Ashburton District Council met with its Elderly Persons Housing tenants last Friday to discuss proposed rent increases that are expected to be included in the Council's draft Long Term Plan going out for public consultation this month.

The Council has been working through possible funding options for the activity as the current model is no longer feasible, and has met with tenants to provide information, including guidance on Government accommodation supplements that they may be eligible for.

The Council currently provides 104 homes for qualifying elderly residents at below market rent but that rent has not been covering ongoing maintenance costs, and cash reserves to cover the shortfall are projected to run out in four years.

A general rates contribution is expected to be utilised in the next five-to-six years to support the activity until it returns to being self-sustaining.

In its draft LTP 2021-31, Council is expecting to include a proposal for rents to incrementally increase until the year 2026, by which time other ratepayers will no longer be required to subsidise the houses, and reserve funds will not be depleted.

It is proposed that rents would increase by up to $20 per week in the first year to $110 for single units and $130 for doubles, followed by a $10 increase each year until the single units are $170 and doubles are $190.

Council Business Support Group Manager, Paul Brake says all residents will have an opportunity to provide feedback on the proposal when consultation opens this month, but that Council's first priority was ensuring tenants had ample information prior to the plan going out for feedback.

"Our Elderly Persons Housing stock has needed refurbishments for general wear and tear in recent years and new Government healthy homes standards have also added to this work.

"We need this to be a sustainable service but want to ensure that the homes we provide our tenants are warm and comfortable. What has been proposed is a solution to both of these."

A report on the Council's Elderly Persons Housing will be discussed at the Council meeting on Wednesday 3 March. The meeting will be live-streamed on the Council's Facebook page and YouTube channel at 1pm.