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TE WHAKARURU
KI OTAUTAHI TENANTS PROTECTION ASSOCIATION (CHCH.) Inc. Community House 141 Hereford Street Christchurch Ph.(03) 379-2297 Fax (03) 366-8535 CONTENTS: Ngai Tahu Development Corporation News Brief Housing Forum: One Year On The New Zealand Housing Situation The Ministry of Housing: Outline of Role, Funding and Structure The Residential Tenancy Market in New Zealand Serious Housing Problems The Aranui Revitalisation Project Start With Yourself Te Kakakura Trust Award for Yani Johanson
TPA is a community agency which works to advance generally the rights, interests and welfare of tenants.
HOUSING NEWS is published by Tenants Protection Association (Chch) Inc. with the generous support of |
October/November 2000
"Almost any man worthy of his salt would fight to defend his home but no one ever heard of a man going to war for his boarding house"
Mark Twain (1835-1910)
My colleague and I visited a central city property this week. It is a place where I would not put my worst enemy in, let alone my favourite pet. Talking of pets I don't think the rats that roam the premises are anyone's pet. One of the tenants, a man paying $65 for his room said with good humour "I don't mind sharing my food with the mice and rats, but I wish they would pay for it."
No landlord should be allowed to rent property that offers not even the basic standard considered reasonable under any act, including the Residential Tenancies Act. I checked the address of the owner. He and his family of course live in comfort at a very good address.
The people who live there and the other two properties adjacent are mostly recipients of some form of benefit from Work and Income, which effectively means the Govt is paying this landlord approx $1500 per week for totally substandard accommodation.
One might ask. Why don't you have it closed down? We just might do that after the C.C.C. Housing inspectors, The Fire service and we have completed our reports BUT what about the people who live there, where will they go? Some of them actually don't mind being there and they know that there is nothing out there for them anyway. The Landlord will say that the tenants have damaged this property, they don't care. Well Mr Landlord, as long as people like you continue to get away with renting properties like this to people YOU see only as a means of lining your pocket you deserve to then, suffer the consequence of your cavalier attitude.
The painful thing for me is seeing the tenants making something of a home in their own rooms, in these places eg. a poster on the wall, knicknacs and a pot plant while in the common areas there are holes in the walls the size of saucers where the rats jump out of. The kitchen area has a stove which should have been dumped probably about 30 years ago and carpet on the stairs which anyone could trip on (we did) also there is a filthy disgusting shower toilet and bathroom (which no amount of cleaning on the tenants part could disguise the state of it etc etc....
We at TPA and many other people from other agencies have lobbied for a Certificate Of Fitness on properties. It is long over due and the Govt must make a real commitment to introduce it. In the meantime we are making our own commitment to the tenants in CHCH that have to suffer the indignity of living in such appalling conditions, that we are going to keep on this particular Landlords case and any other that comes to our attention.
Janice Donaldson is the Social and Economic Development manager at Ngai Tahu Development Corporation. Her portfolio includes a focus on housing specifically:
The areas being considered are:
The focus is on gathering as much information as possible to identify the housing issues for Ngai Tahu specifically and Maori in general to this region.
Currently Janice and Ruth Teasdale from Comcare are involved in a project working with local government and community focusing on the management and ownership of social housing. This project has been undertaken by McKinlay Douglas for the Ministry of Social Policy and Local Government in New Zealand.
Project Elements under discussion are:
For further information please contact Janice Donaldson Ngai Tahu Development Corporation Ltd
(From The Press Wednesday October 18th 2000)
More than 40,000 State housing tenants have already applied for income-related rents in readiness for a law change that comes into effect on December 1.
Housing Minister Mark Gosche yesterday described the response as "excellent." In August Parliament passed legislation to bring back income-related rent for most Statehouse tenants. The Housing Restructuring (Income-Related Rents) Amendment Bill will bring down rents to 25 percent of income for most of Housing New Zealand 58,000 tenants, depending on what they earn or get through benefits. "To date the figures show that 55 percent of State-house tenants will be $20 to $60 better off each week," Mr Gosche told Parliament yesterday. "The formula was worked out so that people would not be worse off under income-related rents and I not been made aware of any complaints (suggesting otherwise)".
