Panic sets in over Napier community housing rent increases

Denise Woodhams says some uninformed Napier City Council tenants might move out if they took the brochure at face value. Photo / Paul Taylor

Napier City Council's community housing tenants were sent into heart flutters by a brochure telling them rent increases were coming, in one case by more than 70 per cent.

But once worried tenants spoke to council staff, it became clear that subsidies would be applied, and after all the sums had been done none were likely to be paying more than 30 per cent of their income.

Wellesley Rd tenant and experienced campaigner Denise Woodhams pays $196.10 a week and became worried when she received a letter on Monday advising her the rent would increase to $340.40 from next week.

She said that after contacting the council she had a better understanding of the process.

"If I'm confused what's it like for a lot of others who won't understand?"

"Some people might not go to see the council and just end up paying the full amount when they can't actually afford it.

"Some might just move out onto the street. Some will be in complete despair," she said.

The increases come after the Napier City Council's first review in 15 years, with letters hand-delivered to 376 tenants.

Council manager, community strategies, Natasha Mackie said most tenants' payments would increase $10 to $20 a week. Others would decrease when a new rentals formula was applied from mid-January.

She said some of those with increased rent may be entitled to additional accommodation supplement from Ministry of Social Development. However, many on low incomes would already be receiving the maximum MSD support.

Mackie said the rent policy change provided for a subsidy based on a tenant's income instead of charging a blanket rent level.

"Previously, income information was only required to determine tenant eligibility, so the records we have are not current enough to base the payment level on," she said.

"We need to hear from any of our tenants whose new payment would exceed 30 per cent of their current income so we can see if they are eligible for a higher subsidy.

"We have been clear that no tenant will be required to pay more than 30 per cent of their income on their rent and that tenants should contact us to discuss their situation," she said.

Denise Woodhams at her Napier council flat, trying to make head-and-tail of the rent increases. PHOTO/Paul Taylor

A newsletter to tenants said it was clear rents needed to be increased to help meet costs of the community housing, including those resulting from new Healthy Homes Standards.

"The delivery of community housing is fully funded by rental income and current levels of income are not meeting the costs," Mackie said.

"To determine the level of subsidy, we have to review each individual's circumstances and are encouraging any tenant whose payment level exceeds 30 per cent of their income, to contact us so we can adjust the subsidy.

The 10 per cent of tenants most impacted were being contacted by council staff, she said, and by Thursday morning, staff had been contacted by a "handful" of tenants seeking clarification of the letter and were aware others had contacted MSD (Work and Income).