Affordability and sustainability for elderly housing

The council is asking the community for feedback on how rents are set for its Housing for the Elderly units. Four possible approaches are being considered, with a focus on keeping rents affordable while ensuring the homes remain financially sustainable.

The council owns 144 Housing for the Elderly units across the Far North and some of them need major repairs before they can be lived in. For more than 15 years, rent increases have only matched inflation (CPI), meaning rental income has not kept up with the costs to run and maintain the units.

Under the current rent setting, general rates currently contribute around $230,000 a year to cover the gap between what tenants pay and what it costs to run the units. This amount has varied over the years and goes towards insurance, grounds care, day-to-day repairs, contractor costs and rates.

Recently, staff met face to face with many elderly tenants living in these homes. The visits were an opportunity to explain why a rent review is needed, answer pātai, and provide space for one-on-one conversations on how rents are set before asking the wider community for feedback.

The four options being proposed are:

• Continue CPI-linked increases.
• Link rent to NZ Superannuation, setting it as a percentage of the super rate.
• Adjust rent annually to match operating costs.
• Set rent as a percentage of current market rates for similar units but keeping it below private rentals.

All options include a tiered rent structure, meaning costs could vary by size, location of the unit, and whether it is home to one person or a couple.

It is important to note that several vacant units require considerable investment to bring them up to a healthy and compliant standard. Years of underinvestment have left some homes untenantable. This consultation does not address the funding needed to repair these units; however, the council is working with its commercial arm, Far North Holdings Ltd, to better access central government funding. Councils cannot access central government funding without legislative change.

Read more and give your feedback here. Consultation closes on 28 September 2025.

Please note: Social media comments are not counted as formal feedback. It is very important to fill in the online survey, so your views are included.