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Home / New Zealand

Cyclone Gabrielle, Auckland Floods: Owners nervous over accommodation aid as fate of weather-hit homes remains uncertain

RNZ
23 May, 2023 11:35 PM3 mins to read

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PM Hipkins, Grant Robertson and an array of other ministers and local MPs announce plans to splash $941m in Budget 2023 to rebuild communities after various floods and Cyclone Gabrielle. Video / Warren Buckland

By Kate Green of RNZ

Residents affected by Cyclone Gabrielle and the Auckland floods say their accommodation money is running out.

Many families can no longer live in their homes, but are still paying mortgages on top of rent.

Insurance companies paid out upwards of $20,000, depending on the policy, for temporary accommodation, but this is a one-off payment.

Maria Koppens’ Muriwai home was one of many red-stickered, following Cyclone Gabrielle.

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Houses damaged in Karekare. Photo / Hayden Woodward
Houses damaged in Karekare. Photo / Hayden Woodward

She said a survey of Muriwai red-stickered residents showed 41 of 95 said they would run out of temporary accommodation money by August.

“That amount of money at market rate in Auckland doesn’t last long. We are looking to run out in August, and I think that’s quite common.”

The government’s Temporary Accommodation Service (TAS) had offered long-term temporary accommodation for less than market rent, but only where homes were available.

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Koppens said when she called TAS after the cyclone, she was told she should accept any rental she could find.

“They said that there was nothing available, that we had no hope of getting anything in the foreseeable future.

“[TAS] said, if you can find anywhere, grab it. If it’s too expensive, just grab it, because there’s nowhere else.”

This had led to families accepting higher rent than they could afford long-term, alongside existing concerns about rising mortgage rates and the cost of living, she said.

Some Muriwai residents had applied to the Auckland Council Mayoral Relief Fund, but Koppens said all those she had spoken to were told they would receive a one-off payment of $1000.

For most people, this amounted to little more than one week’s rent.

Work and Income could help subsidise rent, but it was means-tested. According to its website, the maximum assistance was for a sole parent, with two or more children, at $305.

“They said that there was nothing available, that we had no hope of getting anything in the foreseeable future.

“[TAS] said, if you can find anywhere, grab it. If it’s too expensive, just grab it, because there’s nowhere else.”

This had led to families accepting higher rent than they could afford long-term, alongside existing concerns about rising mortgage rates and the cost of living, she said.

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Similar experience in Hawke’s Bay

It was the same story in Hawke’s Bay.

Louise Parsons, an advocate for the Bayview and Eskdale communities, said people had no idea how long they would need to keep paying rent.

A car through a house on Shaw Rd in Eskdale near Napier. Photo / Warren Buckland
A car through a house on Shaw Rd in Eskdale near Napier. Photo / Warren Buckland

“People are waiting for this certainty from the government,” she said. “Some people have just gone out and bought a new home, so they’ve now got two mortgages, so money is definitely going to run out.”

The government decision in question was that of which category properties fall into, considering the damage they sustained during the cyclone and their location.

Insurance companies will not be writing off and paying out on homes until that has been decided.

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Parsons said putting temporary homes on properties where the existing dwelling was red stickered would be a good option in the meantime and TAS plans to do just that.

Accommodation response manager Steve Watson previously told RNZ there were plenty of motorhomes and portacabins to go round.

But they, too, were waiting on that government decision, to know whether or not the land was safe to live on.

Parsons said it was taking a toll.

“This always just boils back down to the fact that we need this announcement made from the government about when and how people are going to be able to move forward.”

The longer they waited, the lower families would run with their rent.

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