Napier council to keep housing portfolio

Cr Maxine Boag, who is also with Napier and District Grey Power, pictured earlier this year at the council-owned Henry Charles Flats, off Riverbend Rd, Onekawa. Photo / NZME

Napier City Council will retain its housing portfolio following a unanimous decision at the end of a hearing and meeting which spanned almost 10 hours on Wednesday.

It followed public consultation after the council revealed last year one option was to sell the portfolio of 377 units across 12 locations through the city, all but 40 of the homes being for pensioner housing.

With the ageing of the buildings it has been reported to have been a $2.2 million liability, but after receiving 291 submissions in public consultation and listening to some of the submitters today, most supporting retention, councillors made their decision proud to be putting people before money.

It could lead to an eventual 2 per cent increase in rates across the city, subject to annual and long-term consultation and also leaving opportunities for the Council to consider the more viable running of the portfolio in the future.

Funding the deficit would be from loans until the rates increase has been consulted on and implemented.

On the motion of Mayor Kirsten Wise, seconded by Cr Greg Mawson the Council decided to retain all of the existing portfolio, which includes the Arthur Richards Retirement Village and such sites as Wellesley Place near the CBD.

The resolution passed at a meeting which started at 10am and ended at 5.43pm, proposes implementing a 80-20 public/private benefit approach and a sustainable cost-recovery rent-setting policy.

It directs Council officers to investigate further property and tenancy management operating models, and develop a housing strategy.

The Council will, however, continue to lobby Government for access to the income-related rent subsidy, without which the Council had had to reconsider its position on provision of the housing.

The councillors rejected a proposal put by one development consortium for the Council to retain ownership of the property but lease-out the housing.

Councillors believe that after four years of uncertainty and stress, tenants will be able to look the future with some certainty about the availability of the homes.

Cr Maxine Boag said that anything but retaining the portfolio risked losing control of what was needed, highlighting that of 801 people on the emergency housing list in Napier 43 per cent sought single-bedroom accommodation.

Cr Nigel Simpson said he felt like the councillors were taking a "courageous step" when some other Councils were "walking-away" from providing social housing for their communities.