Seven-year hitch: Rates aren’t paid since 2013

A Howick homeowner who could lose his property in a forced-sale application by Auckland Council hasn’t paid rates in seven years.

The former builder who is now on the dole says he’s unable to pay the large rates bill, which he estimates could now total about $25,000.

He has labelled the council’s attempt to take his home “ruthless” and is vowing to stay.

But the council said he had ignored repeated requests to pay up. He began to get into arrears 11 years ago and had failed to make a rates payment since 2013.

“Unfortunately, our attempts over the past decade to engage with this particular ratepayer and work with him on a solution have been unsuccessful — this includes multiple attempts at writing to him and visiting the property,” acting group financial officer Kevin Ramsay said.

“We never take legal action lightly and a forced rating sale is our absolute last resort . . .”

The Herald revealed yesterday the council had gone to court to force the home’s sale. If the council is successful, the man would become just the second super city homeowner to lose his property in a rating sale.

The council has refused to provide information on the case, citing privacy concerns, but the Herald can reveal details after being granted access to court documents. The documents say the man owed $14,000 in rates and disbursements. Ramsay won’t say what is owed now, only that “the sum involved in this action is considerably higher”.

“Finding the money to pay rates can be stressful . . . which is why we try to work with ratepayers early on to help find solutions, including having a number of measures in place to help Aucklanders facing hardship.”

Though the council is hiking rates after a $750 million revenue hit from Covid-19 and Auckland’s water crisis, Ramsay said it had set aside an extra $50m in its emergency budget to support those needing rates relief.

Ramsay said in rare cases involving legal action, ratepayers could sign up to a rates postponement agreement or payment plan to avoid losing a home. This man had not done so.

“Our preference is always for people who are struggling to pay their rates to speak to us so that we can come to an agreement that allows them to stay in their homes. We do, however, need to be fair to all ratepayers, and must balance nonpayment of rates with the hundreds of thousands of Aucklanders who meet their legal obligations ...

“Our door remains open to resolve this issue quickly and amicably.”