"Those who build the House are built by it"
—Maori Elder
2000 - A new millennium, a new Government, new Housing Policy, and "maybe" new energy, commitment and ideas in seeking solutions to housing problems, particularly for low-income New Zealanders. For solutions to be found it will require the co-operation of the State, private sector, NGO's, individuals and tenants.
In Christchurch we have "The Housing Forum".The members of this forum come from all players in the local housing sector. We hope that this forum will help identify and prioritise housing issues and create an environment where ideas and discussion will build co-
operation and trust between the different sectors, and seek innovative responses to housing need in Christchurch. We welcome the new Minister of Housing , Mark Gosche, and look forward to constructive dialogue with him in the future. This year, TPA will continue to lobby for the introduction of a certificate of fitness for rental housing, extension of the Residential Tenancies Act to boarding houses and flatmates, and will continue our education campaign to help tenants learn more about their rights and responsibilities to ensure safe and secure housing is available for all.
January 2000
The Newsletter of Tenants Protection Association (Christchurch) Inc.
Some Background ....
Previous Occupation: National Secretary-Service Workers Union
Work History:
Other Work:
Hon. Mark Gosche
Ph: 04 471 9586
email: jen.toogood@parliament.govt.nz
Fax:04 470 6787
Government Ministers and their Portfolios/Other Responsibilities associated with housing, tenancy tribunal issues, and other social services
| Portfolios | Other Responsibilities |
|---|---|
| Mark Gosche | |
| Minister of Housing (Includes responsibility for Housing New Zealand Ltd. and Housing Corporation) Minister of Pacific Island Affairs Minister of Transport | Civil Aviation |
| Steve Maharey | |
| Minister of Social Services and Employment | Community and Voluntary Sector Associate Minister of Education (Tertiary Education) |
| Hon. Annette King | |
| Minister of Health | Minister for Racing |
| Hon. Phil Goff | |
| Minister of Justice Minister of Foreign Affairs and Trade | |
| Dover Samuels | |
| Minister of Maori Affairs | Associate Minister of Fisheries Associate Minister of Tourism |
| Matt Robson | |
| Minister for Courts Minister of Corrections Minister for Disarmament and Arms Control | Associate Minister of Foreign Affairs and Trade (Official Development Assistance) |
| Laila Harre | |
| Minister of Youth Affairs Minister of Women's Affairs | Associate Minister of Labour Associate Minister of Commerce |
| MINISTERS OUTSIDE CABINET | |
| Tariana Turia | |
| Minister of State | Associate Minister of Housing Associate Minister of Health Associate Minister of Social Services and Employment (Social Services) Associate Minister of Maori Affairs (Social Development) Associate Minister of Corrections |
| Ruth Dyson | |
| Minister of State | Associate Minister of Social Services and Employment Associate Minister of Health Disability Issues Associate Minister for Accident Insurance |
The new Labour/Alliance coalition Government has promised to help reduce poverty in New Zealand with the introduction of income related rents on state houses within its first term. Both parties as well as the Greens have stated that they are committed to ensuring that low-income households will not have to pay more than 25% of their net income in rent for their state house. It is a certainty that rent reductions will go ahead ...how much rents will go down and how long it will take are not yet certain. Reactions from players in the housing sector have been mixed with many adopting a cautious "wait and see" attitude.
The New Zealand Real Estate Institute is predicting that the new Government's housing policies will not have as great an impact as factors such as immigration, interest rates and new family formation in driving the rental market. President Max Oliver says "The institute does not expect any dramatic impact on the overall residential market in terms of sales and medians, in fact over the short term we anticipate a level of greater buoyancy in residential property with the removal of the pre-election uncertainty that has recently dampened activity in the market." (Otago Daily Times, 13 December 1999).
The same article quotes ASB Bank economist Rosina Wozinak as saying that "there were some positive signs for the market. The vacancy rate for state sector houses was reportedly low and new houses could not be built overnight... it appears there is little scope for higher rents during the next few years, particularly in low income accommodation. However, the sharp falls in both house prices and rents that some commentators have been predicting are believed to have been exaggerated."
Two Massey University academics from the Finance, Banking and Property Department, Bob Hargreaves and Judith Hopkins, are not so guarded in their predictions. They say that setting state house rentals below market rents will greatly increase demand for state houses. The new Government's housing policies will encourage families to live in camping grounds and double up in houses or increase family size to accumulate enough points to better their chances of moving to the top of growing waiting lists for state houses. They say that reduced state rentals may carry over into the private sector and landlords may decide to sell their rental properties or reduce spending on property maintenance.
