From July, rent on Waitaki District Council-owned community housing units will rise by $2 a week for rentals under $89 a week and by $4 a week for rentals over $89.
The council owns 89 units for community housing, and the rise would ensure that community housing rates rise from 24% to 25% (of gross superannuation benefit), to meet the target projected in the long-term plan.
But North Otago Grey Power president Rose Gallagher said the hike would ''more or less'' take away the $10 increase to gross superannuation benefit in April.
'' I know we're in hard times, but I don't really feel that those flats warrant having an increase in their rent. If you have good tenants, you look after them, don't you?''It's not good for the elderly people. No elderly person needs a rent increase, not with winter round the corner, anyway.
''They have still got to keep warm in winter, and a lot of people don't like to put people out by saying they are in difficulties and that's the sad part with the older generation is that they don't like to rock the boat and they will just go along and pay it.''
However, council corporate services manager Carolyn Carter said the effect on most tenants would be lessened by the Work and Income subsidy available to those paying more than $89 a week in rent.
Ms Carter said the $4 rent increase would result in tenants paying a net increase of only $1.20.
However, last year the subsidy ''kicked in'' at $87, so tenants would also have to pay an extra $2, leaving the net increase to be $3.20.
''Last year, most residents were eligible for the Work and Income accommodation supplement.
''Eight tenants were ineligible for the subsidy and receive a discounted rent. It is intended that these tenants pay the net increase - that is $3.
''If they don't get a subsidy because they are in hardship, our officers have been given authority to look at discounting on the basis of hardship.''
The full rent increase would be passed on only to people who were employed, she said.
