Napier City Council is considering selling all of its 377 housing units because it is struggling to meet the costs of maintaining and upgrading them. Resident Fiona Clements is concerned. Video Warren Buckland.
Napier City Council has confirmed its 377 housing units will not go on the open market if it makes the decision to sell them after public consultation.
Public consultation on the fate of the council-owned housing is scheduled for March, when submissions can be made on three proposals.
These includekeeping the units in full council ownership, selling some of them, or selling all of them.
The council is facing a $2.2 million loss related to the properties, based on the existing rental income, if it keeps them.
The flats provide affordable house with a subsidised weekly rent at a cap of 30 per cent of income.
Napier mayor Kirsten Wise said the council's top priority was to protect the current tenants, which led to them ruling out an open-market sale.
"Should we decide that the sale option is what we are going to proceed with, it will absolutely be going to another community housing provider."
She said in the event of a sale, the council could impose conditions which could secure the existing tenants' current tenancy for as long as they desire it or could state that the portfolio must be retained as social and pensioner housing in perpetuity.
She said sale to a community housing provider should also ensure the affordable rent remains for tenants as they have similar rent cost models to the council.
Napier mayor Kirsten Wise wants to reassure the community that no decisions have been made yet, and that the council wants to protect its tenants the best it can. Photo / Paul Taylor
Fiona Clements works as a barber in Napier and has lived in a Napier council-owned unit for about 16 years.
She said it is the only home available to her.
"I don't have a husband, I don't have brothers, I don't have a family here, I don't have children, so if they sell them and if I couldn't be in them, then I walk to the end of the driveway and I've got nowhere to go."
She said many of the other residents, some of who were in their 90s, would be in a similar situation.
She said the council's promises to ensure the protection of tenants in the event of a sale did not fully alleviate her fears.
"Once you sell something, it's normally up to them. We won't know the details until it's sealed and delivered. I'm worried they might get someone to say they will keep them so we think we are safe, but they don't and they bowl them."
She said the uncertainty around the cost to maintain the properties has been something the council has discussed with the residents for about three years, but she didn't know why the accumulated rent hadn't been enough to cover maintenance on mortgage-free homes.
"It's not big stuff. We haven't got broken windows and doors falling off. I feel like the story has been making out like they are derelict and they can't look after them, so they have to sell them. To me that is not the case."
Resident of Napier City Council-owned housing Fiona Clements said she and other residents fear an uncertain future with the possibility of their homes being sold. Photo / Warren Buckland
Wise said the council had been able to track the rent money spending back to 2007 so far and she could confirm that all of it had been spent on the houses from that point at least.
Historically there was a surplus that had been kept in reserve, but that too had been spent in recent years as costs increased.
She said residents with superannuation as their only income would only be paying $130 per week, which would not be enough to cover the costs of the entire house.
She said after an assessment of current costs including maintenance, insurance, support staff and compliance, there would be a $2.2m shortfall for the council per annum if they kept all the properties.
"With the way things are heading with inflation, that gap is only going to get bigger."
"Based on this, we would be looking at about a 4 per cent rates increase just for that alone per annum.
Clements said she believes the cost to ratepayers is a cost worth bearing.
"For me, it's about social consciousness and the wellbeing of the residents. We are grateful to have home, without which we would be homeless in a time when New Zealand is struggling with housing."
