Housing upgrade halted

Last updated 23:28 02/12/2008

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All non-essential maintenance on Christchurch social housing has been suspended in what tenants fear is retaliation for successfully challenging a 24 per cent rent rise.

The maintenance was suspended by the Christchurch City Council this week in response to losing a High Court challenge to its controversial rent rise.

Christchurch Mayor Bob Parker said yesterday that council staff were assessing funding after last week's High Court decision.

"The council has stopped all maintenance, barring essential maintenance, on its social housing units," he said. "This is as a result of the High Court ruling on the council's rental increase.

"The council's social housing is self-funding and is not able to draw on ratepayer funding. This means that all maintenance must be funded from rental income.

"Work already under way will be completed, but no new work will be started in the meantime. This is so council staff can do a reassessment of funds available for social housing maintenance."

The completion of maintenance work depended on the amount of work already done, Parker said.

But one tenant, who did not want to be named, said yesterday that his unit had been left half-painted.

"The painters have just pulled out. They have been pulled off the job and left it half-painted," he said.

Another tenant was distressed that workers refurbishing her home had suddenly been pulled off the job.

"It is terrible. We feel guilty, even though we should not. I think it is retaliation because we have kicked up about about the large rise in our rents," she said.

The overturning of the rent rise could mean the council will have to refund $1 million in extra rent collected since July. The rent rise was introduced to set aside about $34m to fund maintenance spending increases on social housing in 2015.

The maintenance move has sparked outrage among social housing advocates.

Tenants Protection Association Christchurch manager Helen Gatonyi said the suspension was "unbelievable".

"It is outrageous. You have to wonder how the tenants are feeling, especially ones that were excited about finally having their flats done up."

The Council of Social Services (Coss) won the High Court appeal against the rent rise.

Coss executive officer Sharon Torstonson said the move was surprising."It is a rather extreme reaction." She said the council was legally bound by the Residential Tenancies Act to maintain housing to a reasonable state of repair.

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7 comments

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Phil Millar #7 05:26 pm Jan 28 2009

City housing Is Not in any way FUNDED BY THE RATEPAYERS of Christchurch and never HAS BEEN.It has always paid its own way and Last financial year made a profit of 4.1 million dollars.the sooner some of the ratepayer get this into there heads the better off everyone concerned, the better.Bob Parker is feeding off these incorrect and negative reports to gain an end to a means.What the ratepayers should take to account is where did the dollars come from to buy the Ellerslie Flower show and open up the financial books to show where it came from,i think there would suddenly be a change of heart on the one term elect new Mayor.

Lorraine #6 05:26 pm Jan 28 2009

I suggest you read the article that you are responding to.

"The rent rise was introduced to set aside about $34m to fund maintenance spending increases on social housing in 2015."

So, CCC if the money wasn't to be used until 2015 - how is it that after having lost the Court case - you have suddenly run out of money for renovations?

As for the Mayor and his cronies - do what Wellington C.C did - put a proposal to Government for funding. I believe MP Jim Anderton was working on such a proposal when the CCC rushed in with the rent rise.

Judith #5 05:26 pm Jan 28 2009

This is nonsense. Council Housing is self funded which means the money that is collected in rents is put back into maintenance and upgrades on housing. If tenants dont want to pay what is already a subsidised rental then the housing standard will deteriorate and number of units will decrease. The Mayor in putting forward a rental increase has the long term interest of the tenants in mind. If you rob the pot now there will be nothing left for others. Has nothing at all to do with Jade stadium or any other rate paying activity. It is SELF funded. If you dont want it DONT pay for it, move out, but dont grizzle when its no longer available in 2015.

Sam Yau #4 05:26 pm Jan 28 2009

I am very disappointed with the behavior of all of those councillors and Mayor who made a decision to stop the upgrade of the council houses. If they can find $17M of the rate payers money to help a failed developer and why can't the council find $17M to upgrade the council houses? All of them (Mayor and councillors) only have 3 years contract from us. They are our servants. We don't employ them to bully our elderly and Christchurch residents who needed help most.

Jonne #3 05:26 pm Jan 28 2009

Stop moaning, you get what you pay for. Helen Gatonyi said it is outrages! If the Council carried on refurbishing all the Council Flats where does she think the money is going to come from - Ratepayers? If there is limited income then that means limited funds to do the refurbishing. I am sure the housing is maintained to a reasonable state of repair.

In reply to Robin, why does he think the safety of children at school crossings is a Council responsibility? It is the responsibility of the people who are driving the car's on the roads, and no one else.

robin freeman #2 05:26 pm Jan 28 2009

The mayor needs social housing money to be transferred and be used for upgrade of jade[ami] stadium. The protection and health of the poor and elderly is no longer a priority for the council and is now at the same level of care as the safety of our children at school crossings.

Stan #1 05:26 pm Jan 28 2009

It may be sad but it is not unbelievable. The money to refurbish homes has to come from somewhere and it it is not ratepayer funded then there is no money. These are hard times and you nhave to have a budget. I would like to do my home up but am in the same position unless I get a pay rise. Council is the same. You cannot have a bob each way.

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