The Whakatāne District Council’s 79 pensioner housing units are to be sold to Tawanui Community Housing (TCHT) for $2.5 million. Ownership of the units will be transferred on 1 October, with all existing tenancy arrangements continued under the same terms and conditions.
The intention to sell the units was confirmed through the Council’s 2015-25 Long Term Plan, following an earlier community consultation process and direct communication with tenants and other key stakeholders. Mayor Tony Bonne says a sale and purchase agreement reached with Tauranga-based TCHT became unconditional on 15 September and provides a range of measures to protect the interests of existing and future tenants.
“Council’s first priority was to ensure that this important community resource is safeguarded so that it can continue to provide affordable, good quality social housing into the future,” he says. “Government policy means that local authorities do not have access to social housing grants and subsidies and, importantly, that our tenants do not have access to income-related rental subsidies. Approved community housing providers do have that access and by transferring ownership to TCHT, we can ensure that our pensioner housing assets will be well-maintained and developed as required to meet the community’s future needs.”
The agreement to sell follows an extensive evaluation process led by a Council sub-committee, with expert advice provided by The Property Group. “Tawanui Community Housing was clearly the best of the three providers who expressed an interest in taking over the operation of the pensioner units. Their principles and practices are a very good fit for those that have guided Council’s involvement in pensioner housing since the service was first introduced in 1965.”
Mayor Bonne says the purchase price is less than the estimated market value of the units, which simply reflects the impact of the undertakings sought by the Council. “From the outset, it was recognised that the conditions we required to protect the community’s interests would affect the value of the pensioner units. But this was never about money and the agreement has been structured to ensure that TCHT can continue to invest in this important service.”
TCHT Manager Chris Johnstone says the Trust is excited to have the opportunity to extend its social housing services into the Eastern Bay of Plenty. “We believe that affordable and suitable housing is not only fundamental to people’s health and wellbeing, but is at the heart of a vibrant and sustainable community,” she says. “We look forward to delivering this key service for the Whakatāne and Murupara communities, and to meeting the needs of our new tenants into the future.”
Ms Johnstone says the Trust sees significant potential to redevelop and increase the capacity of the existing villages over time, including the possible construction of new units on vacant land at the Alice Stone village on Goulstone Road.
The document below contains additional background information and detail on the sale of pensioner housing.
Background Information - Pensioner Housing - (PDF, 194 KB)