Nelson City councillors backing community housing plan

Thursday, 28 March 2019

Community housing at the Renwick Flats on Examiner St in Nelson

The majority of Nelson City councillors have thrown their weight behind a proposal to sell 142 community houses.

The potential sale was discussed at a Nelson City Council meeting on Wednesday, as one of the features of the 2019/2020 Annual Plan Consultation Document.

Mayor Rachel Reese said the objective of the proposal was focused on meeting the growing demands for more social housing.

'If I felt we had the tools available to us to be the best provider of social housing … that is the course we'd be proposing today – that's not the case so we've got to work to see what we can do.

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'I have engaged with Minister Twyford around capital funding for local government and income-related rental subsidies for local government, but that is not on the table.'

The Nelson Tasman Housing Trust are one of the groups interested in taking on the properties. Pictured: Nelson Tasman Housing Trust director Carrie Mozena.

Tim Skinner was the only councillor to vote against the community housing proposal (Councillor Matt Lawrey also voted against the Annual Plan Consultation Document, but based on objections related to the climate change targets set out in the plan).

Skinner said it was a mistake to sell off the housing portfolio, with fears that tenants could 'fall through the gaps' in the hands of a different housing provider.

'The stock is in pretty good nick, buildings are doing well and pensioners are generally pretty happy.

'This sounds more and more like a firesale … there are other things we could prioritise if we want to save $170,000.'

Councillor Ian Barker said the proposal would allow other social housing organisations to do what the council was currently unable to.

Barker said the current cap on rents imposed on the council (fixed at 25 per cent of New Zealand Superannuation) had made the housing portfolio unprofitable.

'Our units have the cheapest rents in NZ, our cap has meant there has not been an income to support a continued level of housing, so the ratepayers have had to subsidise it.

'This is a solution. What we couldn't get in terms of government grants, these groups will [be able to].'

Barker said from speaking to tenants they were very happy in their current units, and did not want to be mixed up with other housing groups or age brackets.

Councillor Mel Courtney said he supported the proposal, provided the security of the current tenants was maintained.

He also said the current council had been failing to meet the standards required for community housing.

'We don't have the funds to refurbish the renewals, and we don't have the finances to invest in new community housing … there are others who could be doing the job better.'

Councillor Gail Noonan said she had met with residents in the affected properties on several occasions, and encouraged them to put forward their own submissions.

'They've got some interesting views which range across the spectrum.'

The stated purpose of the sale is to help future investment into community housing in Nelson.

The proposal states the current portfolio will be sold to another community housing organisation (including amongst others Housing New Zealand or the Nelson Tasman Housing Trust), with the current tenants of the properties retained.

The money made from the sale would then allow council to re-invest in further social housing projects, although as a partner rather than an owner or landlord of any new properties.

Most of the current 152 tenants are 55 or older, with priority being given to older residents with limited financial means.

Submissions on the consultation plan will open to the public on Friday March 29, with all submissions to be received by council by 5pm on May 2.