Council welcomes Government’s $220m housing support
Wednesday 28 February 2007, 12:00PM
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Wellington City Council last night welcomed a Government offer of $220 million over the next 10-15 years to upgrade the Council’s social housing portfolio.
Wellington Mayor Kerry Prendergast says the Council plays an important role in providing social housing and that the Government’s offer would help ensure that Council housing is safe, secure and modern.
“The Government’s offer will enable the Council to target key areas of building improvement such as building code compliance including seismic strengthening, improving insulation and ventilation as well as addressing issues around tenant safety and security. We will also be able to upgrade basic kitchen and bathroom amenities, enhance our existing community facilities, and importantly, reconfigure many of our bedsits into larger accommodation.â€Â
The Government’s offer requires the Council to stay in social housing for 30 years at current service levels, to ring-fence all rental-income from social housing for reinvestment in social housing and to give the Crown first right of refusal should the Council choose to sell any of its housing stock. The Council will also review its housing policy and practices in conjunction with the Housing New Zealand Corporation. If the Council breaks the terms and conditions within the 30-year timeframe the Council would be liable for penalty costs.
The Government’s offer will be open for public consultation in April as part of the Council’s Draft Annual Plan and if approved in June, during final deliberations, would be followed by development of a memorandum of understanding by June 2007. Construction work would most likely start in 2008-9.
Mayor Prendergast says the Council’s housing provides a valuable and much-needed service but that it is desperately in need of an upgrade. “The Council has an ageing social housing portfolio, much of it built in the 1960s and 1970s, that no longer meets the needs of our tenants. Although the Council has maintained the properties to a good standard, the reality is that they are coming to the end of their useful life and the cost of upgrading them is too large for the Council and ratepayers to carry alone.
“The size and range of the Council’s housing stock complements the nature of the social housing provided by central government in Wellington, which is why we approached the Government for assistance.â€Â
The Council’s Social Portfolio Leader, Councillor Stephanie Cook, says the Council wants to be able to provide safe, secure, affordable housing to people disadvantaged in the housing market. “The Government’s offer represents the best possible offer the Council could expect to receive. Acceptance of this offer will result over time in a modern environment and significantly improved quality of living for our tenants.â€Â
The Council currently houses around 4000 people in 2354, mainly one and two-bedroom, units.
Wellington Mayor Kerry Prendergast says the Council plays an important role in providing social housing and that the Government’s offer would help ensure that Council housing is safe, secure and modern.
“The Government’s offer will enable the Council to target key areas of building improvement such as building code compliance including seismic strengthening, improving insulation and ventilation as well as addressing issues around tenant safety and security. We will also be able to upgrade basic kitchen and bathroom amenities, enhance our existing community facilities, and importantly, reconfigure many of our bedsits into larger accommodation.â€Â
The Government’s offer requires the Council to stay in social housing for 30 years at current service levels, to ring-fence all rental-income from social housing for reinvestment in social housing and to give the Crown first right of refusal should the Council choose to sell any of its housing stock. The Council will also review its housing policy and practices in conjunction with the Housing New Zealand Corporation. If the Council breaks the terms and conditions within the 30-year timeframe the Council would be liable for penalty costs.
The Government’s offer will be open for public consultation in April as part of the Council’s Draft Annual Plan and if approved in June, during final deliberations, would be followed by development of a memorandum of understanding by June 2007. Construction work would most likely start in 2008-9.
Mayor Prendergast says the Council’s housing provides a valuable and much-needed service but that it is desperately in need of an upgrade. “The Council has an ageing social housing portfolio, much of it built in the 1960s and 1970s, that no longer meets the needs of our tenants. Although the Council has maintained the properties to a good standard, the reality is that they are coming to the end of their useful life and the cost of upgrading them is too large for the Council and ratepayers to carry alone.
“The size and range of the Council’s housing stock complements the nature of the social housing provided by central government in Wellington, which is why we approached the Government for assistance.â€Â
The Council’s Social Portfolio Leader, Councillor Stephanie Cook, says the Council wants to be able to provide safe, secure, affordable housing to people disadvantaged in the housing market. “The Government’s offer represents the best possible offer the Council could expect to receive. Acceptance of this offer will result over time in a modern environment and significantly improved quality of living for our tenants.â€Â
The Council currently houses around 4000 people in 2354, mainly one and two-bedroom, units.