Napier City Council is considering selling all of its 377 council owned units because it is struggling to meet the costs of maintaining and upgrading them.
The council says raising the rent on the units to keep up with the work that's needed on the ageing homes is not an option. as it would defeat the propose of the affordable housing.
A recent review of the NCC's housing portfolio identified that the council couldn't continue to provide housing where costs were funded solely through rents.
The Napier City Council's People & Places Committee is now set to consider a resolution to publicly consult on Council's social housing provision options at its meeting next Thursday, 3 February.
There are three proposed options that the councils will be looking at:
- keep the units in 100% council ownership
- sell some of the housing units
- sell all of the units
Mayor Kirsten Wise said they are looking at selling as keeping them would be a significant burden on ratepayers.
"We're particularly concerned about the growing need for affordable rentals for superannuitants and the high demand for affordable housing in Napier.
"A significant rate increases year on year to fund the projected shortfalls could have a big impact on others in our community," Wise said.
As well as being concerned about the financial impact in keeping the houses will have on the community, NCC say they are also concerned about the welfare of their tenants.
Over 50 years ago the NCC introduced council housing for people who need affordable homes and can live independently.
Eighty per cent of the 377 of the Council-owned units are rented by retirees or people with a disability and tenants are supported through subsidised rents based on income.
Councils do not qualify for the Government's Income Related Rent Subsidy that other community housing providers receive, which further exacerbates affordability.
Wise said "tenant welfare is a very important consideration for us".
"We don't want our elderly and vulnerable living in sub-standard housing conditions.
"It's important that we look at our future options and consider very carefully what is best for our tenants, as well as considering the needs of our ratepayers.
"We have taken a deep dive into this issue to gain a clear picture of the current situation and identify our future options. We know this process has been unsettling for our tenants, and we are pleased to now be in a position to seek feedback from tenants and the wider community before a decision is made," Wise said.
If the council agrees to put it to consultation at next week's meeting, the consultation will open for four weeks from March 16.
