Pensioner housing on Lucas Place in Rotorua. Photo / Mathew Nash
Rent increases for Rotorua Lakes Council’s pensioner housing have been delayed again, as questions remain over how residents will meet the costs.
Meanwhile, renovations have been deemed uneconomical for some properties at one location, putting their future in question.
Last August, the council announced plans to transfer management of its pensioner housing portfolio to Emerge Aotearoa, a community housing provider.
The current system costs ratepayers about $1 million a year, with many of the 152 homes in poor condition.
The shift from council management was also intended to give tenants access to government housing assistance that was previously unavailable.
But fortnightly rents will skyrocket, with some estimated to increase by up to 150%, though exact figures will depend on individual circumstances.
In January, Westbrook resident Joe Douglas told Local Democracy Reporting that even after government assistance, he will be $126 worse off every two weeks.
He said this week that nothing had changed since then, except the delay meant he would have to reapply for the Government assistance closer to June.
Management was due to pass to Emerge on March 1, at which point rents across the portfolio would have risen to market rates.
That handover date has now been pushed to March 23, as some residents scramble to figure out how to cover the increase now kicking in from June 1.
Emerge Aotearoa housing trust general manager Hope Simonsen said the March deadline was difficult to meet due to its proximity to Christmas and the extended delay should be the “final one”.
“We don’t intend any further delays,” Simonsen said.
“It gives us time to identify who needs extra support and guide them through the process.”
Simonsen noted that some residents have yet to complete assessments with the Ministry of Social Development (MSD) to determine the support they are entitled to.
“MSD decides what’s affordable for people,” she said.
“They attend our regular meetings, do the full assessments, and we support tenants to ensure they get their entitlements. We then work with the council on what that looks like for each individual.”
The transfer, first announced in August, was initially expected in October, but was not signed off on until January.
Rents would rise in June, rather than February as previously planned.
Simonsen acknowledged the process had been “awkward” but said the changes were necessary.
“We couldn’t leave things as they were, even if not everyone will be 100% happy immediately,” she said.
Since October, work has been underway to bring all units up to Healthy Homes Standards, including heat pump installations.
But some Lucas Place properties will remain unoccupied.
“The units would require more work than is reasonable and still wouldn’t be suitable,” Simonsen said, noting that the council will make the final decision on their future.
Rotorua Lakes Council destination development group manager Jean-Paul Gaston said the June start date allows residents more time to prepare.
“The priority is for the transition to be as smooth as possible,” Gaston said.
“We want to give everybody the time needed to get everything in place before any changes take effect.”
He added that the council remains focused on ensuring all tenants receive available support.
Gaston encouraged those who have not yet started the MSD process to contact Emerge.
The council has previously committed to ensuring pensioners solely dependent on superannuation would be no worse off financially, likely through contributions toward power or other utilities.
Gaston said the council was “still working through the process” of how such a system might work.
Mathew Nash is a Local Democracy Reporting journalist based at the Rotorua Daily Post. He has previously written for SunLive, been a regular contributor to RNZ and was a football reporter in the UK for eight years.
– LDR is local body journalism co-funded by RNZ and NZ On Air.
Clarification
The management handover is happening March 23, with rent increases from June 1.