Far North District Council is seeking community feedback on how rents are set for its Housing for the Elderly units.
The Council is considering four possible approaches, with a focus on keeping rents affordable while ensuring the homes remain financially sustainable.
Council owns 144 Housing for the Elderly units across the Far North and says some of them need major repairs before they can be lived in. It says that for more than 15 years, rent increases have only matched inflation (CPI), meaning rental income has not kept up with the costs to run and maintain the units.
Under the current rent setting, general rates currently contribute around $230,000 a year to cover the gap between what tenants pay and what it costs to run the units. This amount has varied over the years and goes towards insurance, grounds care, day-to-day repairs, contractor costs and rates.
Recently, staff met face to face with many elderly tenants living in these homes. The visits were an opportunity to explain why a rent review is needed, answer pātai, and provide space for one-on-one conversations on how rents are set before asking the wider community for feedback.
The four options being proposed are:
- Continue CPI-linked increases;
- Link rent to NZ Superannuation, setting it as a percentage of the super rate;
- Adjust rent annually to match operating costs;
- Set rent as a percentage of current market rates for similar units but keeping it below private rentals.
All options include a tiered rent structure, meaning costs could vary by size, location of the unit, and whether it is home to one person or a couple.
“It is important to note that several vacant units require considerable investment to bring them up to a healthy and compliant standard. Years of underinvestment have left some homes untenantable,” the Council said in a statement.
“This consultation does not address the funding needed to repair these units; however, the council is working with its commercial arm, Far North Holdings Ltd, to better access central government funding. Councils cannot access central government funding without legislative change.”
Give your feedback here. Consultation closes on 28 September.
