Some elderly council tenants will soon be notified of a rent increase, as part of an annual review. 

The Central Otago District Council own 98 ‘Elderly Persons Housing’ units throughout the district with the cheapest at $70 per week in Ranfurly, ranging to the most expensive in Cromwell at $270 per week.

Of the 26 units in Alexandra and Clyde, eight units will have no rent increase, eight have a $5.00 per week increase and 10 will have a $10.00 per week increase. All 31 Cromwell units will have a rent increase, 19 of $5.00 per week and the other 12 units of $10.00 per week.

All but two of Roxburgh’s 15 units will have a rent increase of $5.00 per week and over in Ranfurly, 10 units will receive a $5.00 per week increase while payments for the remaining 16 units will remain the same.

The council had looked into subsidising rents in the past but found that “substantial costs” would be placed on ratepayers. Reductions or subsidies would also have the

undesired effect of reducing any government payments to tenants through its Ministry of Social Development accommodation supplements. 

The last rent review was undertaken in May 2019 and new rents became effective on 1 September 2019, according to a council report. As part of the COVID-19 response

plan, government put a freeze on all rents for six months from 26 March to 25 June, 2020.

All the units have been double-glazed, had heat-pumps and are now compliant with the Healthy Homes standards. Occupancy rates at the time of the rent review was high -

within 94% - 96%.

The council aimed to keep rentals to below 30% of a single person or couple’s income but it was not always possible to track and record this information.  

The new rates will apply from July 1 and tenants would all be notified by the end of this month, councillors were told yesterday.