The Mackenzie District Council has shied away from substantial increases in rentals across the board for tenants in its elderly housing units.
Yesterday, councillors adopted a two-pronged approach to increasing rentals to reduce the yearly $19,240 subsidy paid by ratepayers to maintain and operate the 10 units in Twizel and Fairlie.
A report to the council's meeting recommended implementing a policy, approved in 2005, to lift elderly housing rentals to 80% of market value. This could have meant increases of up to $45 a week for some tenants.
However, after considering the report, the council decided to continue with a staged increase in rentals for tenants who had been in the unit in 2005, or prior to that date.
Since 2005, tenants have paid higher rentals and these will continue to increase by $5 on July 1 of every year.
For those who had moved in since 2005, it was recommended that single-unit rentals increase from $80 a week to $95. This was approved by the council.
Single persons in a double unit pay $96 in Fairlie and $109.90 in Twizel, and it was recommended these both increase to $110 a week.
However, the council yesterday set the new rental for both at $108 a week.
The weekly rental for a couple in a double unit was $112 in Fairlie and $132 in Twizel, with the recommended rental for both $125 a week. However, the council yesterday set the new rental for both at $120 a week.
Tenants can qualify for a weekly $16 accommodation supplement from the Government through Work and Income New Zealand. To qualify, single tenants must have a rental of more than $71 a week and cash assets of less than $8100.
For couples the requirements are a weekly rental of more than $110 a week and cash assets less than $16,200.