It is timely to look back at the Housing Forum in 1999 and to see what developments have occurred from that meeting in respect of local and national government.
Rob Dally, property manager for the Christchurch City Council spoke at the forum outlining the councils housing initiatives and future plans under the heading of "Housing People, Creating Healthy Communities"
One year on Mr Dally has highlighted these key points.
Affordability Gap — the affordability gap was identified as a key issue by the Christchurch City Council back in 1996. Little has changed. There is still an affordability gap. Central Government has moved to reduce rents to 25% of income for qualifying households: this is a step in the right direction. The Council administers less than 10% of the rental property market in Christchurch and accordingly does not influence the market in terms of its rental policy. The gap between household income and market rent is still a problem that is exacerbated by the accommodation supplement. The council is about to review its housing rents for the first time since 1996. They may not go down but they certainly will not go up. The affordability gap for social housing requires fiurther government intervention.
Impact of Market Rental Policy — there will always be a market rent whatever the major players, including Housing New Zealand do. In my opinion the influence of a reduction to 25% of household income for Housing New Zealand qualifying households will have a minimal impact on the market. Whilst I am unaware of any proposed changes to the accommodation supplement, it is interesting to note that market rents increased appreciably when the accommodation supplement was implemented.
Funding Restraints on CCC Housing — the Council has a stand alone Housing Development Fund comprised of surpluses from the operational housing account plus depreciation on the portfolio. We currently have two projects under construction with a final value of $5.8 million which clearly has an effect on the residual fund. It should also be noted that the Housing Development Fund is primarily a fund to replace the existing portfolio as it depreciates.
Impact of De-institutionalisation on CCC Service — it has become clearer over the last several years that there is a demand for bedsit / single bedroom accommodation offered by the Council from those who have come out of institutional care. The housing of people coming out of institutional care has impacted more heavily in terms of time with tenant requirements where perhaps 20% of our tenants demand 80% of our time. The Council did approach the previous government seeking some contribution to the requirement of extra resources in this area without success. We intend to approach the current government on a similar basis.
Priority Housing Needs and How to Meet Them — the Council has a broad social housing policy which eatables wide ranging support to be sought / given. The matter of prioritizing needs has become more complex and currently the Council have joined with Housing New Zealand to undertake a social housing needs assessment. The Council is also currently doing some research into housing need for:
Some guidelines have been established and a policy to assist in making priority decisions is being developed.
Future of CCC Housing Stock, Including Resident Mix — the Council has a commitment to retain in-house its existing housing stock and indeed to increase that stock as identified needs are established. The vision statement of the Council with regard to social housing enables a broad resident mix which is in line with the Council's policy to integrate, where possible, a cross section of the community in its housing complexes.
Wise Use of the CCC Development Fund — The Housing Development Fund is primarily for the replacement of existing housing rather than the building of new stock. The Council is currently undertaking a needs analysis for social housing in conjunction with Housing New Zealand. This assessment includes review of demographics, trends, etc. Until this review
Need to Lobby Government for Change — the Council had lobbied the previous government for a number of changes in housing, including inadequacy / appropriateness of the accommodation supplement, a definition of homelessness, amongst other significant issues. Because we received little support on those issues we have lobbied the existing government who have indicated a willingness to work in partnership with the Council in providing appropriate social housing outcomes.
CCC Advocacy Role, Welfare Support Facilitation — the Council, late in 1999, resolved to adopt a new tenant support policy which clearly articulates the role of the Council as an advocate for welfare support rather than a provider.
Partnerships with Churches and Community Organizations — in July this year the first significant partnership with the Colombo Baptist Church was consummated through the opening of Lancewood Courts in Beckenham. This has been a brilliant model with the Council investing $900,000 or 75% of the project with the Church providing two building sections and obtaining sponsorship equivalent to the balance 25% of the project. The Council leases the land off a Church Trust whilst the Trust manage the tenancies and the complex on a day to day basis through a management contract with the Council. Rents are set at 80% of market. A high level of support is given to tenants. The Council recognize this project as a significant New Zealand first and worthy of repeating.
