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Home / Waikato News

Waikato District Council invites input on plan to sell pensioner units

Waikato Herald
23 Apr, 2021 11:11 PM3 mins to read

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The district council says it does not have funds to provide additional 'wrap-around' services for elderly tenants, such as home help, meals and social services. Photo / File

The district council says it does not have funds to provide additional 'wrap-around' services for elderly tenants, such as home help, meals and social services. Photo / File

Waikato District Council wants to sell its 34 pensioner homes in Ngaruawahia, Huntly and Tuakau, with the proviso that the houses continue to be used as social housing.

The council wants to know if the community agrees with the proposal which is part of its Long Term Plan which is open for feedback until May 7.

The council is proposing to change the way it delivers pensioner housing by inviting social housing providers to buy the units. It believes that is a better option than council continuing to be the landlord.

Waikato District Council owns and manages a housing for the elderly portfolio of 34 units in Ngaruawahia, Huntly and Tuakau. The council only acts as a landlord and does not provide other services, such as home help, meals or other direct social support.

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Tenants in council's pensioner units currently pay 67 per cent of the market rental rate. In the 2019/20 financial year, the council received $338,800 in income from rent from these units. In 2019/20 it cost $388,170 to provide the service.

Waikato District Council mayor Allan Sanson. Photo / Waikato District Council
Waikato District Council mayor Allan Sanson. Photo / Waikato District Council

"We have the best interests of our tenants at heart, and we have been talking to them about this issue over the last year," Waikato district mayor Allan Sanson says. "Community housing providers are professionals. Meeting the needs of our older people is a core part of what they do.

"These providers - and others - have told us our current approach is likely not meeting the needs of those who most need subsidised housing in our district. We don't have capacity or the funds to provide additional 'wrap-around' services for tenants, such as home help, meals and social services. This disadvantages some tenants who may need these services.

"Other social housing providers often provide these services. Charitable trusts, church organisations, iwi and not-for-profits have provided social housing for many years and have worked with a wide range of people. They are specialists in this area and are better equipped to provide wrap-around services than we are," he says.

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There are also significant financial challenges facing the council if was to retain its pensioner housing portfolio. Over the next 10 years $1.82 million is required to maintain the properties.

This includes replacement of roofs and gutters, fencing, carpark resealing and plumbing. A total of $850,000 is required to make necessary upgrades to the properties to meet acceptable standards suitable for older people (such as installing low entry showers and extractor fans).

To operate the pensioner housing service in a "cost neutral" way, rents will need to be significantly increased to cover the cost of running the service.

Waikato District Council wants to know if ratepayers agree with its preferred option - to sell the pensioner housing.

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The Long Term Plan is reviewed and updated every three years. It also asks what general rate increase option ratepayers prefer and if council should continue its annual inorganic kerbside rubbish collection service.

Council is also asking for feedback on the way it hands out funding, what it charges in terms of user fees and charges, its development contributions policy and a community hall catchment review.

The issues council is facing are outlined in a consultation document, which is available from all council offices and libraries and by phoning 0800 492 452, otherwise check out www.waikatodistrict.govt.nz/ltp for more information and have your say.

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