Uncertainty hangs over seniors who rent Hamilton City Council's housing units now a proposal to sell the units has been floated.
As part of a review of its Housing for Older Persons Service, council has decided its preferred option is to sell the properties, offering them first for sale to sympathetic housing providers over six months. Any unsold properties would then be offered for sale on the open market, empty.
A $1.3 million loss is predicted over the next 10 years for the portfolio of 344 units located in 17 communal type complexes spread across the city.
Dozens of those who live in the units attended last Thursday's council meeting.
At the meeting councillor Martin Gallagher said any society is judged by how it treats its children and its elderly.
"Slow down, pause for reflection, the only reason we sit around this table is for the work the older people did for our city. We enjoy a fantastic city because of that work. We now engage in an open door process where anyone who wants to have their say, can do so," said Mr Gallagher.
Council says local authorities have been excluded from central government social housing reforms, meaning they are no longer able to access government capital funding for income-related rent subsidies. Community housing providers such as the Salvation Army are eligible to receive these, however.
Rent for the properties is reviewed each year and is set based on similar properties in New Zealand and specifically within local governments.
Vice president of the now defunct Tenants Action Group Terry McKelvey said his rent in 2012 in Korimako Village in Dinsdale was $82 and has increased each year since. From July 1 this year, it is $118.50.
"The reason they give for increasing the rent is to bring it up to the same level as other city councils. You have to realise the ambience of some of these places is very nice - like Tauranga. You're looking out over the sea and have good facilities."
Council have stated a benefit to selling the properties to a sympathetic housing provider would be for a wrap-around service such as home meals, home help and social services.
"We don't have wrap-around services, we don't need them. You can pick up the phone these days, if you get to that stage you should be in a convalescent home," said Mr McKelvey.
"The average [age] of people here is 80. A lot of them are sick and worried. This has been going on since 2012. They're just beside themselves some of them."
Hamilton Grey Power president Roger Hennebry said if council is looking at the sale for "business" reasons, then it should be Waikato Stadium or Claudelands Events Centre that should be sold off. He said council had increased rents over the past four years to bring them up to a point where they cover the cost to council.
"I think we have a duty of care as a city to look after our older people. I think when you look at the millions we are spending on Claudelands and the stadium, propping up theatres, the museum. For a few thousand to keep the 344 units going, let's cut something else out and keep them going."
The portfolio is valued at $26.3m and Mayor Julie Hardaker said many things have changed since council made a decision three years ago to sell several other properties unsuitable for pensioners.
"I think it is important that when councils come to make decisions they make those based on information. This is putting a proposal out for people to have their say. It does represent a big shift in the delivery of service," said Ms Hardaker.
"The reality is they [social housing services] do it very well. They have access to government resources that we have been shut out of. We need to listen to that. This is a very important issue, it does represent a fundamental shift."
Council will prepare a statement of proposal with their preferred option of sale. Once that has been adopted, it will undertake full public consultation, including hearings. This is expected later this year.