Tim Barnet — MP for Christchurch Central who also addressed the forum has also outlined the progress made on the government housing policy and the key points are as follows:
Return to a needs-driven housing policy — The Labour-Alliance Government has taken a multi-faceted approach to housing involving the introduction of income related rents, improved contact with and investment in alternative housing provision and increase in government's capacity to handle housing issues. The major emphasis in the Department has been to deliver on income based rents, remove the profit focus of Housing New Zealand and restore government's ability to handle housing issues.
Income related rents — From 1 December 2000, low income Housing New Zealand tenants will pay no more than 25% of their income in rent. Independent studies have shown that high housing costs are the single largest cause of poverty in New Zealand.
The profit motive for Housing New Zealand has been removed — The primary objective of Housing New Zealand will become the delivery of social objectives in a spirit of social responsibility.
Increasing the number of state houses — In the past seven and a half years, the total state housing stock reduced by 11,000 to 59,000 properties-a reduction of 3,000 properties was caused by Home Buy sales. The home buy scheme had been reducing state housing stock by around 700 houses per annum. The government is working on a range of ways to increase the number of state houses. Their sale has stopped. The backlog of maintenance on homes is being addressed. A significant building policy was announced in the 2000/01 budget.
A budget boost to Community Housing — $28.7 million was allocated to Community Housing Limited to buy and modify 120 properties. This will take CHL stock to 1,200 by January 2001.
Private Rental Housing — To date, limited work has been done on private rental housing. It will be a greater focus over the next two years. The concept of assignment of benefits has been progressed by the Minister of Social Services and Employment. Planned revamping of the Residential Tenancies Act will include such concepts as a warrant of fitness.
Partnership with local government — The partnership approach with local government has been progressed both as part of the wider government initiative and specifically in run down state housingdominated neighbourhoods in urban areas (e.g. Aranui).
Looking to 2002 — The major focus from November until 2002 will be the development of self-help and community housing initiatives.
Below are general statistics from the 1996 Census which show ownership rates and rental statistics which provide a snapshot of the housing situation at that time.
New Zealanders are generally well housed. New Zealand's rate of home ownership is high by world standards. The quality of both owneroccupied and rental housing is generally high, and basic amenities such as heating, water, electricity and sewage disposal are almost universal.
In March 1996, New Zealand's total population was 3.68 million. The usually resident population had increased by 7.2% from 1991 to 3.62 million.
The number of occupied private dwellings was 1.28 million, an increase of 99,000 (8.4%) from 1991. The average number of people per dwelling was 2.8, equal to the average in 1991. One-person households made up approximately 20% of all households. Approximately 2,400 dwellings had more than three people per bedroom - a rough measure of crowding.
In the 1996 Census 7,338 (1%) of private dwellings were classified as temporary dwellings such as caravans or mobile homes. It is not possible to identify whether those in temporary accommodation live there out of choice or necessity.
Literal homelessness is extremely difficult to measure, although it is not a major problem in New Zealand by international standards. The number of people who reported "No Fixed Abode" in March 1996 was 964. Where homelessness does occur in New Zealand, it is often linked to psychiatric disability or illness and is temporary in nature.
New Zealand's home ownership rate was 71% in 1996. This reflects the general affordability of home ownership in New Zealand as well as the benefits home ownership generally has over renting, and New Zealanders' historical preference for this form of tenure.
Home ownership rates are lower among Maori (53%) and Pacific Islanders (44%) households. In comparison, 75% of non-Polynesian households (81% of total population) are owner-occupied. Home ownership rates tend to increase with age.
Slightly more than half (53%) of owneroccupied dwellings are owned with a mortgage. Forty nine percent of European owner-occupied dwellings are owned with a mortgage compared to 69% and 76% of Maori and Pacific Island households respectively.
Where landlord was specified, 72% of occupied rental properties were privately owned. Central and local government agencies provided 22% and 5% of rental dwellings respectively. In 1991 central government provided 30% of rental accommodation while local government provided 6%. The proportion of households renting was 24.6% in 1996.
