Tararua District pensioner flats facing rent increase

The pensioner flats in Aften Court, Dannevirke, are among others in the Tararua District facing rent increases.

Rents for pensioner flats are about to be increased as part of a review by Tararua District Council.

Adele Small, council group manager for strategy and community wellbeing, said staff had assessed rentals for the pensioner flats for the 2024/25 financial year.

She tabled a report for the council’s March meeting proposing to increase the self-imposed limit from 30 per cent of gross superannuation to 33 per cent, alongside the new fees structure with rents increasing to 31 per cent of gross super.

The council has a housing portfolio of 85 pensioner units with the majority being around 40 years old.

It was noted that housing is self-funding, with 100 per cent of that funding coming from tenants.

Council had reviewed the superannuation rates, which were increased on April 1.

Under the proposal, the rent for a one-bedroom unit would increase from $165 to $190 per week in Dannevirke, Pahīatua, and Woodville, and from $155 to $190 for Eketāhuna.

Rent for a two-bedroom unit would increase from $240 to $290.

Councillor Kerry Sutherland voiced concerns saying the increase to 31 per cent “or a bit over” of the gross amount equated to 37 per cent of net super.

“We’re getting high at 37 per cent but I do see that hopefully most of them will receive the accommodation benefit. I’m just being cautious at setting the rentals.”

Small said the level would be 31 per cent with the cap at 33 per cent, giving a 2 per cent flexibility so staff would not have to come back to the council to ask for a change in policy.

“Bearing in mind that council will still approve on an annual basis the fee structure for pensioner housing.”

Councillor Sharon Wards said that reserves were pretty low.

“This looks good on a table for an annual year but does this reflect the catch-up stuff we have to do?

“Has there been some sort of buffer built into this proposal to get us back on track?”

It was acknowledged that it was a “bit tight” and there was the option to revisit in another year.

Since July last year there had been a lot of catch-up maintenance and going forward it would be in a more planned manner, with the team setting priorities.

Councillor Scott Gilmore said he took no pleasure in increasing rents in this area, but the “perverse outcome” was that other people in the district who were also struggling might have to pay more and higher rates to cover any shortfall.

Mayor Tracey Collis said it was a tough conversation to have “but I agree that it needed to be had”.

She encouraged anyone who was struggling with the rents to talk to someone so they could look at what supplements were available.