Homeowners in fear after whole stage of Whangārei development sold to Kāinga Ora

Homeowners in the Tiaki Rise subdivision say they face anti-social behaviour and were threatened by a gang associate, after the final stage was sold to Kāinga Ora for social housing. Photo / Denise Piper

Homeowners who bought in a Whangārei housing development say their dreams have been shattered by anti-social behaviour after a whole stage of the subdivision was sold to Kāinga Ora for social housing.

But builder Barrett Homes says the project provides much-needed homes in the area, and people are still keen to buy in the development.

Tiaki Rise in Tikipunga is a 122-house development led by EB Developments, a company owned by Tauranga-based building company Barrett Group. The majority of the houses are being built by Barrett Homes.

In March 2023, Kāinga Ora announced it was spending just over $26 million to buy 35 new homes in stage four of the Tiaki Rise development.

Twenty-four of the new homes have now been built and tenanted, with the final 11 homes due in December.

For homeowners Tina and Adam Davis, whose Tiaki Rise home is on the edge of stage four, the social housing cluster has left them feeling locked in their home.

One neighbour with gang affiliations constantly wore a balaclava and, on one day, threatened Tina he would burn their house down.

That neighbour has since been moved on by Kāinga Ora but the fear remains for the couple in their 50s, as does problems with loud music, loud vehicles and cars parked all over the street, they say.

The situation is amplified because Adam suffers from a rare disorder, a neurological condition called baroreceptor reflex failure, which means he has such extremes in blood pressure he can barely stand without fainting.

“When Tina was threatened I saw red. I staggered out with a cane, got pretty defensive and nearly passed out,” he said.

The incurable condition developed when Adam underwent treatment for throat cancer, which he was diagnosed with in 2017. While his cancer is gone, the condition has left him unable to work.

The new home was meant to be a quiet neighbourhood for their early retirement, but all of that was “destroyed” with the Kāinga Ora development, Adam said.

“We didn’t see ourselves out on the street battling gang members,” he said. “It’s added an extreme level of stress.”

Kāinga Ora signed a deal with Barrett Homes in November 2022, to buy 35 new homes in the Tiaki Rise subdivision. Photo / Michael Cunningham

Tina and Adam said before they signed an agreement to buy in October 2021, they asked about the future of the subdivision and any potential social housing.

They were told there could be a few Kāinga Ora houses dotted around the neighbourhood.

It was not until a week before they moved into their house, in April 2023, they were told about stage four being sold to Kāinga Ora.

Adam said he has no problem with most social housing tenants but he disagrees with the way the Kāinga Ora houses are clustered together, rather than being spread throughout the development.

“I grew up in poverty - I’ve been homeless and desperate, and I would never stop someone having a home, but it’s nonsensical to choose to group all these houses together because you’re increasing the chance of there being problems.”

Tina said had the couple known about the Kāinga Ora development, they would not have bought their house. They now cannot afford to sell, after being told by a real estate agent their home is worth $100,000 less than what they paid.

Adam and Tina allege changes to the covenants between the early stages and their own stage meant Barrett Homes had been planning to sell to Kāinga Ora earlier than it let on.

Homes and sites in the Tiaki Rise subdivision continue to sell, although house prices are down across the country, says Barrett Homes. Photo / Denise Piper

Another Tiaki Rise homeowner, who asked to remain anonymous, also felt Barrett Homes went back on its assurances it would not sell out to Kāinga Ora.

The homeowner signed up in 2022 and was told homes would not be social housing. She believed that changed when the housing market slowed and the developer had to consider all options.

The woman said crime has increased in the area, including a flatmate’s car being stolen outside their house.

Her home’s value has also dropped, with real estate agents admitting buyers are concerned about the social housing, she said.

Homes about providing for need, Barrett Homes says

Barrett Homes said it did not know Kāinga Ora would buy the homes until the deal was done. However, it has no regrets about the partnership, which is providing good-quality homes in an area where there is a shortage.

Maree Melton, Barrett Homes national hub general manager, said Whangārei needs an extra 20,100 homes by 2051, according to Te Rautaki Whare o Whangārei, Whangārei District Housing Strategy.

“Our communities face a shortage of housing both to buy and to rent. We are proud to be building good quality homes as one small part of solving that very large problem.”

Melton said there is still demand for Tiaki Rise, with sites moving quickly and just two lots remaining in the 122-lot development.

“Kāinga Ora buying stage four was not planned. We were approached. But we understand the huge need for social housing and we are proud of the outcome,” she said.

“Barrett Homes would definitely work with Kāinga Ora again. We have a good working relationship with Kāinga Ora, they do a difficult job well, and they have been professional to deal with.”

Melton said the value of individual houses across the country has fallen since 2021, related to economic factors that is part of the cyclic nature of house prices.

“It appears a causal link is being made that cannot be substantiated.”

Majority of Tiaki Rise tenants settling in well, Kāinga Ora says

Her sentiments are reflected by Jeff Murray, Kāinga Ora’s Northland regional director, who said there are 642 whānau waiting for social housing in Whangārei alone.

Kāinga Ora already owned 240 homes in Tikipunga when it signed the agreement with Barrett Homes in November 2022, he said.

The Tiaki Rise subdivision was chosen not only to increase social housing but because it allowed existing tenants to remain in the suburb while older houses were upgraded, he said.

Murray said there are many reasons behind the decreased property values, with research showing location, affordability, school zoning and property condition have the most influence on values.

Kāinga Ora had unfortunately received complaints about disruptive behaviour from a couple of tenants. One has been relocated and other noise-related complaints are being investigated, he said.

“At Kāinga Ora, our job is to provide our customers with a stable home for as long as they need it. In return, we expect them to be good tenants and neighbours.

“For the most part our customers in Tiaki Rise have settled in well to their new homes.”

Murray said if people are experiencing any issues with their Kāinga Ora neighbours, they should get in contact immediately and provide as much detail as possible, so appropriate action can be taken.

Denise Piper is a news reporter for the Northern Advocate, focusing on health and business. She has more than 20 years in journalism and is passionate about covering stories that make a difference.