File photo of Wellington city.
Photo: 123rf
The council is the country s largest provider of council housing, managing nearly 2000 units with over 3000 residents, but management of the housing is far more expensive than what the council makes through rent.
Meanwhile, the capital programme over the next 10 years - which would make the units comply with Healthy Homes standards - was estimated to be just shy of $450m.
In a meeting today, councillors agreed the mayor would write to the minister of housing and the minister of finance to request access to the Income Related Rent Subsidy.
The subsidy is a rent top-up for public housing tenants (in homes run by Community Housing Providers or Kāinga Ora), but is not available for council housing tenants.
Plans for Wellington s $400m social housing shortfall delayed until after Budget Day
11 May, 2021 05:00 PM
4 minutes to read
City Housing will be insolvent by June 2023 if nothing changes. Photo / Mark Mitchell
Wellington issues reporter, NZ Heraldgeorgina.campbell@nzme.co.nz
Wellington City Council has delayed publicising options to plug its social housing arm s $400 million shortfall until after the Government has announced Budget 2021.
City Housing, which has 1927 properties and 3500 tenants, is forecast to be insolvent by June 2023.
The council is discussing options with the Government including immediate access to the Income Related Rent Subsidy (IRRS) scheme, establishing a community housing provider, and funding capital costs through the Crown s Infrastructure Funding and Financing tool.
A Capital Letter: Wellington council social housing arm will be insolvent by 2023
27 Apr, 2021 05:00 PM
5 minutes to read
Wellington City. Photo / Mark Mitchell
OPINION:
Senior Wellington journalist Georgina Campbell s fortnightly column looks closely at issues in the capital. Wellington City Council s social housing arm will be insolvent by June 2023 if nothing changes- a reality that calls into question whether the council should be a provider at all.
The council has 1927 properties across the city, housing about 3500 tenants. It is one of the largest social housing providers in New Zealand and it s in trouble.
City Housing s annual operating deficit is forecast to be $8.7 million in the first year of the council s draft Long Term Plan and is set to increase further over the ensuing decade.