These claims are considered to be overstated by Charles Waldegrave, a social policy researcher with the Lower Hutt Family Centre. He says the housing policies of the new Government will, unlike the previous Government, make transparent those people in need of housing. He asserts that from 1938 to 1992 the private rental market existed right alongside the public rental market.
Local Christchurch Labour MP, Tim Barnett, is hopeful that the rent reduction for state houses will begin by April 2000. He says tenants will be served better by the new Government because it is "recommitted to being a housing provider".More properties will be built, there will be a wider variety of housing provision and tenants will have a greater stability of tenure. He says "hopefully rents will come down for those renting in the private sector with the introduction of rent reductions for state houses". Mr. Barnett says there is concern over loose monitoring of rental housing standards and the new Government is committed to ensuring quality of rental housing and will investigate options including a "certificate of fitness" for rental housing.
Tenants' Protection Association Auckland acknowledges that it may take time to dismantle the market rents policy of the previous government. They have put forward a proposal for a "good tenant rent rebate" to the new Minister of Housing, Mark Gosche, to put in place by February 2000 as a sign of goodwill. The rent rebate would equal one weeks' rent for Housing New Zealand tenants who have rented for the past year and not gotten behind in rent or damaged the property. More details on this proposal can be found in the article Tenants' Group calls for Rent Holiday on page 6 in this issue of Housing News. Alan Johnson from TPA Auckland says "low-income tenants are not in a position to wait indefinately until the new Government sorts out its priorities ....TPA (Auckland) will be organising widespread tenant protests in February 2000 to push the issue if the Government does not respond quickly to this very modest proposal".
TPA (Christchurch) welcomes the new government and looks forward to the implementation of other promises made during the election campaign such as the scrapping of application fees for the Tenancy Tribunal which has adversely affected some tenants, and to the extension of the Residential Tenancies Act to include boarding situations and flatmates. Tenants' Group Calls for Rent Holiday
The Tenants' Protection Association (TPA) Auckland is calling for Housing New Zealand Ltd. to provide its good tenants with a one week's rent rebate in February 2000.
In October 1999 TPA (Auckland) offered a proposal for a "good tenant rent rebate" to Housing New Zealand Chief Executive Brian Roche. This proposal suggested that each year, good long term HNZ tenants should be offered a one week's rent rebate in recognition of their loyalty as good HNZ customers. The rent rebate proposal suggests that tenants who have rented from HNZ for the last year and have not fallen behind in their rent or damaged their property should be offered a one week's rent rebate as a type of "valued customer" reward.
"Customer loyalty programmes are offered in retailing and other areas of business and it makes sense that it should also be offered by New Zealand's biggest landlord" said TPA (Auckland) representative Alan Johnson.
The rent rebate proposal involves HNZ providing good tenants with a cash refund of one week's rent during February 2000.
"A rent rebate at this time would not only provide real proof of this Govemment's goodwill towards tenants, but also makes sound social sense" says Mr. Johnson. "Many budgeting agencies and food banks say that apart from Christmas, the most stressful time of year for low-income families is February, when children go back to school and families face the additional expenses of the so-called free education system" he said "it makes sense both financially and socially to provide many of these families with a well deserved and well appreciated bonus through a rent rebate in February".
"This proposal for a rent rebate was offered to HNZ management before the election as a tangible way
of addressing the problem of expensive so-called "market rents" under the previous Government" said Mr. Johnson. "This proposal has also been offered to the new Minister of Housing Mark Gosdie and to date no response or acknowledgement has been received" he claimed.
"Most housing activists accept that it may take time to dismantle the previous National Government's market rents policy" said Mr. Johnson. "The proposal for a rent rebate during February 2000 is at least a start for some public sector tenants and one which the incoming Minister can answer before Christmas", he said.
Mr. Johnson claims "That low-income tenants are not in a position to wait indefinitely until the new Government sorts out its priorities". He says that the change of Government has brought with it an expectation of major changes in housing policy. Mr. Johnson suggests that'TPA (Auckland) will be organising widespread tenant protests in February 2000 to push the issue if the Government does not respond quickly to this very modest proposal".
-From Tenants' Protection Association Auckland
In 1996 the Christchurch City Council undertook a review of its involvement in housing which confirmed the need for the Council to continue to be a provider of affordable housing. Four priority areas in the city were identified:
Gloucester Courts, after a controversial planning/building process with considerable community backlash, is now almost completely tenanted. The Beckenham Project is going out for building tenders and Cecil Place is at the development proposal stage. The Hornby Stage 1 Project is expected to be going out to building tender in May or June next year.
