Maxine Boag Napier City councillor in front of Henry Charles Flats after NCC announced the possible sale off council owned flats. Photo / Warren Buckland
Maxine Boag Napier City councillor in front of Henry Charles Flats after NCC announced the possible sale off council owned flats. Photo / Warren Buckland
Napier City Council is considering selling all of its 377 housing units because it is struggling to meet the costs of maintaining and upgrading them.
Councillor Maxine Boag said the community will need to be loud if they want the units to stay.
The council said raising the rent onthe units to keep up with the work that's needed on the ageing homes is not an option as it would defeat the propose of the affordable housing.
Residents living in the council owned homes are provided subsidised rents based on income which is set at a maximum of 30 per cent of household income.
A recent review of the NCC's housing portfolio identified that the council couldn't continue to provide housing where costs were funded solely through rents.
"This is not the be all or end all, the council is just looking for the community's opinion," Boag said.
Napier City Council's People & Places Committee is set to consider a resolution to publicly consult on council's social housing provision options at its meeting next Thursday, February 3.
The three proposed options council will be looking at includes keeping the units in 100% council ownership, sell some of the housing units or sell all of the units.
Boag is urging Napier residents to read the proposal and have their say through the submission possess.
Submissions open on March 16 followed by a hearing of all submitted opinions on May 18.
The 377 units are a huge asset for the NCC spread over 12 villages across the city, on a total of 10.7 hectares.
Based on a Telfer Young market valuation as at March 20, 2020, the book value of the portfolio sits at $65 million.
NNapier City Council is looking for solutions as it is finding it difficult to financially keep up with housing standards while providing low rent properties. Photo / Warren Buckland
Napier Mayor Kirsten Wise said they are looking at selling as keeping them would be a significant burden on ratepayers.
"We're particularly concerned about the growing need for affordable rentals for superannuitants and the high demand for affordable housing in Napier.
"A significant rate increases year on year to fund the projected shortfalls could have a big impact on others in our community," Wise said.
As well as being concerned about the financial impact keeping the houses will have on the community, NCC says it is also concerned about the welfare of their tenants.
More than 50 years ago council introduced housing for people who needed affordable homes and could live independently.
Eighty per cent of the 377 council-owned units are rented by retirees or people with a disability.
Councils do not qualify for the Government's Income Related Rent Subsidy that other community housing providers receive, which further exacerbates affordability.
Wise said "tenant welfare is a very important consideration for us".
"We don't want our elderly and vulnerable living in sub-standard housing conditions.
"It's important that we look at our future options and consider very carefully what is best for our tenants, as well as considering the needs of our ratepayers.
"We have taken a deep dive into this issue to gain a clear picture of the current situation and identify our future options. We know this process has been unsettling for our tenants, and we are pleased to now be in a position to seek feedback from tenants and the wider community before a decision is made," Wise said.
If the council agrees to put it to consultation at next week's meeting, the consultation will open for four weeks from March 16.
The public can read the proposal at: http://napier.infocouncil.biz/Open/2022/02/NPAPC_20220203_AGN_622_AT_WEB.htm
