Bankrupt her!
In early 2000 I purchased a modest home in Mangonui, using my mother's inheritance as a deposit. I was then a single mother of four and this was to be my family home. I fulfilled all my obligations in regards to building, paid my rates, completed permit requirements and worked with the FNDC to achieve a home that I could raise my children in.
At no time, within this process or in fact the first year, was I informed of a community development tax. And yet here the $9000 invoice is.
I have received no written response from the FNDC to my enquiry on what these funds went on in my street. I have no mains water, no rubbish collection, no street lights, no kerbed footpaths. Replies via call centre enquiries are that the funds go towards items such as the waterfront development and parks.
I'm resentful that my property does not have tangible evidence of community development funds being spent there, but as a property owner I also realise that I should contribute towards the betterment of my community.
I don't have $9000 at immediate hand, or access to it via credit avenues.
I live within my means, and always have done. I tried to make a financial arrangement proposal to the FNDC, which was rejected outright. They referred my case to Baycorp. I now have a blemish on a clear credit history.
Baycorp have stated that their client (FNDC) has told them to declare me bankrupt if I do not pay the minimum $100 per week - a sum I cannot afford.
Baycorp are also adamant that my (new) husband's income is also subject to the debt. The debt is mine. The account due is in my name. The property is mine only. Only my children will benefit from the property.
I believe this is bullying by both Baycorp and FNDC.
My clean credit rating attests to my ability to pay my debts. Baycorp and FNDC have effectively stained my credit rating and are threatening my way of life and ability to keep and develop a secure financial reputation and livelihood.
I would like to hear from any other property owners who are under-going the amount of stress and heartache that I am currently facing.
I believe common sense has left the building, and that as a group (for I believe there will be others) we will have more impact in ensuring this bullying stops and that both the FNDC and Bay Corp desist in these stand-over tactics and practice collaboratively working with willing debtors towards a positive outcome.
Please contact fndcandbaycorpbully@gmail.com
A ROBINSON
Mangonui
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Far North District Council Communications Manager Richard Edmondson responds:
The Far North District Council is unable to comment on the details of this case. However, it does wish to address several points made by Ms Robinson.
First, the council does not levy a 'community development tax'. It requires people building new homes to pay development contributions to fund the capital costs of new infrastructure, such as roads, water, wastewater, stormwater and reserves.
This money may not necessarily be spent on new infrastructure in the street the new home is located in, but it is spent in the same ward.
Second, home-builders are told at the beginning of their projects how much they will have to pay in development contributions.
This allows them to factor the contributions, which are payable when a building consent is granted, into their project costs.
Contributions are calculated in accordance with charges set out in council's development contributions policy and displayed on its website.
Home-builders can request a reduction in their contributions if they believe these are wrong or they are unable to pay them due to financial hardship. However, they must object within 15 days of council issuing a development contributions notice and invoice.
Finally, council only refers an unpaid debt to Baycorp as a last-resort action when a debtor hasn't responded to phone calls and letters or committed to a payment arrangement that clears the debt within a reasonable period. Staff don't enjoy referring debts to Baycorp for collection, and try very hard to work with debtors to avoid this course of action.
Having an overdue account with Baycorp doesn't necessarily mean the debtor won't get credit in the future. A creditor may agree to provide credit if the account has been paid in full and the debtor otherwise has a good credit history.