A ''fairly modest increase'' in community housing rentals still caused some consternation about the effect it could have on some tenants when details about the rises were put before the Waitaki District Council's committee of the whole yesterday.
Council corporate services manager Carolyn Carter used that description of the increases, which are $2 a week for rentals under $89 a week and $4 a week for rentals over $89.
The council owns 89 units of community housing, and the rise will ensure that community housing rents rise from 24% to 25% (of the gross superannuation benefit), to meet the target projected in the long-term plan.
The $4 rent increase would result in tenants paying a net increase of only $1.20 after the subsidy, she said.
North Otago Grey Power president Rose Gallagher has questioned the effects of the increases, which she feels are not warranted even in
''tough economic times'', particularly on superannuitants in the units.
Some councillors yesterday had similar concerns, but were assured by Mrs Carter a Work and Income subsidy was available for some tenants, and those who did not qualify for that would be considered by the council for a discount.
Rent increases were needed to ensure the cost of maintaining and operating the units were not subsidised by ratepayers, a requirements of the council's community housing policy.
Cr Gus Young described the rentals as a ''win-win'' for both the council and tenants. Rents are about two thirds of market rentals.
Waitaki Mayor Alex Familton questioned whether the council, in giving discounts to tenants not covered by the Work and Income subsidy, was picking up a Government responsibility.
The increases have been approved by chief executive Michael Ross under authority delegated to him and based on the community housing policy.
