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A Christchurch social housing provider has accepted a Tenancy Tribunal decision that found it overcharged a tenant.

But the O¯ tautahi Community Housing Trust (OCHT) will not reduce the same market rent it charges for identical units at the same complex, meaning it is still charging some residents too much.

The trust will scrap its letter rating rent valuations. A, B and C ratings used to calculate the market rent are provided by the Christchurch City Council and have remain unchanged since 2016.

In August, OCHT was found to have set the rent for Maurice Carter Courts residents Tracy Collyer and Kere Cookson-Ua $125 a week more than it should have. It was ordered to reduce the rent and pay the Spreydon couple back but challenged the findings.

The couple originally received an income-related rent subsidy (IRRS) from the Ministry of Social Development (MSD) but it lapsed as they began working more hours as part of Cookson-Ua’s stroke recovery.

They ended up paying $300 rent weekly – the full market rate. OCHT’s handbook said the most they should pay was 70 per cent of the market value (OCHT has since removed this paragraph, claiming misinterpretation). The couple took the matter to the Tenancy Tribunal, which ruled they should pay $175 – 70 per cent of the latest market rate of $250.

The nation’s social housing regulator, the Community Housing Regulatory Authority (CHRA), then investigated OCHT and found several problems with its policies.

Because its recommendations were released before the tribunal rehearing date, OCHT withdrew its appeal, chief executive Cate Kearney said.

‘‘OCHT does not agree with the Tenancy Tribunal’s findings in this case, however we accept their decision,’’ she said.

The trust would not comment on whether the tenants would be repaid for what they were overcharged, citing privacy. It has asked the tenants not to speak publicly about the outcome.

Last month, The Press revealed there were 11 other units in the complex with the same market value and where tenants received an IRRS.

OCHT would not reduce the rent at the remaining units, despite it being the same as what Collyer and Cookson-Ua were previously charged.

Kearney said IRRS tenants paid about 25 per cent of their income on rent, so individual tenants were ‘‘unlikely to be disadvantaged’’ by the higher market rent.

But with MSD paying the remainder for each unit, the taxpayer is being overcharged. The exact figure remains unknown as privacy considerations prevent the ministry from disclosing its share, which will likely differ for each unit.

OCHT receives more than $73,000 in MSD funding each week. The money covers rent subsidies for its 480 IRRS tenants, and is based on valuations provided by OCHT.

The trust has used desktop valuations provided by Knight Frank, where 10 per cent of its stock is assessed and the remainder estimated.

Knight Frank provides market valuations for A+, A, B and C units, but does not stipulate how each grade should be met.

CHRA manager Fiona Fitzgerald said the trust’s use of Knight Frank’s report was ‘‘appropriate’’.

‘‘However, it was unclear how the categories of property used in the report – e.g. ‘A’, ‘B’, and ‘C’ properties – were being applied to properties in the trust’s portfolio.’’

Kearney said she believed the rent-setting policy was fair but the trust had changed it so each complex was now individually assessed.

It would also scrap the letter ratings, which had been determined by the Christchurch City Council before tenancy management transitioned to the trust.

Collyer said the trust had asked her not to speak publicly about its appeal withdrawal. In an emailed statement, she said the CHRA report ‘‘speaks for itself’’.

‘‘The trust is now required to develop appropriate policies and procedures it should have had in place since it began. This should bring the trust into line with other social housing providers and can only be good for tenants.’’

Christchurch City Councillor Yani Johanson said Collyer and CooksonUa had been ‘‘vindicated’’ by the withdrawal. He said he had previously tried, and failed, to get a list of the properties the trust managed and the market valuations for each.

‘‘It is important that the rents are reviewed to ensure that no one else is in a similar situation both now and in the future. I have been unable to get any information as how widespread this issue may be.’’