For further information please consult: http://www.minhousing.govt.nz/situation.html
Post Election Briefing from the Ministry of Housing
The core function of the Ministry of Housing is to administer the Residential Tenancies Act 1986. This involves the provision of education; information and advisory services; administration of tenancy bonds; and dispute resolution services for residential landlords and tenants. The Residential Tenancies Act establishes the law applicable to such tenancies, and provides for associated administrative and Tenancy Tribunal services.
The Ministry also pays subsidies (interest subsidies and other commitments related to sales of mortgages) on past and present Housing Corporation of New Zealand mortgages. The amount of these payments has been reducing due to fewer eligible mortgages and lower market interest rates. The provision in 1999/00 is $2.758 million.
The Ministry previously had responsibility for the provision of advice on housing policy issues. This function moved to the Social Policy Agency in the Department of Social Welfare (now the Ministry of Social Policy) in December 1998. The Ministry of Housing (Te Whare Ahuru) was established on 1 July 1992. As at 30 September 1999 it had 134 staff (84 female, 50 male), including temporary staff. Its Tenancy Services Division employed 116 staff, and 18 were employed in Corporate Services and Finance.
In 1999/00 the Ministry's expenditure on outputs is expected to be $13.874 million (this and subsequent figures are GST inclusive), of which $3.401 million covers bond administration and $10.473 million is for general residential tenancies information and dispute resolution services. Revenue forecasts are for $5 million from interest on tenancy bonds held in trust, and $0.598 million from Tenancy Tribunal application fees.
The Ministry's Chief Executive is David Smyth. Other senior managers are National Manager Tenancy Services, Robin Henderson; Manager Corporate Services, David Baguley; and Financial Controller, Ruth Jamieson. The Tenancy Services Division is structured into three regions with a total of 21 district offices, and also includes the Bond Centre in Porirua.
The basic source of information on residential tenancies is Census data. In 1996 there were 290,000 rented dwellings in New Zealand, 72% of which were private and 28% public. Housing New Zealand (HNZ) was 19% of the total (the Census figures appeared to understate the actual number of HNZ properties rented).
The proportion of rented dwellings in the total housing stock, and the proportion of those owned by private landlords, have both grown in the ten years to 1996. Later comparable data is not available, but these trends have probably continued. Data on private landlords is not readily available. A significant proportion of rental dwellings are owned by "small" landlords who own one or two rental properties as an investment. Many landlords use property managers as agents to manage tenancies on their behalf.
Based on the 1996 Census, tenants are more likely to have lower incomes, be beneficiaries, and be younger. There is some evidence from trends between the 1986 and 1996 Censuses that people in the 20-34 age group are delaying the purchase of houses. Recent immigrants and Maori and Pacific Island people are also more likely to be tenants than is the case for the population as a whole, partly reflecting the age, income and employment characteristics for these groups.
Rents for new tenancies in March 1999 were 29% higher than in March 1993. However, most of that increase occurred before 1997, and March 1999 rents were less than 4% higher than in March 1996. Rents in Auckland in the last threeyear period decreased slightly, and changes in rents vary considerably in different parts of the country.
The duration of many tenancies is quite short. For tenancies which ended during the year ended June 1999, the average term of the tenancies was 16 months. However, this average is affected by a significant number of tenancies that last for a long time. The median term is 9.5 months, i.e. 50% of all tenancies last less than 9.5 months. HNZ tenancies have much longer duration, with the mean and median terms being 33.6 and 16.4 months respectively.
It is estimated that about 75% of all tenancies involve a bond paid by the tenant and deposited with the Ministry's Bond Centre. The average value of bonds lodged in 1998-99 is equivalent to just over two weeks' rent, and this has increased slightly over the last six years. At September 1999 287,000 bonds were held at the Bond Centre, to the value of $101 million.
