The Canterbury Earthquake Recovery Authority is on the brink of being taken to court in a bid to save elderly rest-home residents from financial ruin.
Avonview Retirement Village owner Grant Buchanan says he will file for a High Court judicial review today if Cera does not acknowledge its residents are entitled to the red zone package for their properties.
Mr Buchanan has been fighting for his 34 tenants for five months.
He has written to Cera asking residents be paid market value for their property.
Alternatively, he would like compensation for Avonview, on the banks of the Avon River, Dallington, in order to pay out residents.
But Cera says that, unlike other property owners in the red zone, the residents do not qualify for government payouts based on the September 2007 rateable value.
Cera chief executive Roger Sutton said, "Current legislation doesn't allow Cera to deal directly with people, who own licences to occupy, in commercial rest-homes in the red zone, as it can do with independent homeowners in neighbouring areas.
"However, the issue is currently being worked though by the policy and legal teams within Cera, and Cera is also working with the Retirement Villages Association to find the best solution."
Dorothy (80) and Lindsay (83) Ayers will lose their life savings when they have to leave their $330,000 villa. They are among six tenants remaining at Avonview.
But because they are in the red zone, they will eventually have to vacate the property by law, at this stage without any compensation.
Son Andy Ayers said his parents were devastated and on the verge of giving up.
"They're rapidly losing hope.
Last week, when they got the letter from the owners of the village, Dad said to me, 'I don't think I'm ever going to see my new home'," Mr Ayers said.
"These people literally cannot wait any longer without urgent intervention by Cera, who are not listening."
Mr Buchanan said the village should be entitled to the government offer because it met the criteria of being residential buildings, on residential land, in the red zone and insured with EQC.
