The Whakatāne District Council’s Policy Committee has signalled a clear preference for the future provision of social housing in the District. A Social Housing Review – Issues and Options Report, received by the Committee on 26 June, sets out six possible options for responding to the issues confronting the future operation of the Council’s 79 pensioner housing units. Mayor Tony Bonne says Council elected members believe that option five – transferring the ownership of the units and delivery of the social housing service to an approved Community Housing Provider (CHP) – offers the best way forward.

“In short, the key issue we have to deal with is that the central Government funding needed to upgrade units to modern standards, and keep rents to affordable levels, is available to CHPs and not to local councils,” he says. “The demand for social housing is also expected to increase because the District’s elderly population will double by 2031. Again, a CHP would have access to Government funding to build more units as they are required, whereas the Council won’t.”

Mr Bonne says the Council is now seeking the community’s views on how the social housing service should be delivered. Preliminary consultation on the proposal opens on Monday, 30 June and submissions will close at 5:00 pm on 30 July 2014. Submissions will be heard by the Policy Committee on 14 August, and Council elected members will then confirm a preferred approach before a formal consultation process is undertaken.

“There’s absolutely no doubt that our pensioner housing does provide a valuable service, but it’s also clear that if we don’t adapt to the new funding rules, our ability to improve housing standards and keep rents affordable will be compromised. Essentially, we’re asking the community to consider how we can ensure that the District continues to have a quality social housing service in 10, 20, even 30 years’ time.”

Currently, rents for Council pensioner units are capped at 80 percent of the assessed market value. Tenants whose only source of income is NZ superannuation can also claim an accommodation supplement. Under a CHP delivery model, rents would be even more affordable because they will be calculated according to each tenant’s income, with the difference between that amount and the assessed market rent going to the provider as a subsidy from the Government.

“That would generate significant income for a CHP and allow it to invest in service improvements which we simply couldn’t afford,” Mayor Bonne concludes. “The Council appreciates that the idea of change may cause concern for some people and if that is the case, I’d like those people to know that any change to our current pensioner housing service will only be pursued if it will deliver better housing standards and more affordable rents for existing and future tenants.”