Anns Volcanic Motel and New Castle Motor Lodge are no longer contracted emergency housing motels. Photo / Andrew Warner
The Government has dropped two of its 13 contracted emergency housing motels in Rotorua after a “marked decline” in people needing help.
It comes as Rotorua Mayor Tania Tapsell this week met urgently with Housing Minister Megan Woods and government officials to discuss ongoing emergency housing concerns.
New Castle Motor Lodge on Ward Ave and Ann’s Volcanic Rotorua Motel on Malfroy Rd are no longer used as contracted emergency housing motels, the Ministry of Housing and Urban Development confirmed.
The number of people living in contracted motels has dropped steadily since last year and has significantly dropped in the non-contracted motels.
But some in the city are concerned the clientele has moved to living in backpackers, lodges and other motels, with their rent subsidised through Ministry of Social Development [MSD] accommodation supplements.
Tapsell told the Rotorua Daily Post this week the issue was one of three concerns she requested be discussed at the urgent meeting on Tuesday with Woods and government officials.
“I have requested an urgent solution to long-term semi-permanent [government-funded] tenancies, at backpackers and other motels. I don’t understand why MSD is trying to distance themselves from it. I want to address the tenancies as well and get assurances from Tenancy Services the buildings are compliant and it’s an appropriate use of the buildings.”
She said she also discussed crime, safety and damage to the city’s reputation as well as concerns contracted emergency housing motels were under capacity.
Tapsell told the Rotorua Daily Post before her meeting there had been good progress in Rotorua since the signing of the Rotorua Housing Accord between the Government, Rotorua Lakes Council and iwi in November but some issues were ongoing.
Last month the Rotorua Daily Post reported Glenholme resident Carolyne Hall wrote a strongly-worded letter to Tapsell saying Rotorua was “under siege again” from what she believed were problems stemming from some people in homeless motels — including crime, begging and people sleeping in doorways.
Hall told the Post this week there appeared to be an influx of particularly single men now living in backpacker-type accommodation, which were neither contracted nor non-contracted emergency housing motels.
“It’s just moving problems around without giving them any sustainable way of living to make it better for them.”
In May, Rotorua police said reported crime had been rising around backpackers and hostels and suggested it was linked to this movement of people.
A former emergency housing provider told the Post in December he was now providing rental accommodation to mainly beneficiaries and was being paid directly by the ministry.
Ministry of Social Development acting regional commissioner for the Bay of Plenty Graham Allpress said emergency housing was intended as a last resort, not long-term accommodation.
Those clients had to keep looking for “sustainable” options such as private rentals, transitional housing, and public housing.
He said the ministry supported clients to move into private rentals it was more secure, and ongoing tenancies were covered by the Residential Tenancy Act and were cheaper for taxpayers than emergency accommodation.
People who qualified for accommodation supplement payments — more than 8400 of them in Rotorua — were given money to help with their rent, board or home ownership costs. He could not be more specific about where recipients lived.
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He said legislation provided the ministry no role to do building inspections, monitor building regulation compliance, or direct its clients to live in particular accommodation. Its role was financial help.
He said some clients had the ministry pay a portion of their benefit payments directly to landlords.
Allpress said the number of motels it used for emergency housing had dropped from 34 last September to nine in August.
Fenton St now had only three non-contracted emergency housing motels.
The number of households in non-contracted emergency housing in Rotorua was down 60 per cent from 231 last September to 93 in August.
When consents were granted for the 13 contracted emergency housing motels last year, it was said they could cater for 868 people in 297 units.
Emergency housing figures from July show there were 498 people in contracted motels (270 adults and 228 children).
Asked why the now 11 motels were not at capacity, Ministry of Housing and Urban Development’s William Barris said resource consent conditions only allowed for certain groups to be placed into these motels.
He said the main focus was on families with children and other vulnerable groups including young people, people with disabilities and the elderly. This means some in non-contracted motels could not be accommodated.
Barris said occupancy rates varied and there were always some vacant units for various reasons.. A small number were used for on-site management.
He said there had been a “marked decline” in people needing emergency accommodation as more housing options became available during the past few months.
This had resulted in the ministry ending its contracts with two motels.
Barris said the ministry would keep monitoring demand.
Barris said the Government paid $32.18 million towards contracted emergency housing in the 2023/24 financial year.The monthly average accommodation cost per unit for the 13 Rotorua motels during the past nearly two years was about $4500.
In a post-meeting written statement to the Post, Tapsell said she requested “urgent solutions” and had a positive response with a willingness to build on the progress so far.
“We agreed that we all want to see the fast-tracking of our exit strategy from motels, and acknowledged this means building more appropriate housing options. I reinforced the importance of working together to ensure solutions are locally led and benefit Rotorua locals,” she said.
She said all parties had follow-up actions to continue progress on reducing the issues in Rotorua.
Woods described the meeting as constructive and noted the “significant progress” to reduce the number of people in emergency housing and motels used for this in Rotorua.
She said they agreed to continue working together on this. “Responsibility for addressing these issues, such as the use of backpackers, rest with both central government and the Rotorua Lakes District Council.”
Woods said they discussed council “levers” that would allow for more contracted motels and continued work to deliver more public homes in Rotorua, with 350 delivered by the Government and more than 500 to come by 2025.
Regarding safety, she said MSD had previously offered to assist the council with provision of security.
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.
Mark Hohua, known as Shark, was allegedly beaten to death by fellow gang members in 2022.