$21.4m boost for affordable rentals in Bay of Plenty including 26 for Katikati elderly

A Government grant of just over $6.5 million will help the Western Bay of Plenty Council more than double its elder housing stocks in Katikati.

Elderly with “very limited financial means” will be among those expected to benefit from $21.4 million in housing grants for the Bay of Plenty.

On Monday, Housing Minister Megan Woods announced 64 affordable rental homes would be built in the region.

Grants from the Government’s affordable housing fund will pay for the 64 homes, 26 of which will be built in Katikati, north of Tauranga.

They were among 174 homes to be built across New Zealand.

The grants included just over $6.5m to the Western Bay of Plenty District Council to develop a 26-unit elder housing block at 13–17 Heron Cres.

Council chief executive John Holyoake said the council would own the development.

“These homes are allocated specifically for elderly people on the pension with very limited financial means,” Holyoake told the Bay of Plenty Times.

“Rent is set so as not to exceed 35 per cent of the net weekly rate of New Zealand superannuation.”

Holyoake said in a statement the development would have a mix of one and two-bedroom units that would also cater for those with mobility issues. There would be no cost to ratepayers.

The development replaces 11 40-year-old units that have been removed from the site, and adds 15 more.

“We have listened to our community about their needs and sought to get funding from central government to get more housing built in the area, and look after our elderly,” Holyoake said.

The 26-home development will be on Heron Cres in Katikati.

“Affordable housing for older people is a key area of concern in our district — need is increasing, and supply is very limited.

“At the moment Katikati’s housing stock of mostly three- and four-bedroom homes doesn’t fit the needs of our older population who typically want to downsize.”

According to the council, the site at Heron Cres was “build-ready” and foundational site works including retaining walls and fencing were completed.

Western Bay councillor Anne Henry said without the grant, the 26-unit build “would not have happened”.

“We’re extremely grateful.”

Henry said the grant meant the council would be able to provide accommodation for people who had contributed to the district.

“It’s our responsibility to look after those who have provided for us.”

Western Bay of Plenty District councillor Anne Henry. Photo / Alex Cairns

In Rotorua, Home in Place NZ Limited received the largest funding boost of the announcement, with $11.2m to develop 28 affordable rental homes.

These would be part of one development and owned by Home in Place NZ, a social housing landlord with multiple government contracts that has been operating in the country since 2016.

Home in Place NZ chief executive Christopher Trypas said Rotorua was “specifically” chosen because of its “unbelievably tight” rental market.

He said that when his team was doing its business proposal there were six properties available to rent in the entire town listed on one major rental website.

“It demonstrated the unbelievable need in Rotorua for affordable long-term rentals.”

Trypas said Home in Place NZ aimed to deliver the dwellings next year. While he did not want to disclose the location of the development yet, Trypas said it would be within two kilometres of the Rotorua town centre. It would also need infrastructure such as roading and pipes.

“It is a greenfield, from-scratch development,” Trypas said.

“The properties will all be three-bedroom, two-bathroom terrace homes.”

Home in Place NZ Limited chief executive Christopher Trypas. Photo / Dan Scott

Trypas said once the homes were built, Home in Place NZ would advertise them like any rental.

“The only difference will be that when you apply for the property there will be an income and needs-based eligibility assessment that’s undertaken.”

Trypas said the properties would be for moderate-income earners and would be available at 80 per cent of the market rental value.

The development is Home in Place NZ’s first purchase of property stock in New Zealand.

The Housing Minister’s announcement also included $3.6m for Tauhara North Kāinga Limited to develop 10 affordable rental homes for whānau Māori.

Woods said the partnerships with Western Bay of Plenty District Council, Home in Place NZ and Tauhara North Kāinga Limited were “critical” to addressing the needs of New Zealanders struggling to meet the cost of a market rental.

Tauhara North Kāinga Limited were contacted for comment.

Maryana Garcia is a regional reporter writing for the Rotorua Daily Post and the Bay of Plenty Times. She covers local issues, health and crime.