A Tauranga social housing trust has bought 79 pensioner flats owned by the Whakatane District Council for $2.5 million.
The purchase represents a four-fold increase in the number of housing units owned by Tawanui Community Housing - formerly the Tauranga Community Housing Trust.
Trust manager Chris Johnstone said the purchasehad been conditional on the units remaining community-owned and continuing to be rented to older people.
Whakatane's Mayor Tony Bonne said Government policy meant councils did not have access to social housing grants and subsidies. Neither did their tenants have access to income-related subsidies.
"Community housing providers do have that access. By transferring ownership to the trust we can ensure that our pensioner units will be well-maintained and developed to meet future needs."
Tauranga City Council owns 246 units in nine villages. Mayor Stuart Crosby said he had no doubt that next year the council would start "a conversation" about the future of its pensioner villages, on the basis that other councils were looking to divest their villages to charitable trusts.
"The key issue is that existing residents would be looked after."
He said reviewing ownership of the villages was not a high priority.
The council's priorities were managing growth and deciding the future of its leaking, mouldy civic offices.
Ownership of the villages transfers on October 1.
Tawanui Community Housing Trust
* Owns 14-unit village and five houses in Tauranga * Owns 79 pensioner units in Whakatane * Leases 13-bedroom Kakariki Lodge from Salvation Army in the Avenues * Leases six-bedroom lodge in Tauranga * Oversees or manages accommodation for 60
