Rent-rise D-day for pensioner tenants

Invercargill pensioners concerned about proposed rent increases on council flats are about to find out if the hike will go ahead as planned.

The council’s infrastructural services committee meets tomorrow, and the housing rental fees consultation is on the agenda.

In February, pensioners made submissions to the council about the proposal, and the majority said they could not afford a big increase of up to 35 per cent.

Twenty-five submissions came in: 15 opposed the increase, 10 supported it, and nine tenants left comments with the housing officer.

The council in November 2020 had flagged an increase to allow it to improve the council flats.

Options the councillors will consider tomorrow include:

❚ Option 1: Going ahead with the original proposed rent increase of 35 per cent from July 1, 2021. This would allow the council to complete two new units and replace 3.5 units per year. The improvements will be fully funded from rental income.

❚ Option 2: Opt for a two years or more staged approach. This would spread out the 35 per cent increase. But for the council it would result in the replacement programme slowing down.

Option 3: Drop the proposed increase to 28 per cent with reduced income being subsidised through a 0.1 per cent rates increase.

Recommendations in the report, that councillors will consider, include adopting option 1 which means the increase will go ahead, and confirms that the council wants to retain ownership of the social housing units, and it intends to fund this service via user-pays and not via general rates.

Tomorrow’s committee meeting starts at 3pm.