Council progresses plan to transfer Far North pensioner housing

Far North District Council is seeking suitable housing providers to take over its 12 pensioner housing villages, in a move that aims to provide more affordable rents, improved services and wraparound support for tenants.

The decision follows a council resolution on 22 October to pursue a gradual, property-by-property transfer of its Housing for the Elderly portfolio, which comprises 144 homes, rather than transferring the entire portfolio at once.

The council began investigating divestment in 2021 after identifying its pensioner housing model as unsustainable, with rising costs to ratepayers and around $15 million in renewal work required.

The preferred approach is for several suitable registered housing providers to take over the properties and continue delivering affordable pensioner housing in the Far North.

Delivery and Operations general manager Hilary Sumpter said the scale of investment required, and the current model of ratepayer-subsidised rents, made transferring the entire portfolio to a single provider unlikely.

“The council was never intended to be a pensioner housing provider and unlike registered housing providers, we cannot access central government housing funding,” Sumpter said.

“Like many other councils, we need a more sustainable solution. Transferring these homes to housing providers could unlock investment through new operators, improve services and support more affordable rents for tenants.

“We know changes involving people's homes can be unsettling. Our priority is to retain as many existing tenancy arrangements as possible and support tenants throughout the process.

“For now, no action is required from tenants and existing tenancy arrangements remain unchanged.”

The proposed divestment will take place in two stages, with different requirements applying to properties across the 12 pensioner housing villages.

The first stage involves identifying interested housing providers and seeking public feedback through the 2027–2037 Long-Term Plan consultation on whether existing conditions that restrict the transfer of some properties should be removed.

These restrictions were put in place by the council to protect current tenants and ensure the number of homes and level of service are maintained or improved over time.

However, they also make it harder to transfer some properties to housing providers.

Six of the 12 villages are also subject to legal requirements under the Public Works Act 1981 and other title restrictions, which must be addressed before any transfer can take place.

The affected properties are Birch Street (Rāwene), specified units at Oxford Street (Kaitāia), Hōreke Road (Hōreke), Tawanui Road (Kaikohe), Potter Street (Kohukohu) and Waimā Valley Road (Waimā).

For these properties, full divestment cannot proceed unless the council agrees to remove the existing conditions following public consultation and meets any applicable legal obligations.

Sumpter said the council will visit tenants to explain the proposed process and hear their concerns before decisions were made.

“While our preference is for these homes to remain available as pensioner housing, we need to be upfront that some properties may have different outcomes,” she said.

“Tenants, whānau and the community will have an opportunity to have their say before the council decides what happens next. An update on the consultation outcome will be provided in June 2027.”

The second stage, for properties subject to the existing conditions, can proceed only if the council agrees to remove those conditions following consultation.

The council must also meet its legal obligations under the Public Works Act 1981, including offering properties to former owners or their successors where required.

If those offers are declined, the properties can then be offered to interested housing providers.

As a last resort, some properties may need to be sold on the open market to complete divestment.

Sumpter confirmed that no housing provider has been selected and any future changes to rents, tenancy arrangements or services are yet to be determined.

The council aims to complete the transfer process by April 2028, although this timeframe may change depending on legal requirements and other circumstances.

The council will continue managing the properties until transfers are completed.

Tenants, whānau and community members with questions or concerns can contact the council on 0800 347 787.