Tenant owes state $48,000
A state house tenant owing $48,000 in rent arrears remains in his house, having offered $150 a week to clear his debts.
The Upper Hutt man tops Ka¯inga Ora’s list of debtors as the agency’s total rent arrears have risen more than 800 per cent lately to $21 million.
Nick Maling, Ka¯inga Ora national services general manager, said the $21m figure was the most it had ever been owed and indicated people’s difficulties in meeting financial burdens in tougher economic times.
“This figure reflects the unprecedented challenges New Zealanders have faced in recent years and ongoing pressures [from] the cost of living,” Maling said.
Stuff reported that state tenants owed $2.32m by September 2019, so the increase to $21m amounts to 805 per cent. Debts jumped to $17m by September 2022.
The revelations come as former Prime Minister Bill English heads an inquiry into Ka¯inga Ora and Housing Minister Chris Bishop said on Thursday that 3906 public homes, or
5 per cent of the public housing stock, were vacant as of October 31.
More than 25,000 people are on the social housing waitlist.
Bishop expressed concern about the $21m debt, happening while Labour was either in power or coalition since 2019.
“This was caused by the previous Labour Government’s cost of living crisis which made things much harder for people trying to pay their rent.
“[Its] reckless spending worsened inflation, prolonging the cost of living crisis and the financial pressure felt by many Kiwis including Ka¯inga Ora tenants. I have asked for policy advice from officials about solving the rent arrears problem,” Bishop said.
New Zealand has about 72,000 state homes and about 200,000 tenants living in those homes.
Maling said two-thirds of those owing the $21m rent arrears were actively making debt payments as well as paying weekly rent.
The Trentham man who incurred the $48,000 debt had acknowledged to the Tenancy Tribunal that he owed that amount and offered the $150 weekly repayments.
Maling said: “The largest amount a customer was behind on their rent was $48,040. This customer is being charged market rent for their home because they have not met the Ministry of Social Development [MSD] requirements to receive an incomerelated rent subsidy.”
The man, who has a job, according to advocate Teresa Homan, remains in the house because Ka¯inga Ora has not sought to terminate his tenancy.
The agency forwarded a November 22 ruling in which the Tenancy Tribunal said Tama Thomas Jacobs owed Ka¯inga Ora $45,100 at that date. The amount had climbed to $48,040 by the end of December.
“The tenant accepts the arrears as things stand, but he is in the process of seeking a review of his incomerelated rent,” the decision said. “Depending on the review’s outcome, the arrears amount could change.”
Maling said tenants received a rent subsidy, meaning many paid at most
25 per cent of their income in rent. Some were charged market rents if the agency did not get the information it needed. “In situations like this, where market rents are charged and payments are missed, rent arrears can quickly accumulate.”
Homan told the tribunal both she and Jacobs had been having difficulties with Ka¯inga Ora.
Though full details of Jacobs’ income had been provided, the agency denied receiving it, she said.
The agency also sought confirmation of his previous job at a marae, but the marae had not provided that.
Ka¯inga Ora was willing to work with Jacobs and Homan to try to get matters resolved without the need for more action against him, the tribunal said. “The current rent is $749 per week and so the tenant will be relying on a successful MSD review if this tenancy is to be viable,” the ruling said.
Ka¯inga Ora said it could not provide any details to talk to Jacobs. Attempts by the Herald to contact him via Homan were unsuccessful.
Property Investors Federation vice-president Peter Lewis was not surprised by the $21m record rent arrears. “It’s obviously a huge figure and, as a taxpayer, it’s annoying to me. But would you have people sleeping in the gutters instead?”