A small group of pensioners are concerned about their future if Napier City Council sell their flats. They protested outside council buildings. Video Warren Buckland.
The Napier Housing Coalition is protesting the possible sale of Napier's council owned housing as a final decision on their future looms next week.
Councillors will consider 286 submissions on the future of Napier City Council's 377 community housing units, including several oral ones at a meeting on Wednesday, May18.
Three proposals put forward by the council include selling all units, keeping all units or keeping most of the units and selling some.
The council estimated a $2.2 million annual shortfall if the status quo is maintained.
Under the plan to keep most of the housing, the council would retain its eight 'retirement' villages, develop 45 more units and sell three 'social villages' leading to a $2.3m annual shortfall.
The Napier Housing Coalition planned three gatherings from 11am on Marine Parade next to Vautier St on Thursday, Friday and Saturday to protest the possible sale of the Napier City council-owned community housing.
Napier Housing Coalition advocate Dawn Bedingfield said the group fears the housing will be sold to Kāinga Ora for far below its capital value like in Tauranga.
"They probably want to sell to Kāinga Ora for half price, because that's what other councils have been doing," she said.
Tauranga City Council sold seven elder housing villages to Kāinga Ora for $17.2m, revealed to be nearly $25m less than their capital valuation of $41.65m as of July last year.
Tauranga City Council commission chairwoman Anne Tolley said at the time that the price reflected the fact the villages were going to a community housing provider and better-protected tenants than if the properties went on the open market.
Napier accountant Pene Johnstone said Napier City Council could go the same route, leading to a massive loss to ratepayers.
She said she believed the council was going to sell to Kāinga Ora because the government organisation was currently in the market.
Johnstone said the flats would run at a projected surplus rather than a deficit if the council decides to keep them.
She argues that the projected capital expenditure listed in the Pricewaterhouse report on the community housing is a discretionary cost.
The reports show a $19.375m deficit over 10 years and an $80m deficit over 25 years.
Johnstone calculated that without capital expenditure there would be nearly $2m surplus over 10 years and just over $10m surplus over 25 years.
"The only reason they make a loss is that they have calculated they want to replace all the housing over the next 25 years and it's going to cost $80 million.
"It's not a maintenance cost, it's just an improvement cost."
A council spokeswoman said the projected capital expenditure was an essential cost to keep the ageing housing stock fit for purpose and to remain compliant with healthy homes legislative requirements.
"The capital included in the forecast is to replace essential items such as roofing, floor coverings, carpet, heating and electrical."
The Napier Housing Coalition is protesting the potential sale of 377 council-owned units due to fears for the security of existing tenants. Photo / Warren Buckland
Bedingfield said she has heard concerning stories from pensioners in Kāinga Ora properties who didn't feel safe around other tenants.
"I just got an 80-year-old guy and it is so sad, he has finally had to move himself after 38 years. I am visiting every day because he is so distraught, he got so intimidated."
Gordon Hartley, resident of a Napier City council-owned unit, said it would be better if the community housing remained for pensioners regardless of their future. Photo / Warren Buckland
Bedingfield's group is concerned that as older tenants vacate the properties they will not be replaced by more pensioners and the kaupapa of the community housing will change.
She estimates pensioners make up 80 to 90 per cent of existing tenants in the council-owned community housing in Napier.
Council-owned unit resident Gordon Hartley said he understood the high unmet need for housing among other groups but it would be better for the existing residents if the pensioners remained the primary candidates for occupancy if the council decided to sell.
"If they sell, keep them as pensioner housing."
The council spokeswoman said no decisions have been made on the proposals for the community housing yet other than no sale through the open market.