The Christchurch City Council commissioned Auckland based urban design consultants, Common Ground and Associates, to determine the most appropriate form of affordable housing for the Hornby area. Common Ground, in association with Sustainable Cities Trust, consulted with Hornby area residents and the community concerned with the project over a three month period at the end of 1997. There was a range of feedback from that process. Neighbours immediately adjacent to the proposed project expressed concern at the high density of units being considered and to "crowded" boundaries. According to Murray Griffin, from Sustainable Cities Trust, those concerns were taken into account with changes to the design incorporating a 6 metre landscaped buffer around the project and an increased amount of open space (50%) to be included in the development.
A site was chosen on 1.8 ha of council owned land, originally owned by the old Paparua County Council, which was zoned for open space, diagonally across from the Homby Mall between Shands Road and Main South Road.. Of 19 submissions to the variation of the proposed zoning change from open space to living, 17 were objections. The reasons for objecting were mainly wanting to retain the land for open space and to create a park. The Council approved the zoning change in August 1998 to Living 2 -medium density housing. After the decision was released there were no appeals lodged.
Peter Wills, property asset manager with the City Council, says it is hoped that the development will eventually house 50 units in total with a mixture of tenants. Half of the development will be retained as open space for the public to use (i.e. walkways, gardens, etc). One of the unique features of this housing project is the emphasis on sustainable principles such as solar heating, double glazed windows, communal gardens, and the recycling of waste and grey water. These energy efficiency initiatives have been approved in principle by the Council but costings need to be calculated and agreed to before these ideas are put into the confirmed designs.
Situated next to the Hornby Community Care Trust and community library, the Hornby Stage 1 development will house approximately 20 to 22 units for low income elderly persons and will cover about a quarter of the section. Approval has been granted by the Council to proceed with the development. Common Ground are reviewing design considerations of the Project at the moment in light of the release of the City Plan and the likely outcomes of the resource consent process. Rob Dally, the City Council's property manager, says the council is reviewing the options of retaining ownership of the units with the possibility of rent to buy and/or tenant ownership. He says total cost for Stage 1 is expected to be around 3 million dollars.
Building tenders for Stage 1 should go out in May or June next year.
The other stages will be developed as a joint venture between the Council and private developers. The Council may supply the land and the developers supply the capital to build the units. In return for the land, the council may get some units for free. The ownership structure of these later stages will likely be a mixture of public and private rental and private ownership.
The Council is also exploring the implementation of tenant participation in future management of these units.
Representatives from the Property Investors' Association, the Real Estate Institute and Tenants' Protection Association met in Dunedin in December with Tenancy Services Managers who presented an update on Tenancy Services activities.
The presentation and discussion revealed that applications to the Tenancy Tribunal are now beginning to rise, after an initial decrease earlier last year due to the introduction of the application fees, with the vast majority of applications coming from landlords (92% landlords, 8% tenants).
Over 75% of applications to the Tribunal this year were for rent arrears, termination for rent arrears or breach of rent arrears. This is an increase from the previous year. The percentage of applications assigned to mediation (76.8%) has increased 5.4% from last year. The percentage of applications that were mediated fully (40.9%) decreased 2.5% from the previous year while referrals from mediation to the Tribunal (42.3%) rose 5.4%. The number of applications resolved at the Tenancy Tribunal (75.9%) is down slightly from those resolved at the Tribunal the previous year (76.5%). As of 1 October 1999, the Bond Centre was holding 286,557 tenancy bonds valued at $101, 367, 454.
In response to difficulties faced by both landlords and tenants in enforcing Tenancy Tribunal orders, Tenancy Services is developing a step by step "enforcement of orders" pamphlet. Market rent information will soon be made available on the intemet. All Tenancy Services offices now have overflow calls answered at the Call Centre (located at the Bond Centre). The Call Centre has also been taking general enquiries calls from 8:30 am to ease the pressure at high peak times.
A great way for many people to realise their dream of owning their own home - however- Buyer Beware! It is very important that prospective buyers read contracts carefully and seek legal advice before signing anything. Tenancy Tribunal No. 2495 & 2496/99 Ronald vs Mazur, Christchurch, illustrates the problems that can occur when rent to buy conditions are not set out dearly in writing. The landlord claimed rent under a fixed term tenancy agreement. The tenant applied for compensation for failure to make necessary repairs.
The tenant signed a fixed term agreement for a house property as part of the documentation for a contract to rent to buy. The landlord proposed to build a house on the back lot and the tenant agreed to rent the old house until the new house was built. The tenant maintained that she only agreed to rent the old house, which was in a substandard condition, for $200/wk because of the rent to buy proposal. The tenants were unable to finance the deal and thought the contract was no longer valid and therefore the tenancy would be terminated. The landlord insisted that the fixed term agreement was binding and the tenants moved in. The adjudicator ruled "Clearly there is a mistake about the nature of the contract and the fixed term tenancy is set aside ....The fixed term agreement is not a valid record of the arrangement between the parties..."
