That funding would allow the council “to refine the business case, find a partner, develop an implementation plan, set up the structure of the new entity, manage tenant or property change and transition management”, it said.
Another $200,000 will be spent to accelerate design work on a new affordable housing development.
Councillor Rob Vinsen questioned why the housing entity went to public consultation, because it was a model used across the country.
Councillor Josh Chandulal-Mackay said there were people in the community who relied on the council to provide housing and they deserved to hear from elected members and officers.
“There were some very real concerns about what this would mean for people and their security of tenure – making sure they had roofs over their heads, making sure their rents weren’t going to be suddenly increased,” Chandulal-Mackay said.
“I’m glad we did that, because it is important.”
Councillor Josh Chandulal-Mackay says some people in the community rely on the council to provide housing. Photo / NZME
Whanganui Mayor Andrew Tripe said people in pensioner housing were proud of their homes but some properties were deteriorating badly.
The council had talked about housing solutions for several years but “we haven’t landed much”, he said.
“We need to do something different.
“This is a model that’s been tried elsewhere and it’s working.”
Deputy Mayor Helen Craig said she supported the council’s plan but there was no guarantee the search for a partner would be successful.
“I would really caution council as they go through each step, that we carefully examine each step before we go and spend money.
“You could be $1 million, or $750,000, or $500,000 down the line and have absolutely no result.”
The council will debt-fund the cost of setting up the entity and repay it over 10 years.
That is about $4.50 per rating unit a year for 10 years.
Councillor Kate Joblin said there was still a lot of work to do but people in the sector “who have gone before us” were welcoming and keen to share information.
“I feel very well supported by those around the country who are already doing this work to provide affordable and social housing.
“I’ve heard mention that Three Waters is an important, once-in-a-lifetime decision. I think housing is even more so.”
Tripe said Whanganui’s population was increasing and ageing, and the housing shortage was not going away.
“This gives us the opportunity to step up, listen to our community and offer a solution.
“There has been a debate about whether council should be in the business of housing.
“This actually finds a balance.”
Mike Tweed is a multimedia journalist at the Whanganui Chronicle. Since starting in March 2020, he has dabbled in everything from sport to music. At present his focus is local government, primarily the Whanganui District Council.
