RENT INCREASE: HAURAKI MAYOR AND COUNCILLORS TO VISIT TENANTS AMID NEW PROPOSAL
Tenants facing rent increases in Hauraki District Council-owned residential properties will soon get a visit from district councillors and Mayor Toby Adams.
The visit would be an opportunity to discuss the proposed increase of $10 a week, in person.
The changes would affect nearly 60 council-owned properties.
Hauraki District Council announced the home visits after a meeting last week where a report recommended the $10 increase.
A council spokeswoman said the rent increase would not come into effect until councillors and the mayor “had a chance to visit each tenant to discuss the change”.
“Care and concern is always a big driver for how we engage with our community and when things are reported too early, it causes undue stress,” the spokeswoman said.
In the report tabled at the meeting, council property manager Kim Donnelly said the rent increase was required due to the rising cost of repairs and maintenance required to maintain the current condition of the 57 units.
The elderly persons housing units were developed in Paeroa, Waihī and Ngatea between 1960 and 1985.
Building condition grading had shown the units were in a well-maintained condition. An operational maintenance and renewal programme was in place, Donnelly said.
Current rental rates were set at $198 for a studio unit or bedsit and $205 for a one-bedroom unit, a week.
Work and Income subsidies covered up to a maximum of $80 a week for eligible tenants, while in reality, Winz had subsidised tenants with an average of $52 a week, Donelly said in the report.
The last rental increase, of $18 a unit, was approved in May 2023.
Donelly said that increase did not fully address the shortfall and the 2023/24 financial year saw a $61,000 deficit in net operating costs.
As it was a financially ring-fenced funded activity, the operational, maintenance and renewal costs could only be funded from rental income.
Donelly said the continuing cost of living crisis would have an impact on current and future tenants’ ability to pay an increased rental.
Three options had been presented to the council for consideration: Retain the status quo; increase weekly rent by $10, or increase weekly rent by $21.
The preferred option of a $10 rent increase would see tenants burdened with a further $40 a month and did not fully address the annual shortfall of $62,200.