Council is working through the sale of its elder housing villages to one or more public housing providers while considering separating two villages from the portfolio and selling that land at market value.
Throughout this process, tenant wellbeing remains the number one priority, that includes protecting tenants’ tenure and rent affordability. All tenants will continue to have an affordable place to live.
What’s happening now?
We have begun a formal negotiation process with ‘Kāinga Ora – Homes and Communities’, central government’s housing provider, with the aim to reach an agreement to sell the villages to Kāinga Ora (a final decision has not been made yet). This process is very much focused on getting the best possible result for our tenants. We expect the sale to be completed in 2021.
As part of the pre-sale due diligence, we have identified two villages – Pitau Road village and Hinau Street village – which are in a location (central Mount Maunganui) which is not a priority area for public housing demand.
Therefore, Council has decided to consult with the community on the future of Pitau Road village and Hinau Street village as part of the upcoming Long Term Plan. That includes looking at alternative uses for those parcels of land. Kāinga Ora is supportive of council’s decision to consult on the future of these two villages.
There will be a formal consultation document that explains more about this process and why we have decided to consult on the future of these villages. This document will be finalised in April and will be consulted on with the community from 7 May.
No matter what Council decides, all tenants will be well-cared for and will continue to have an affordable place to call home.
Why is council selling to a public housing provider?
Simply, because someone else can do it better. Government policy doesn’t support councils to run this activity effectively, so we are climbing an uphill battle.
Right now in Tauranga, council has 246 units across nine villages. But that is not enough to keep up with the rapidly growing demand for affordable elder housing. Over one third of the units are around 50 years old and none are less than 25 years old. That means many units have less than 10 years of useful life remaining before significant modernisation, and in many cases redevelopment, is required to bring them up to current housing standards.
If we want to do the right thing to ensure our city’s elder housing tenants are receiving the best possible service to meet their needs, now and in the future, then selling to a public housing provider is our best option.
Who are public housing providers and why can they do it better?
Public housing is provided in New Zealand by Kāinga Ora (central government) and by registered community housing providers. Community housing providers are community based, not-for-profit organisations focused solely on providing public housing and affordable rental housing.
Unlike councils, public housing providers have access to central government funding allowing them to provide subsidised housing. That also puts them in a far better position to upgrade, replace and increase stock.
On top of that, where council can only act as a landlord, public housing providers can offer much more. They can provide tenants with access to wraparound services (budgeting advice, disability support, etc) and new tenants with access to income related rent subsidies (IRRS).
Caring for our tenants
Through the sale of the villages we want to achieve a number of important outcomes – like security of tenure and keeping rents affordable for existing tenants. In addition, we are considering how we can ensure additional units are built and that all units are to a higher standard. This might mean tenants are moved to new accommodation to enable the improvements to take place. At all times, tenants will have a place to call home.
We meet regularly with our tenant advisory group (a tenant rep from each village) who we share updates with and who guides us on how the remaining tenants are feeling. This group has been invaluable, and we are very grateful for their time.
We have also have hired a tenant support officer. This person is dedicated to working with our tenants to ensure they have the support and information they need during the sale process.
All of our current tenants will continue to have an affordable place to live, now and in the future.
Updates to tenants on the sale progress
Sale of elder housing villages update - March 2021 (107kb pdf)
Information for Pitau Road village and Hinau Street village tenants – March 2021 (130kb pdf)
In 2017, Council carried out a review of its elder housing portfolio, operations and future service delivery. The review comprised three elements – an independent report by the New Zealand Housing Foundation, tenant engagement through the establishment of a tenant advisory group, and wider stakeholder engagement through the establishment of a working group.
The initial findings were presented to the Community and Culture Committee meeting on 8 August 2017. The committee agreed that council should progress with its investigation into how best to provide elder housing services in Tauranga with a more in-depth investigation into two options:
- Council retains ownership of the elder housing portfolio and partners with a community housing provider
- Council divests the current elder housing portfolio to a community housing provider
New Zealand Housing Foundation report (1.2mb pdf)
The findings from the in-depth investigation were presented to the Community and Culture Committee meeting on 14 November 2017. The committee agreed to seek community feedback on whether council should divest its elder housing portfolio to one or more registered community housing providers, through the 2018-28 Long Term Plan.
Option analysis report (389kb pdf) Business case proposal (473kb pdf)
One of Council’s key priorities is to provide a higher standard of living for all residents and ensure that our city’s elder housing tenants are receiving the best possible service to meet their needs, now and in the future. Tenant welfare has been the primary consideration, with an agreed outcome that tenants are no worse off than before, with access to better well-being services and affordable housing.
A total of 2050 submissions were received on the elder housing topic during the Long Term Plan community consultation process.
758 (37%) were in support of option 1 (retaining the status quo)
843 (41%) were in support of option 2 (to divest to an approved community housing provider)
449 (22%) selected neither option
The mayor and councillors emphasised the welfare of elderly tenants was the number one consideration in the decision to divest. The welfare of current tenants will be protected through the use of covenants to ensure tenure, rent stability and retention of numbers of units.
Any money raised from the sales of the nine villages – 246 units – will be set aside in a reserve for elder or social housing-related use.
If you would like further information, please contact Fiona Nalder on 07 577 7000. If you are a tenant in one of our villages, you can contact our tenant support officer, Jenni Hurn, on 07 557 6967 or 027 208 1719.
Last Reviewed: 17/03/2021