The Dunedin City Council decided last year to carry on with redevelopment at a site in Fitzroy St, South Dunedin, but to pause other plans amid rising building costs.
However, expenditure on the Fitzroy St project to replace four units is now forecast to be $406,000 underspent, reflecting savings arising during procurement.
Otago Housing Alliance leader Aaron Hawkins said it was good news about Fitzroy St, but this raised questions about information the council relied upon when other development plans were canned.
‘‘It remains one of the most disappointing decisions of recent times, to look around at the acute housing need in our community and decide that we’ve done enough as a city to help,’’ he said.
Mr Hawkins is a former Dunedin mayor and he is standing in the city council’s upcoming by-election.
‘‘Council have another development ready to go in Oxford St,’’ he said.
‘‘The site has been cleared and the new build consented.’’
Given what had been learned about Fitzroy St, the costings for Oxford St should be looked at ‘‘and the decision to can it revisited’’, he said.
Mr Hawkins said there were other ways the council could help.
‘‘A review of underutilised, residentially zoned council land still hasn’t seen the light of day,’’ he said.
‘‘That could be a great opportunity to partner with community housing providers to increase the supply of affordable housing.’’
Mr Hawkins was mayor in 2021 when, on the back of emphatic public support, the council decided to include $20 million of new capital and another $22.6m for renewal in the 10-year plan to build more community housing and redevelop and maintain housing stock.
A report for the council in January last year said escalating building costs meant the community housing development programme needed to be reconsidered.
Councillors decided to press on at Fitzroy St only.
