The Southland Times

Council’s 35pc rent rise to be staggered

- Logan Savory logan.savory@stuff.co.nz

The Invercargi­ll City Council will stagger a 35 per cent rent increase over two years to help soften the blow for its residentia­l tenants.

The council is also urging its tenants to look into the Government’s accommodat­ion supplement, saying many of the tenants believed they were not eligible for it when in fact they were.

The council contacted tenants in its 215 council-owned flats before Christmas advising them of a 35 per cent rent increase. The increase would help with meeting new Healthy Homes standards.

However, the increase was met with concern from the tenants – who are elderly, disabled, or both.

At a council infrastruc­ture committee meeting yesterday, council staff presented a report recommendi­ng the council stick with the initial plan for the 35 per cent increase.

The report included two other potential options. One was to spread the increase across two years, which it said would slow the replacemen­t of units by two years over a 63-year period.

The second alternativ­e option was to reduce the increase to 28 per cent over one year, with the reduced income to be funded by a 0.1 per cent rates increase for ratepayers, which is about $59,000 overall in year one.

During the submission­s phase, tenants told councillor­s they were not entitled to an accommodat­ion supplement to help cover the rent increase.

Deputy mayor Nobby Clark said he did some investigat­ing and found they

would in fact be eligible for the accommodat­ion supplement. He asked senior council land adviser Heather Guise if that was right, and she agreed it was.

Clark said by spreading the increase over two years, and with help from the accommodat­ion supplement, the weekly increase could be limited to between $4 and $5 a week for tenants.

Councillor Darren Ludlow said the council’s current policy was that housing was not supported by the general rate. ‘‘So as soon as you start to subsidise the housing rental with the general rate, you are asking somebody who is potentiall­y in a similar position [as the tenants] to support it as well.’’

Councillor Alex Crackett said feedback from the community suggested the council should provide social housing, but they did not want to subsidise it.

Councillor Nigel Skelt said if viewed as a business model, increasing rents by 35 per cent straight away was the right move. But the council needed to look after its people, which was why he supported staggering the increase.

‘‘We are very comfortabl­e building a CBD and we are very comfortabl­e about our bricks and mortar, but I remind you all we need to look after our people.’’

Councillor Marcus Lush said he was in favour of the council providing warm housing. He was disappoint­ed with the process regarding the rent increase.

‘‘As a landlord, we need to look like we care about our tenants. To propose a 35 per cent [rent] increase weeks before Christmas I think was not the measure of a good landlord, so that concerns me,’’ Lush said.

Councillor Ian Pottinger said the rent increase was economical­ly justified.

However, he was not comfortabl­e with the 35 per cent increase straight up.

When it came to voting, councillor Lesley Soper proposed the recommenda­tion be changed to option two, which would see the increase staggered. It was voted unanimousl­y in favour.

After the meeting, council tenant Alister Webb said he was pleased the increase would be staggered.

He felt a meeting now needed to be organised to help talk the tenants through the available accommodat­ion supplement and how to access it.

 ??  ?? The Invercargi­ll City Council will stagger the rent increase for its flats over two years.
The Invercargi­ll City Council will stagger the rent increase for its flats over two years.
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