation needs of people in the district.

The relocatable houses, which look like cabins, would stay on as accommodation for tourists in the long term.

In a Whakatane District Council meeting described as "extraordinary" it was decided that the south-eastern section of the holiday park would be used and that temporary residents could stay in the units before the four-week limit.

Whakatane District Council and the Ministry of Business, Innovation and Employment were jointly funding the relocatable house park.

Council would contribute $850,000 toward the cost of purchasing and installing 10 self-contained Portacabins for the first stage.

The ministry would add $700,000 for infrastructure and other costs for up to 20 relocatable units.

Mayor Tony Bone said the project was hugely encouraging and the Building and Construction Minister Nick Smith acted "decisively" to ensure flood displaced people would have good quality, temporary housing.

He sad the council's contribution was a loan-fund.

"Taking into account depreciation and debt servicing costs over the next 10 years and the expected offset of rental income, the total financial impact on ratepayers is expected to be less than $35,000," Mr Bonne said.

"That equates to an annual rate increase across the district of just 0.08%, and given the short and long-term benefits this will deliver for our communities, it truly is a 'no-brainer'."

Construction was expected to begin by the end of June, subject to resource and building consent.