Rent rise likely for Clutha tenants

Tenants in Clutha District Council-owned housing units will find out late this month what heating improvements might be made to their flats and also what, if any, rent rises could be on the cards to pay for the work.

The council has begun surveying tenants living in the 98 units scattered across the district as it builds up a picture of what can be done to alleviate polar-like conditions in the flats and how the improvements will be funded.

Rent increases appear likely but many tenants could yet pay little extra, depending on their incomes.

The council is talking to Work and Income New Zealand about the possibility of some lower-income tenants getting accommodation supplements, which could offset almost all of any rent hikes.

Council district assets manager Jules Witt said, when contacted, some groups of tenants had already been asked about what they would like to see done to improve the warmth of their units.

Tenants in the Argyle St block of flats in Balclutha had been surveyed and all other tenants around the district were to be quizzed over the next two weeks.

"We are still working through the process and looking at all the options."

A report on the issue is being prepared for the council's district assets committee meeting on August 28.

Mr Witt said the item would include a breakdown of all the costings and the impact on individual rents.

He hoped a full report on tenant feedback would also be done by then.

A report which investigated what needed to be done to make the units warmer suggests the full price tag could be as high as $3.5 million, which equates to an average of $36,000 per unit, but the actual cost varies from about $11,000 up to $50,000 per unit.

Maintenance of the units has been funded from rental income and carried out as needed.

But because of the extent of the work, rent rises were likely, and the council would need to raise a loan to carry out the improvements.

 

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