Mayor Sandra Hazlehurst has announced that seniors living in Hastings council housing will see their rents double from early next year. This will affect residents in 220 homes across nine senior housing complexes in Hastings, Havelock North, and Flaxmere. From the end of January, they will be required to pay $260 a week, a significant increase from the current rates of $117 for long-term tenants and $178.50 for those who moved in since July last year.
The council has stated that this increase is due to a housing review which found that the current rents were insufficient to maintain the service in the long term. The new policy is designed to ensure that senior housing is allocated based on need, remains affordable, and is financially sustainable for the benefit of residents, the council, and the wider community.
The council has also noted a significant increase in demand, with a current waiting list of 250 people, and rising costs such as insurance and maintenance.
Mayor Hazlehurst acknowledged that the rent increase and new policy were difficult decisions for the council. She expressed concern for the impact on older residents and stated that the council is working with the Ministry of Social Development to help residents access government-funded accommodation supplements to minimize personal effects.
Residents will be invited to attend information sessions with the council housing team to discuss the changes. The council expects that those on a basic superannuation income will be able to get a higher accommodation subsidy to help them meet the new rents. However, each case will be different depending on individual circumstances.
Since 2014, rent increases have been about two percent annually, except in 2020 when the government froze rent increases for six months due to the Covid-19 lockdown. The new policy also raises the age of eligibility for a council senior housing unit from 55 years or older to 65 years or older, aligning with other councils.