Hawke's Bay emergency housing providers paid nearly $3 million over three months

Associate Housing Minister Kris Faafoi said money spent on emergency housing in Hawke's Bay catered for "vulnerable" New Zealanders. Photo File

Emergency housing accommodation suppliers in Hawke's Bay were paid nearly $3 million in a three-month period that included the Covid-19 lockdown.

The Ministry of Social Development has revealed it spent $2.84m on rooms in motels, hotels and holiday park in the region from March to June 2020, to house more than 500 homeless clients.

The ministry released a full breakdown of providers and payments on Wednesday in response to an Official Information Act request.

The highest earner over the three months - Bluewater Hotel Ltd - received $453,535 and the second-highest earner was Hastings Top 10 Holiday Park earning $273,256.

Napier accommodation provider Rodney Green, who opened the Bluewater Hotel in 1999, said it had been about a need for accommodation and the "accommodation industry needing people".

When Covid "came along" he was approached, trialled 10 people, found it "worked well", and agreed to provide further accommodation.

"We had expected business numbers to drop because no one was travelling anymore, and we had the employment of our staff to look after," he said.

"Most of the people had children, they would go to school, we had very little problems."

MSD housing general manager Karen Hocking said the year 2020 had seen a "significant increase" in demand for emergency housing. The ministry supported people through Covid-19 with accommodation where they could "safely self-isolate".

"Due to the Covid-19 lockdown restrictions, people also could not easily move out of emergency housing into long-term accommodation, contributing to longer durations of stay and higher costs," Hocking said.

"In addition, during alert levels 2-4, the ministry was able to grant Emergency Housing Special Needs Grant for up to 21 days, an increase from the standard seven-day period."

Hastings Top 10 Holiday Park was one of the top five earners as an emergency housing accommodation supplier. Photo / File

The other top earners, all earning more than $100,000 were:

• Ace High Motor Inn: $110 512
• Cherry Grove Motel: $129,300
• Claremonte Motor Lodge: $210,115
• Deco City Motor Lodge: $261,180
• Fairmont Motor Lodge: $232,385
• Harvest Lodge Motel:$101,735
• Quest Napier: $104,095
• Westshore Holiday Park:$126,622.85
• Wairoa Motel: $213,310.

The grants are available to people who cannot remain in their usual place or residence, if any, and do not have access to other accommodation that is adequate for them or their family's needs.

Assistance was generally granted for up to seven nights but could be extended, dependent on individual circumstances, Hocking said.

"The ministry understands that demand for housing across New Zealand is growing and
more people are experiencing a severe and immediate need," she said.

"This demand is generated by a shortage of affordable housing, driving house price and rent growth.

"Some people may struggle to access suitable housing due to a lack of available supply
or they simply may not be able to meet the high cost of housing, which may result in
them receiving EH SNG support for an extended period of time."

Hocking said across the government there was a programme aimed at increasing the supply of public housing and improving housing affordability.

Associate Housing Minister, Kris Faafoi, said the use of motels was a "necessary action" for "vulnerable" New Zealanders.

He said the Government was providing $107.6 million to provide accommodation for "rough sleepers" and to meet other immediate housing needs to reduce the impact of Covid-19.

"In Hawke's Bay, the Ministry of Housing and Urban Development has been working with Whatever It Takes Trust, the local Housing First provider, to support people who have been accommodated as part of the Covid-19 homelessness response, supporting 29 households.

"The Hastings Place-Based work has found that a range of complex and inter-related housing issues in Hastings district are putting pressure on whānau and communities. This work is making good progress in understanding the specific housing challenges for Hasting and tailoring responses for them."