The motels being exited from contracted emergency housing. Clockwise from top left, Midway Motel, Emerald Spa, Tuscany Villas, Malones Motel. Photos / Kelly Makiha
Rotorua residents say it’s time to “take back Fenton St” as Government contracts to house homeless people end for four more motels.
Seven more contracted motels throughout Rotorua will remain until the end of next year at the latest, but there are hopes three of those could bedropped earlier as the Government promises to prioritise their residents for new Kāinga Ora homes.
The motels being exited from emergency housing are all on Fenton St – Tuscany Villas, Emerald Spa, Midway Motel and Malones Motel.
Associate Housing Minister Tama Potaka said that next week the Ministry of Housing and Urban Development would apply for one-year resource consent extensions for seven contracted motels. It initially said it would apply for 10 motels for two years.
Contracted emergency housing motels are managed by social service agencies that provide security and wrap-around services for those staying there.
Tuscany Villas is a contracted motel but doesn’t have resource consent like the other motels. It was contracted under a different scheme to provide emergency housing to people following the Covid-19 response phase. That contract will end at the end of this year.
Visions of a Helping Hand, which manages Tuscany Villas and Emerald Spa, chief executive officer Tiny Deane said it was aware of the ministry’s plans relating to Tuscany Villas and Emerald Spa and was working with its clients alongside ministry staff to manage the change.
Potaka said in a statement it was anticipated there would be enough social houses built by the end of 2025 to end contracted emergency housing in Rotorua.
The Government expected to phase out another three motels by mid-2025, leaving four operating until the end of next year.
Potaka said the plan provided certainty for families needing housing as well as reassurance for locals the use of the motels was winding down quickly.
Prioritising locals in new houses
Rotorua MP Todd McClay said the Government was determined to get people out of motels and into stable houses and was committed to prioritising those in contracted emergency housing motels for new Kāinga Ora homes.
He said this was the first time locals had been assured priority, whereas in the past the “language” was around giving priority to those most in need and from the “region”.
“Locals will be given priority for new housing stock. It means that the many challenges our community have faced and the harm done to our reputation starts to be rebuilt today.
“This is an opportunity to claim back Fenton St and part of the Government’s commitment to end the use of emergency housing motels within two years of coming into office.”
Kāinga Ora estimates 350 social houses will be delivered in Rotorua by the end of 2025.
Potaka said through discussions with Kāinga Ora and the Ministry of Housing and Urban Development, it was anticipated about two-thirds of those homes, or 234 houses, would be made available to those in contracted emergency housing.
The number of motels used for emergency housing by the Ministry of Social Development has reduced from 35 motels in August 2022 to six in April this year.
The practice of mixed-use motels – those used for tourist and emergency housing – has stopped, according to Potaka’s statement.
Latest Government figures show a 62 per cent reduction in demand for emergency housing – from 588 households in December 2021 to 222 in April 2024.
The April figures show there are 306 adults and 345 children in all emergency housing motels in Rotorua (including 10 contracted motels, six non-contracted motels, Tuscany Villas and a transitional motel).
Locals react
Glenholme resident Carolyne Hall spoke out in April after being told of the ministry’s initial 10-motel extension plans, saying she felt “blindsided and betrayed” given the promises to end emergency housing within two years.
She called on McClay and Rotorua mayor Tania Tapsell, who had not been aware of the ministry’s intention, to take urgent action.
Hall told the Rotorua Daily Post this week the new plan was a win.
“We have won a battle, maybe not yet the war.”
She was proud of the Rotorua community’s effort to continue to fight.
“This is a community that stood up and said ‘we don’t want this for our town’. More credit should be given to this community including those who gave anonymously to pay for lawyers to help us say ‘no you’re not doing this to our community’.”
She was pleased with the four motels that would no longer be contracted.
Hall said she considered Emerald Spa and Tuscany Villas in particular were more up-market motels on Fenton St and it would be good to have them back to offer to visitors.
“I want us to take back Fenton St and make it the street it used to be and the vibe it used to have.”
Visions of a Helping Hand manages Tuscany Villas and Emerald Spa. Chief executive officer Tiny Deane said it was aware of the ministry’s plans and was working with its clients alongside ministry staff to manage the change.
Restore Rotorua chairman Trevor Newbrook said he was happy with the plan and was pleased there was a commitment to curtail sending people to Rotorua from other areas for emergency housing.
“All along we have been told it’s not happening but no one ever believed that.”
Mayor Tania Tapsell responds
Tapsell said the council had been notified by the ministry of its intention to apply for resource consent extensions for seven motels for a year.
“In its regulatory role, council has no choice but to process the consent applications.”
Tapsell said seeing motels used for emergency housing beyond their original consent expiry date in December was understandably disappointing but it was positive there was a plan to get down to four within the next 12 months.
She said the focus needed to be on solutions for building appropriate social, transitional and affordable housing strictly for Rotorua locals.
“Iwi partners, as significant land owners, continue to play an important role in leading local housing solutions and we’ll keep working towards these better outcomes together.”
Kelly Makiha is a senior journalist who has reported for the Rotorua Daily Post for more than 25 years, covering mainly police, court, human interest and social issues.
Correction and update
An earlier version of this story incorrectly said Visions of a Helping Hand manages Midway Motel. The story has been updated to add comments from Tiny Deane.