More than $1.6 million has already been spent on these three-storey apartments on the corner of Ranolf St and Malfroy Rd that might not get built. Image / Supplied
More than $1.6 million has already been spent on these three-storey apartments on the corner of Ranolf St and Malfroy Rd that might not get built. Image / Supplied
More than $3 million has been spent on 64 Kāinga Ora houses in Rotorua that might not go ahead.
But despite the halting of some projects - including multi-storey developments - the Government’s housing arm says it is confident it will meet social housing delivery expectations.
Kāinga Orareleased updated figures to the Rotorua Daily Post this week after the New Zealand Herald revealed on Tuesday the Government had spent nearly $300m nationally on 371 public housing projects at risk of being cancelled.
The planned houses are up in the air after the National Government ordered Kāinga Ora to examine its spending as part of a review into the agency.
The figures released by the Herald were based on July data which at that time painted a gloomier picture for Rotorua - showing $15.4m spent on the 34 projects at that time hanging in the balance.
Kāinga Ora confirmed to the Rotorua Daily Post new figures from the end of September showed it was on track to deliver 380 new homes, with 25 finished in the past couple of months.
There were now 10 projects totalling 64 homes still under review, with $3.12m spent on them so far.
Among them were 24 apartment units on the corner of Malfroy Rd and Ranolf St – the final stage of a development on long-empty land.
Also under review was a large development of 14 homes between 65 and 65B Clayton Rd, with two, three and four-bedroom duplexes and standalone homes. If approved, they would be ready in June 2025.
Kāinga Ora Bay of Plenty regional director Darren Toy. Photo / Andrew Warner
Kāinga Ora Bay of Plenty regional director Darren Toy said there were 22 developments comprising 219 houses under construction or contracted in Rotorua as of September.
A further 29 developments of 138 houses had been approved and were expected to progress to contract with build partners, Toy said.
“Our assessment process is focused on getting best value for money and involves looking at thecosts and plans of the proposed projects and checking they still stack up financially and that there are not better options for using the site.”
MP wants bang for buck
Rotorua MP Todd McClay said the Government’s review of Kāinga Ora in December last year highlighted inefficiencies and concerning financial performance and governance.
He said if Kāinga Ora could not build the homes with good bang for taxpayers’ buck, it should step aside.
“The decision to pause local projects sits at an operational Kāinga Ora level and was not Government-directed.
“If they are not to go ahead, that land should be made available to the private sector and local groups to also provide rental accommodation.”
He said Kāinga Ora and other government agencies had been told to stop sending people to Rotorua for emergency housing, and Rotorua people must get first preference when houses become available.
Rotorua MP Todd McClay. Photo / Andrew Warner
“The number of people who currently reside in emergency housing motels is less than the number of state houses proposed to be built.”
He said use of motels would keep winding down as demand dropped, and another four would be closed by the end of the year.
The Government, through the Ministry of Housing and Urban Development, has applied to the Rotorua Lakes Council for an 12-month extension for the resource consents for seven emergency housing motels.
Some reported more crime and anti-social behaviour around emergency housing motels, including drug use and dealing, defecating in tourism attraction carparks and prostitution.
Public submission hearings before independent commissioner David Hill begin on Monday.
A developer’s view
Rotorua developer Tony Bradley, who had just finished large-scale housing projects for Kāinga Ora on Lake Rd and Fairy Springs Rd, said while it sounded like a lot of money had already been spent on the local housing proposals, in his view it was best to stop now before more was wasted.
He said the figure of about $3m was not a lot when you broke it down to the 64 homes.
He said Kāinga Ora should stick to its core function - being a landlord - and leave the building to the experts.
In his opinion: “I think it’s good what they’re doing this (halting projects) because everything they were building was costing way more than it should. They need to leave it to the people who do this.”
Tony Bradley at his Lake Rd Kāinga Ora development during the construction phase. Photo / Kelly Makiha
He said as a developer, he checked costs were stacking up and made changes if they were not.
“As bad as it sounds, sometimes you have to put the brakes on.”
Bradley said Kāinga Ora should run more projects like his two recent developments - paying experts to do the job quickly and efficiently and buying it at the end for an agreed sum.
“For Kāinga Ora there was no risk whatsoever.”
Where the Rotorua homes are
There are 22 projects with 219 homes contracted or under construction. The locations and number of homes are:
Alison St - 3
Brookland Rd - 4
Clayton Rd - 12 (3 developments)
Elizabeth St - 4
Fairy Springs Rd - 16 (2 developments)
Island View Rd - 4
Kawaha Point Rd - 16 (2 developments)
Kea St - 5
Lisa Cres - 5
Malfroy Rd - 6
Mansfield Rd - 49
Mathew Pl - 19
Old Taupō Rd - 5
Ranolf St - 17 (two developments)
Roosevelt Rd - 6
Tania Cres - 12
Victoria St - 36
There are 29 projects with 138 homes approved and expected to progress to contract. The locations and number of homes are:
Alastair Ave - 3
Alison St - 3
Amohau St and Eruera Sts - 3
Aquarius Dr and Virgo Pl - 13
Beech Pl - 3
Bronte Pl - 3
Chaucer Pl - 3
Clinkard Ave - 9
Collie Dr - 3
Deborah Pl - 3
Delphi Pl - 3
Ford Rd and Irene Pl - 9
Frances St - 3
Kawaha Point Rd - 6
Leslie Ave - 3
Meadowbank Cres - 10
Mount View Dr - 3
Pandora Ave - 3
Pedlar St - 3
Pukuatua St - 10
Puriri Cres - 8
Ranolf St - 2
Reeve Rd - 3
Rimu St - 2
Ruth St - 6
Steeles Lane - 3
Sunrise Ave - 3
Turquoise Pl - 3
Wrigley Rd - 9.
Kelly Makiha is a senior journalist who has reported for the Rotorua Daily Post for more than 25 years, covering mainly police, court, human interest and social issues.