These are extracts from actual letters sent to various councils and housing associations throughout the UK:
This project is just getting underway. The project team made up jointly of Housing New Zealand and Christchurch City Council personnel. Mr Ian Bourke, Housing New Zealand and Mr Rob Dally property manager Christchurch City Council have outlined their involvement in the project to date.
Mr Dally states that although the Aranui Renewal Project may not relate specifically to Council housing but it is a project which has the potential to effect the lives of many tenants of social housing in that sector of the city. The intention is to consult with the community to establish their aspirations for Aranui as they would like to see it in the future. Clearly the Council has an interest in many aspects of this project including parks, libraries, EPH housing, city streets, planning issues, waterways enhancement to name a few. The intention of the project, having established the wants of the community, is to put in place a programme that is both affordable and achievable to deliver on those wants in a co-ordinated and affordable manner.
Mr Bourke reiterated that the first phase of the project was underway by gearing up to consult with the community and developing a proper consultative process with Council and being guiding in that process from Council and the community boards.
Since the announcement of commitment to the "revitalisation of Aranui" Housing New Zealand has received overwhelming expressions of support from local community groups and individuals. The aim is to have the first part of the public consultation process underway before Christmas.
When I was young and free and my imagination had no limits, I dreamed of changing the world. As I grew older and wiser, I discovered the world would not change, so I shortened my sights somewhat and derided to change only my country. But it, too, seemed immovable.
As I grew into my twilight years, in one last desperate attempt, I settled for changing only my family, those closest to me, but alas, they would have none of it.
And now as I lay on my deathbed, I suddenly realise: If I had only changed myself first, the by example, I would have changed my family. From their inspiration and encouragement, I then would have been able to better my country and who knows I may have changed the world.
-Anonymous
Te Kakakura Trust is based on Otautahi and draws on the expertise and mana of the three partners of the Trust:
Te Kakakura Trust has been specifically developed to provide Treaty-based governance for a range of Kaupapa Maori mental health services.
Kaiawhina-a-rohe is a community support service set up by the Trust to deliver housing services to Maori clients with a mental health diagnosis.
Kaiarahi (team leader) Sandy Hunt stressed the excellent experience of working with Comcare in this venture. Comcare's Annette Sutherland has proved to be an understanding, resourceful and experienced partner in being able to access the physical needs of housing Kaiawhina-a-rohe clients. Annette's ability to work in partnership through the various stages of housing clients is evident from the initial introduction process, the placing of clients in housing and the ability to disengage and let the appropriate other supports to the client develop. Historically clients had had a particularly regrettable relationship with Housing New Zealand. For example HNZ provided no floor coverings, drapes, washing machines, fridges etc. These items were found only in other rental accommodation and the expense of setting up clients with these items had proved prohibitive in time and money for the Trust.
Clients that are housed are encouraged to access the programme that is delivered by Kaiawhina-a-rohe community support workers. This may include
Clients are also encouraged to be responsible for their tenancy and this is reflected in the majority of the tenants arranging for their rent to be direct credited to the landlord. This responsibility and esteem building action encourages an ongoing relationship with the landlord but also builds a sound base of ownership which aids other health issues being addressed.
Since the development of the Trust the building of relationships with Council and Housing New Zealand has also improved.
Sandy Hunt spoke enthusiastically about the Riccarton branch of Housing New Zealand whose open and relaxed attitude during the interview process has been an excellent experience for their clients.
Kaiawhina-a-rohe are trained, caring people who stand alongside people with psychiatric illness. For further information contact Sandy Hunt phone (03) 379 7200 or (025) 229 1877, fax (03) 379 7201 or call at Mental Health Education and Resource Centre, Level 2, Securities House, cur Gloucester & Madras Sts, PO Boa 13-167, Christchurch.
TPA would like to congratulate Yani on receiving this award.
The award was presented to Yani for his community work with young people. This work, mainly voluntary, includes working with skateboarders, organising Youth Awareness Week and conferences on youth health, working with TPA developing youth friendly housing policy and being heavily involved in the development of the City Council's youth policy. In presenting the award to Yani, Anna Crighton talked about Yani's commitment, energy and integrity in working with youth and the valuable contribution be has played in youth focused community activities