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To be eligible for NCC housing, you must meet certain asset and income criteria.
To put forward an application, please download an information pack here.
If you'd like to know more about our homes, please call our Customer Service Centre on +64 6 835 7579.
Napier City Council started providing community housing over 50 years ago when, like many other councils, we received low cost government loans to build housing units. Of the 377 units we now have, 80% are for retirees or people with a disability. Our housing units are now up to 60 years old and costing more and more to maintain. Significant work is required in the near future to address deferred maintenance issues.
We have assessed every part of every unit and have anticipated the repair, maintenance and replacement for the next 25 years. The money we receive in rent does not cover the costs of the housing anymore and over the next 25 years we have projected an average annualised shortfall of $2.2million. This year, we will borrow to cover any shortfall, but we can’t keep borrowing to cover shortfalls year on year.
We have reviewed our Council housing provision options and consulted with the public on their preference between the three options below:
There were a number of considerations made in the decision-making process including the community feedback received, Napier’s housing situation, the government reforms underway, and the effect this decision would have on current tenants.
The decision was made to keep all of our housing and to fund the forecasted annual shortfalls through a combination of increased rents and increased rates. The decision was made that 80% of the costs would be funded through rents (tenants) and 20% of the costs would be funded through rates (ratepayers).
This option sees Council continuing to own all 377 housing units operate the housing service. Changes in the Residential Tenancy Act have meant the complexity of providing tenancy management services has increased. Should Council retain the service, additional staff resourcing is required.
This option generates an average annual deficit of $2.2 million which would reach $70 million after 25 years (2046). To cover this shortfall, an increase to rates or and increase to rent, or a combination of a rates and rent increase is required. The impacts to rates and rents are shown on the bar below. We have provided two examples of a rates/rent split – if Council selects the split option, the actual split would be based on the benefit and impacts to each party.
The current rent setting formula will have to be changed from 30% of tenant’s income to a percentage of market rent. Because this could be a significant increase for some tenants, the increase could be phased in over a number of years. Until the full increase is applied, the shortfall could be funded through loans, as outlined in Council’s Long Term Plan 2021-31.
This option retains 300 retirement units in 8 villages. It proposes to transfer (sell) the three social villages to another entity within the social housing sector. The sale proceeds would be put towards the cost of developing 49 new units. The new development would take place on existing sites.
The four units at the Hastings/Munroe village would be demolished and 11 new units would be built. Current tenants would be rehoused. The 11 new units would be rented at full market rent. The second site, Greenmeadows East would see the development of 38 new units.
This option loses 76 houses and builds 49 new units.
This option generates an average annual deficit of $2.3 million and without any rates or increased rent adjustments the shortfall would reach $65.9 million after 25 years (2046). To cover this shortfall, an increase to rates or and increase to rent, or a combination of a rates and rent increase is required. The impacts to rates and rents are shown on the bar below. We have provided two examples of a rates/rent split – if Council selects the split option, the actual split would be based on the benefit and impacts to each party.
The current rent setting formula will have to be changed from 30% of tenant’s income to a percentage of market rent. Because this could be a significant increase for some tenants, the increase could be phased in over a number of years. Until the full increase is applied, the shortfall could be funded through loans, as outlined in Council’s Long Term Plan 2021-31.
This option would see all 377 units transferred (sold) to another entity within the social housing sector.
Council wants the housing to remain as affordable rental housing. The protection of tenants and the special character of the retirement villages is important and therefore any transfer contract would need to contain the following conditions:
Because of this, a sale through the open market is not being considered.
The opportunities for redevelopment of the two villages we have identified and the potential to demolish and intensify other sites allow for additionality (adding more housing) which could allow Community Housing Providers to access government funding and is a key focus for Kāinga Ora. There may be an option to vest (give) the housing to a new regional or local housing trust should one be formed by council(s). Such a trust could become a Community Housing Provider and would operate entirely independently of council(s). This option would not result in any sale proceeds.
No particular ‘buyer’ has been identified as this would be subject to a sale process.
This option allows the housing to remain as affordable housing and in ‘community ownership’, noting that the majority of CHPs are charitable trusts.
Advantages of this option are mainly financial for both tenants and Council (ratepayers). CHPs provide wrap around support services in addition to tenancy management and are able to apply the IRRS discount rent rate (rent set at 25% of income) to new eligible tenants. Under a transfer to Kāinga Ora, all eligible tenants (existing and new) would be able to access the subsidised rent. Should the conditions be put in place, there would be no negative impact on current tenants. A full transfer would remove all liabilities (costs and deficits). Sale proceeds received (noting that transfer to a council formed regional or local housing trust would not provide any sale proceeds) would be available for any of the following, in consultation with the community:
All of the above have a positive impact for the ratepayer.
+64 6 835 7579
215 Hastings Street Napier 4110
Private Bag 6010 Napier 4142
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