We have reviewed our Council housing provision options. We are now consulting to find out what the community’s preference is on three options before a decision is made on the future of Council’s housing provision.
Napier City Council started providing community housing over 50 years ago when, like many other councils, we received low cost government loans to build housing units. Of the 377 units we now have, 80% are for retirees or people with a disability. Our housing units are now up to 60 years old and costing more and more to maintain. Significant work is required in the near future to address deferred maintenance issues.
We have assessed every part of every unit and have anticipated the repair, maintenance and replacement for the next 25 years. The money we receive in rent does not cover the costs of the housing anymore and over the next 25 years we have projected an average annualised shortfall of $2.2million. This shortfall would reach $70million after 25 years. This year, we will borrow to cover any shortfall, but we can’t keep borrowing to cover shortfalls year on year.
We have reviewed our options and we are now consulting to find out what the community’s preference is on three options before a decision on the future of Council’s housing provision.
Community feedback will be considered along with a number of other considerations including our role in improving community wellbeing, the current and future demand for affordable rental housing, changes to the Residential Tenancies Act and its effects on service delivery, the impact on Council’s financial sustainability, the Future of Local Government reform and importantly the impact of the options on current tenants.
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