Hauraki’s pensioner housing rents will increase by $18 per week from August in order to keep up with “ever-increasing” operational costs.
The district council’s 57 elderly persons housing units were developed in Paeroa, Waihī and Ngatea between 1960 and 1985.
At its meeting on May 31, council voted to increase the rent for a studio unit or bedsit from $180 to $198, and from $187 to $205 for a one-bedroom unit.
Historically, council’s view has been to not increase rents by more than $6 a week per year in order to maintain affordability for residents.
However, with inflation at 7.2 per cent at the time of the meeting, and with an increase in material and labour costs, elected members were told that there were now “significantly higher costs” involved in maintaining and renovating units in line with best practice standards for elderly accommodation.
Work and Income does have financial aid provisions to support people on low income, including older people, staff said.
The amount paid is dependent on what other benefits and supplements tenants already receive.
Hauraki District Council also decided to lobby central government to permit council to get the same funding that Charitable Housing Trusts do.
The funding allows affordable housing providers to charge market related rentals. The rent increase comes into effect in August.