On the claim for compensation the adjudicator found that a tenancy was created because the tenants moved in and paid rent. Evidence was provided which showed that the property needed repairs (windows did not open, lads of ventilation, mould, condensation, untidy section). The tenant maintained that she notified the landlord frequently of these matters. The Christchurch City Council was contacted by the tenant and a Building Enforcement Officer inspected the property and sent a letter to the owner with a list of required repairs. The tenant issued a 10 day notice to repair and then moved out.
The landlord denied that there were requests to do repairs and the only written notice was received the day before the tenant vacated the property. The Tribunal dismissed the claim for compensation by the tenant for this reason but also found that the landlord was aware of the need for repairs and having failed to remedy at the beginning of the tenancy, the tenants were entitled to leave. The tenants were ordered to pay the rent owing until the date they vacated the property.
The latest meeting, in November, of the Christchurch Housing Forum was well attended from representatives of many community and government organisations interested in local housing issues. Rob Dally, property manager for the Christchurch City Council made a presentation on the state of the city's housing portfolio and future options in housing provision. The Christchurch City Council has 2,650 housing units in its stock, the majority being rentals for the elderly. A further 22 units for elderly persons will be built in Hornby in the near future. The article "Lessons Learned" in this issue of Housing News provides details on the development of that project. Other Council housing initiatives include the recently completed 22 unit Gloucester Courts which caters for a cross section of the community with rentals set at 75% of market rents, and a 25 unit complex, similar to Gloucester Courts but with more open space, at Cecil Place which is still in the planning/implementation phase The Council has signed an agreement with the Beckenham Baptist Church where the Church provides land at a peppercorn rental and the Council builds 11 units which will be managed by the Church Trust with rentals set at 80% of market rents. Other Christchurch City Council initiatives involve partnerships with the Richmond Fellowship and Stepping Stones Trust supporting tenants in Council units and the YWCA which has leased a former motel block from the Council at a reduced rent.
Rob Dally, Councillor Carole Anderton and Reverend Dave Morrell recently visited Australia to investigate "social housing" in some of the main cities. They found that very few Councils provided housing but that there were many examples of Government/Council/Community Agencies working co-operatively to provide housing with a significant number of housing trusts and housing associations. Tenant participation in management/decision making was significantly higher than in Christchurch City Council housing. State rentals in Australia are set at 25% of income and still there appeared to be significant homelessness problems there. Rob explained that Housing Associations in Australia are set up as legal entities, many having developed from groups such as this housing forum. Some have had state housing transferred to them and some provide additional support services for their tenants.
Rob then told the forum (his opinions and not necessarily policy of the Council) that he believed the Council would be unable to provide all of the affordable housing that would be needed in Christchurch in the future. More opportunities should be made for Government/Community Agencies/ Churches to work in partnership to achieve affordable housing goals in the city. The Council has expressed an interest in relinquishing some of its housing management to trusts and may review tenant participation models.
Kevin Smith from Healthlink South (HLS) advised the group that HLS is keen to develop partnerships where they provide clinical support to tenants but is not interested in taking on a landlord role. Comcare Charitable Trust have a similar arrangement where they support tenants who suffer from mental illness in finding and maintaining a house or flat and help them deal with the landlord/flatmates. The group identified that some Housing New Zealand tenants who need professional support are not receiving it. Kevin advised that Healthlink South have staff who liaise with other agencies to help develop co-operative arrangements. Some agencies are having difficulties with City Plan compliance e.g. housing for people who require a carer/carer visits need neighbours' consent. It was agreed that Rob would coordinate a meeting early in the new year for these agencies to discuss issues with the Council's Environmental Services Manager.
The Christchurch City Council rent/housing policy draft review recommended that all CCC housing rentals should be set at 80% of market rent. This recommendation was based on the fact that tenants in CCC public rental properties are currently paying a market rent (at the low end of the scale) while those in elderly housing persons housing units (EPH) are only paying 50-80/0 of market rentals. Many people in the first category have less ability to pay than those in EPH units. Rob advised that the Council could break even with income from 80/0 of market rents on its properties. Council housing receives no subsidy from rates and is self-sustaining at present. The recommendation did not receive universal support from the City Council and is currently on hold.
In response to a question on consultation Rob advised that the CCC has a Seeking Community Views Policy and is committed to consulting the community in a variety of ways depending on the issues.
Next Christchurch Housing Forum meeting:
Thursday 3 February 2000
12:30 - 2 pm
Oxford Terrace Baptist Church
Thanks to Sally Latham, Christchurch City Council Community Advisor for providing Housing News with the minutes to the November Housing Forum meeting.