A cost recovery approach to capital and maintenance work carried out on community housing units owned by the Council has now been applied.
The cost recovery rental model (flagged in the 2021-31 Long Term Plan) requires Council to consider all costs and confirm the
capital to be spent on the units which must now be recovered from rentals.
Rents for Council's community housing units were previously based on current market rate. With the move to a cost-recovery model they have been divided into three categories based on their previous rental level.
Category 1 - units in Clinton, Lawrence, Owaka.
Category 2 - units in Milton, Toshvale in Balcutha.
Category 3 - units in Kaitangata, Tapanui, Waihola and the remaining ones in Balclutha.
At this meeting Councillors were presented with four potential rental increase options and decided to adopt a proportional increase in rents across all three category of rentals. Councillors decided that the rents for community housing in 2022/23 will be:
Category 1 - $132 rent per week
Category 2 - $146 rent per week
Category 3 - $167 rent per week.
Recent legislative changes mean rentals can only be adjusted every 12 months.