Christchurch City Council to consider rents increase for its tenants

2 April 2003

Christchurch City Council is about to consider increasing the rents charged to its tenants.

City Housing rents have not been increased since 1997, although the Council regularly reviews its housing rents to ensure that housing remains at the lowest possible cost to tenants while remaining affordable for the Council.

Councillor Carole Anderton, chair of the City Housing subcommittee, says that a review of rents shows an increase is needed to make sure the Council’s housing portfolio continues to be self-financing and can operate without ratepayer funds.

“ Although rental levels for City Housing flats have been reviewed on a number of occasions, they have not been increased since 1997,” Cr Anderton says. “Since then, though, the costs of running the housing portfolio have increased significantly, as have market rents.

“ We are, of course, very conscious of the effect that any rental increase may have on our tenants’ pockets. They can be assured that the Council will be thinking about this when it considers the proposals. ”

“ If the Council does endorse the proposed changes, the rents charged to our tenants will still be significantly cheaper than market rates, at around 70 per cent.”

If the Council endorses the recommendation of City Housing, tenants would receive at least 60 days notice of such an increase, which would be effective from July.

The proposals will be considered this month by the Council’s Community and Leisure Committee (7 April, from midday) and the full Council (24 April, from 2pm). The proposal to be considered is outlined in the Community and Leisure Committee agenda, which will shortly be available on the web, at www.ccc.govt.nz/council/Agendas/

Background

• More than 2600 tenants live in low-cost Council housing in Christchurch. These range from studios/bedsits to four-bedroom units. There are 110 housing complexes located all around the city.
• The City Council’s rental accommodation operates under the name City Housing. It is run as a separate entity within the Council’s Property Unit. It is self-funding and does not require ratepayers ’ funds.
• The City Council has built up a social housing portfolio second in size only to that of Housing New Zealand Corporation.

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