Some State tenants will pay more

Press, Volume CXVI, Issue 34097, 8 March 1976, Page 2

Some State tenants will pay more

' <-V Z. Press Association) > WELLINGTON. | Changes in State housing rentals will not (affect some tenants for another year. But others! will have to pay up to $lO a week more, as a, result of last week’s' mini-Budget, from this month. The unequal rents which: ican be expected throughout! (the next 12 months are the! ;result of the Housing Cor-: poration’s traditional policy! lof staggering its annual indi-: vidual rent reviews instead of assessing all rents at once. The divisonal director of housing management for the ' corporation (Mr T. H. Law-rv) ] said that the changes to State rentals would affect tenants 1 in all 54,000 corporation ' houses and flats. In the past, rents were as- ( ! sessed at one-sixth of the

.breadwinner’s taxable incomeland two-thirds of the spouse’s! I taxable income up to a total! of $lOO, the rent increasing, Iby $1 for every $2 of income 1 over $lOO. Assessable income was ■only for a 40-hour week, and did not include overtime, .secondary employment, or taxable allowances. Under the new system, all! taxable income is accounted jfor in assessing rent. The maximum increase alilowable under the new pro-: (visions is STO; and if a tenant considers he is paying morel .than a “fair” rent, (which is (assessed on the value of the I ;property), he may apply for a review. If the family'.; income falls during the year, the tenant! may seek an immediate review to bring the rent into relativity with his new income and rnav also apply for a review, for anv other reason, six months after the last. The cornoration’s officers said that they did not know ,

how the increases would l affect the old provisions.! which make two-thirds of the ■4O-hour week income of any (other occupier, apart from a] (spouse aged 35 or more, as-: Isessable in a review, or the! I $5 a week payable by anyone else aged between 25 and| 35 who lives in the house. : ! Mr Lawrv said details such, (as these, were still being (worked out. On past experience, the re-: :■ introduction of measures which allow tenants to huv] State houses will likely result:

■in many inquiries. But because a 20 per cent deposit is necessary, the offer may |only be taken up by those on higher incomes.