Moteliers are being urged to reinvest their emergency housing earnings to make Fenton St look better.
The head of Rotorua's motel sector is calling for moteliers making good money from emergency housing to reinvest in their properties to clean up Fenton St and help prepare the city for the return of visitors.
Rotorua Motel Association chairman Mike Gallagher said some motel owners were currently making good money from emergency housing and he'd like to see some reinvestment in the businesses.
He also called for a better approach to emergency housing from the Ministry of Social Development where they insisted on certain standards from clientele, and to put some of the funds towards security.
But the Ministry of Social development said they expected the motels to provide the same standard of service they did for all visitors and if problems arose, they took their clients elsewhere.
The latest Ministry of Housing and Urban Development quarterly report showed millions was still being spent on emergency housing and special needs grants in Rotorua - with ministry spending in the city far outstripping any other Bay of Plenty area.
In Rotorua, nearly $4.7 million of taxpayers' money was spent on emergency housing and special needs grants in Rotorua in the three months to the end of September. In Tauranga, it cost $2.6m for three months.
Gallagher said it was clear people needed roofs over their heads and there was a nationwide lack of rentals because of less construction and tightening of rules for landlords.
"A lot of landlords are too scared to put tenants in their homes now when they can earn the same or more from four or five months during the holiday period."
He said the motel scenario for housing the homeless was not ideal but there were few other solutions right now. But he said the emergency housing rules needed to be tightened to work better for everyone, including communities.
"Things can be done better and better parameters should be put in place to ensure motels set a better standard."
He called for those motels making good money from emergency housing to reinvest in their properties to ensure standards were maintained.
"Keep the lawns mowed, do the grounds up, do the fences, paint the buildings. There is no reason they should not be keeping the upkeep of their properties up. This is an opportunity to spend money on your properties."
Gallagher said while he understood there were "challenges" with some of the motels' clientele, now was the time to prepare themselves for when emergency housing in motels ended.
"I think this will be around a while yet but how can we as a community have this operation working better.
"My biggest concern is Fenton St is not looking the best and some motels have had the opportunity to reinvest."
Rotorua mayor Steve Chadwick said she agreed the motel properties should be kept well maintained and tidy, regardless of the occupants.
"The fact they are being used for emergency accommodation doesn't mean they should be allowed to deteriorate – I think that's irresponsible and it drags down our city.
"The potential for operators to see emergency housing as a 'cash cow' is certainly a concern and I would prefer motels were purchased and re-purposed by relevant government agencies if they are needed to provide emergency accommodation. That would ensure all such accommodation was well run, with suitably qualified people in charge and providing all the right services and support that are required."
Moteliers spoken to by the Rotorua Daily Post said the money they were making from emergency housing was simply paying the bills.
One manager, who didn't want to be named, said she had a mix of emergency housing clients and out-of-town visitors staying at her motel on Fenton St and she said the emergency housing clients just provided assurance they could stay afloat.
Another on Fenton St, who also didn't want to be named, said she "kicked out" all the emergency housing clients when New Zealand moved to alert level 3.
"They were taking drugs and dealing drugs. I said no more and kicked them all out. We don't just open our business for money we have to think about our neighbours and the school nearby."
She said they were only taking visitors and despite being the week of Christmas, they were not booked out - which was financially difficult.
"Some of the ones staying in my neighbours' motels are really bad, shopping trolleys everywhere, bad language, rubbish throwing."
Geneva Motor Lodge owner Edith Yan said she took emergency housing clients as well as visitors but said she asked people who behaved badly to leave immediately.
"I think my motel is good. I can have emergency housing but only if they are good. If not I will not let them say."
Ministry of Social Development housing general manager Karen Hocking said they expected their clients to get the same quality of service as any other guest and those who supplied emergency housing met all the relevant standards.
"When concerns are raised about the quality of accommodation, regional managers follow up with the supplier."
She said regional managers worked with suppliers to resolve issues around quality and if those issues could not be sorted, they looked for other accommodation.
"We see our emergency housing clients regularly to talk with them about their accommodation options. When concerns come to our attention, we raise them directly with the supplier to address."
Rotorua MP Todd McClay said there were stories of extremely antisocial behaviour and significant damage to some motels with residents in Glenholme "bearing the brunt of this".
"Mike Gallagher makes sense and the solution is for the Government to stop putting people in motel at up to $1800 a week and actually build houses, not just talk about them."
Labour List MP from Rotorua Tāmati Coffey said motel accommodation was just a short-term solution and during the pandemic response provided an ability for families to self-isolate.
"Long-term housing has to be Rotorua's ultimate goal and I am working hard to support the ministers of this Government to make this change happen for our people.
"Due to the rapidly evolving nature of the housing crisis we inherited, processes in this space are consistently being strengthened to ensure they do right by all parties involved.
He said the fact that Kāinga Ora had recently finished building 67 homes in Rotorua - constructed between July 2019 and now with a plan to build a further 80 by July 1, 2022 - made him proud.
"Alongside other local iwi and community-led housing partnership initiatives in this city, Rotorua is taking every opportunity to move our whānau in need out of motels and into their own secure shelter as soon as possible."
The Government has no concerns about the development on state land in Ngongotahā.