Dannevirke: Funds needed for pensioner housing

Tim Delaney

The Tararua District Council does not have sufficient reserves to fund the modernisation of its aging pensioner housing and, unless rents are increased substantially, there will need to be a large funding injection from ratepayers over the next 10 years.

If the council holds on to its pensioner housing, rents will need to increase on average from $76 to $97 by year five of the long-term plan, (2020), but the council has indicated it would prefer to exit from its social housing and sell the entire portfolio, rather than subsidise the service through rates.

However, Dannevirke's Tim Delaney is insisting the provision of housing for the elderly needs to be seen as a mission to be approached with care.

"If we sell off that housing it will be counter-productive," he said at last week's stakeholders meeting in Dannevirke.

But district councillor Tracey Collis said it was the council's duty to ensure people involved in pensioner housing do it with care and passion.

Ratepayers have three options, including retaining the status quo, as decided in the 2014/15 annual plan by selling six of the older units and using the proceeds to help fund the building of six new units.

However, this option does not address all of the aging units in the housing portfolio and it will be some years before they are renewed and/or modernised.

The second option would be for council to retain the newer units and sell the balance of 12 older units in Dannevirke and Eketahuna for redevelopment.

The third option is to sell the units to a suitable housing provider and, at the end of the sales process, council anticipates the proceeds and reserves balance will be $3.7 million. These funds will be used to repay debt and/or invest in district-wide infrastructure. Proceeds from any sale would go into the council's general reserves initially and, in the future, would be used to benefit the district as a whole.

Residents will be able to have their say on what their preferred option for pensioner housing is through submissions to the long-term plan consultation document. You can get a copy from any of the Tararua District Council's service centre or through the council's website, www.tararuadc.govt.nz