Affordable apartments for capital
A push for affordable apartments in inner-city Wellington may soon include six more buildings.
New Zealand’s second largest landlord, Wellington City Council, will lease floor space from private building owners to provide a hoped 350 rent-controlled apartments for 1000 people.
Councillors voted unanimously to cement the public-private model, touted as a first for the country, in a closed-door meeting yesterday. Owners of six CBD buildings have expressed interest in the model, and councillors agreed to consider each proposal.
Proposed locations include 38 apartments on Boulcott St, a newbuild of 140 apartments on Vivian St, another 139 apartments on Willis St, as well as Victoria and Featherston streets.
Mayor Justin Lester said the council wanted to create a secondary rental market.
‘‘The market’s broken and it’s not working, and I haven’t found anybody that disagrees with that fact. There aren’t enough rental accommodation units ... and they’re certainly not at the price point that suits everybody.’’
He said costs associated with tenancies would be covered by the rent. ‘‘All of the risk sits with the landlord, but they get a really solid tenant. They get the council, guaranteeing them 15 years of occupancy without having to worry about it themselves, without the management costs, and we look after the repairs and management of those individual units.’’
Private building owners will sign 15-year leases for building spaces at a 5 per cent discount of market rate. The council will rent the apartments, starting at market rate and increasing rents only according to the consumer price index for 15 years – not increasing with the market rate.
Rents for one to three-bedroom apartments will be between $400 and $700. Sought tenants will be working households who don’t qualify for an income-related rent subsidy and cannot afford to live in the area.
Councillor Brian Dawson, who holds the housing portfolio, said it was a substantial commitment for the council. ‘‘We all know that it’s a massive priority for Wellington, and we’ve got some opportunities in front of us to make a genuine difference.’’
An initial Willis St building, owned by The Wellington Company, is under agreement and conversion of 35 apartments is due to be completed in late 2019.
It has ‘‘ringfenced’’ three buildings – half of the six the council will consider – to be part of the scheme. Wellington Company property developer Alex Cassels said the buildings should house 500 people.