Tenants in Clutha District Council housing units could face a $5 weekly rent rise, to help pay for a major heating and modernisation overhaul of the flats, according to a report to be debated this week.
Each of the 98 units in the district is set to get a heat pump, and those properties needing the most urgent work will get it done soon.
A detailed report on exactly what improvements will be made, and how the work will be funded, will be debated by the council's district assets committee on Thursday.
The report was prompted by concerns at the very cold conditions being endured by many tenants living in poorly insulated flats.
Consultants priced the cost of the improvements needed at nearly $3.5 million.
This week's report makes four key recommendations. .
One which will directly affect all tenants is for a rent increase of $5 a week for each unit.
It also recommends spending $593,000 on the first stage of urgent work with more than half that money ($332,000) to go towards improvements at the Naish Courts and Toshvale units in Balclutha.
The money for those repairs will come from dipping into $180,000 of reserves, with the remaining $413,000 to be funded through a 15-year loan.
The rent rises are to cover loan repayments.
The report also recommends removing the differential on rentals, meaning tenants can apply for government subsidies to help cover any shortfall.
This means those with extra income or assets may receive less financial help - as much as $18 a week - to pay their rent.
Priorities for work include new roofing, spouting and insulation at the Naish Courts flats, while exterior painting will be done at the Toshvale and Lawrence units.
Fifteen units in the district will get new electric ranges, and every unit will get a heat pump.
In the report's executive summary, Opus consultants say the need for this kind of housing is likely to increase.
Housing affordability, an ageing population, high student debt and acceptance of individuals living alone will mean high demand for single-bedroom housing, it said.
