The public will be consulted on the idea early next year. Councillor Josh Chandulal-Mackay told the council’s strategy and policy committee the partnership would provide capital and a building programme the council could not deliver on its own.
However, affordable rentals had to be part of any negotiations with potential partners. “We’ve got challenges in our older persons housing portfolio as well, around maintenance requirements on those units,” he said. “When we go through this process publicly, we need to give our tenants in pensioner housing a guarantee they have certainty of tenancy during that time. “That is fundamental.”
Speaking to the Chronicle, council chief executive David Langford said the new entity was a separate piece of work to the council’s efforts to address homelessness. Multiple cars and tents remain at the Anzac Parade freedom camping site.
The Whanganui People’s Centre, in partnership with the council, is working to find people accommodation and connect them with government agencies.
“There will be a consultation process and engagement with potential partners, including our iwi partners, and that will play out in due course,” Langford said. “At this stage, all things are possible”.
There were 279 people on the Ministry of Social Development’s housing register in September, down from 318 in the same month last year. The council will undertake an RFP (request for proposal) process to identify a suitable partner.
Committee chairwoman Kate Joblin told the Chronicle housing providers in Queenstown (Queenstown Lakes Community Housing Trust), Christchurch (Ōtautahi Community Housing Trust) and Wellington (Te Toi Mahana) had been studied during the process.
A partner would put in capital and possibly expertise and they would be looking for a return on their investment, she said.
Joblin told the committee work had been slow but needed to be because “this is a big deal”.
”If we want to pull this off we need to be very methodical, thoughtful and deliberate about what we do,” she said. “It’s really important our community comes along with us and is well-informed.”
A report from council community wellbeing manager Lauren Tamehana said a new entity could register as a Community Housing Provider (CHP) to access revenue benefits or leverage the partner’s CHP registration.
A CHP is eligible for the Income-Related Rent Subsidy (IRRS) through the Ministry of Housing and Urban Development (HUD). It covers the balance between what a public housing tenant pays in rent and the market rent for the property. HUD’s Operating Supplement – funding to build more public housing places – can also be accessed by a CHP.
Tamehana’s report said there was potential for other councils to be included in the model “to provide economies of scale and development opportunity”.
It said the public would be asked three key questions: Does the council establish a new entity with a partner? Does the entity register as a community housing provider? What council assets – if any – should be put into it? A full business case on the entity will be revealed at a council meeting in February.
Mike Tweed is a multimedia journalist at the Whanganui Chronicle. Since starting in March 2020, he has dabbled in everything from sport to music. At present his focus is local government, primarily the Whanganui District Council.