Millions in ratepayer subsidies for luxury apartments but no money to rebuild council rental housing destroyed in earthquakes

Christchurch Progressive Network has written to the mayor and city councillors to ask them to urgently fund the rebuild of council rental housing destroyed in the earthquakes.

“We were staggered to learn the council is providing lucrative rates rebates - $15,000 per unit built – to property developers for luxury apartments in the centre of the city but is refusing to fund the desperately needed council rental housing units destroyed in the earthquakes”

Information from a recent OIA request – copy attached – shows $8.5 million in city centre residential rate rebates over the past four years.

“The big end of town is wallowing in ratepayer handouts while hundreds of tenants and families on low-incomes are stepped over by the council.”

“The is wrong-headed. Even from a commercial point of view it makes no sense refusing to fund housing which brings in rental returns to the council but giving away millions to property developers to build houses which bring no return whatever to the council.

It is commercially stupid as well as morally repugnant.

The council’s contribution to rebuild council rental housing is a proposed $30 million loan to the Otautahi Community Housing Trust, to be paid back at commercial lending rates. This is a weak and unacceptable response which won’t even build half the homes needed to meet the pre-quake council housing levels.

$200 million needs to be set aside to achieve this goal. It will be an investment which will bring the city economic and social returns.

If this means pushing out the timeline for the $473 million spend on a new rugby stadium then that will be the right thing to do.

© Scoop Media