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Home / New Zealand

Elder housing ‘crisis’ looms: Tauranga City Council considers $10m to help kickstart Housing Equity Fund

Kiri Gillespie
By Kiri Gillespie
Assistant News Director and Multimedia Journalist·Bay of Plenty Times·
14 Aug, 2023 06:00 PM6 mins to read

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Tauranga City Council has been asked to prioritise elder housing amid concerns the city has a "vacuum" of rental properties for pensioners. Photo / Getty Images

Tauranga City Council has been asked to prioritise elder housing amid concerns the city has a "vacuum" of rental properties for pensioners. Photo / Getty Images

An 80-year-old woman turned down for rental housing five times is an example of a “looming crisis” facing Tauranga, an elder housing advocate says.

Greypower Tauranga and Western Bay of Plenty representative Vanessa Charman-Moore told a Tauranga City Council meeting yesterday she was regularly approached by “distressed superannuants” struggling to find a roof over their heads.

Charman-Moore, a seniors real estate specialist, asked the council’s commissioners to prioritise the plight of senior renters as they considered the council’s role in the newly established Bay of Plenty Housing Equity Fund.

The commission was considering approving an initial investment of $10 million into the Housing Equity Fund.

The money would come from the proceeds of the council’s sale of its elder housing portfolio. Seven villages were sold to the Government’s housing agency Kāinga Ora for $17.2m last year, with the other two — Pitau Rd and Hinau St — up for sale for private development.

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Commissioners also considered whether to approve investing any as-yet uncommitted money from the sales into the fund or alternative affordable/social/elder housing projects.

That decision would not be subject to community consultation, but the initial investment proposal was.

A report presented to the meeting stated the council received 67 responses about the proposal and 70 per cent supported using the sale proceeds for housing outcomes. Of those, 89 per cent supported investment into the Housing Equity Fund.

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The Housing Equity Fund was established with $40m in total provisionally invested from Bay Trust, Tect, Rotorua Trust, Whakatāne-based Trust Horizon and Tauranga City Council. It had a minimum initial goal of $100m, including borrowing, and was expected to create affordable, sustainable housing for those in the greatest need.

Any funds the council invested would be spent in Tauranga.

Charman-Moore said without the council’s elder housing, there was little provision for senior renters who could end up on year-long Government waiting lists, competing with others for suitable housing. In the private sector, they also often lost out, she said.

Some landlords were wary of elder tenants being able to maintain their property, she said.

“I spoke with an 80-year-old woman who had been turned down five times.”

Charman-Moore said the combination of Tauranga’s ageing population and lack of appropriate housing options for older people — such as secure one- to two-bedroom homes — was a “looming crisis”.

“The lack of options, the lack of security and the stress of potential homelessness that comes at an older age is deeply concerning,” she said.

“It’s nearly impossible to live on superannuation if you still want to eat.”

Greypower Tauranga and Western Bay of Plenty representative Vanessa Charman-Moore is a seniors real estate specialist. Photo / Alex Cairns
Greypower Tauranga and Western Bay of Plenty representative Vanessa Charman-Moore is a seniors real estate specialist. Photo / Alex Cairns

Earlier this year, the Bay of Plenty Times reported more people were retiring without owning a home, and being left to the mercy of the market. These included a 67-year-old living in his car for two years.

Charman-Moore also asked that the future city council representatives expected to help form the fund’s board and investment committee were not politicians.

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She believed it was important whoever was helping to make decisions about where funding went had a long-term strategic plan in mind and not one of a three-yearly local government cycle.

Age Concern Tauranga board members Roger Goodman and Adrienne von Tunzelmann echoed concerns about the rental market being “poorly suited” for seniors.

Goodman also stressed the need for senior-specific funding within the Housing Equity Fund.

“We are concerned that senior housing could get lost in the bigger picture given the uncontested need in other areas. The council needs to be active in communicating its senior housing intentions.”

Von Tunzelmann there was a “vacuum” left by the sale of the council elder housing villages “and a need still exists”.

“What we’d like to hear from the council is its investment in accessing good housing for older people is part of its plan.”

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Tauranga Age Concern board member Adrienne von Tunzelmann.  Photo / Alex Cairns
Tauranga Age Concern board member Adrienne von Tunzelmann. Photo / Alex Cairns

Submitter Christine Ralph believed it was important there was greater definition about how the additional money would be distributed in the future.

“We are a bit concerned that the report says there wouldn’t be any further consultation on how that money is allocated.”

In a written submission to the council, former Tauranga Community Housing Trust chairwoman Jo Gravit said she supported the $10m investment “provided that the priority of investment is into elder housing but not exclusively so that the affordable social and public housing options are also possible”.

Gravit said seniors in need were more reliant on other affordable housing rental options from housing trusts and local authorities.

“I would like to see recognition of local community and iwi-based housing providers who have a proven track record in this sector.”

Gravit also called for a non-political council representative on the fund’s future board and investment committee.

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Commission chairwoman Anne Tolley said the suggestion was “very wise”.

“I agreed, it should not be a politician.”

While there was a desire to “tie this funding up”, there was also a need for flexibility, she said.

“We do want to make sure that elder housing is a significant part of that. It’s probably too early to make decisions on that but I don’t think it would hurt to signal our intentions on that.”

Tauranga City Council commissioner Stephen Selwood. Photo / Alex Cairns
Tauranga City Council commissioner Stephen Selwood. Photo / Alex Cairns

Commissioner Stephen Selwood said the council wanted to use the funds “for the greatest impact, which means we will give priority to the greatest need”.

“That will change over time so that point about being flexible is critical,” he said.

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“It’s possible elderly needs will increase over time, so the flexibility will be needed but equally the needs of others may also increase.”

Selwood said he found the presentations advocating for senior priority “quite moving” but there were others in need who could have also presented an equally moving case.

The commission approved the $10m initial investment — in the form of cash or property — into the Housing Equity Fund, subject to final due diligence.

Later this year, or early next year, a report is expected to be presented to the council recommending an approach for a second tranche of investment.

The timing was expected to be influenced by the sale processes for Pitau Rd and Hinau St villages.

The council previously confirmed the conditional sale of the Pitau Rd site to Sanderson Group, which announced plans for a $100 million-plus retirement and aged care facility.

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Kiri Gillespie is an assistant news director and a senior journalist for the Bay of Plenty Times and Rotorua Daily Post, specialising in local politics and city issues. She was a finalist for the Voyager Media Awards Regional Journalist of the Year in 2021.






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