Housing Corp. rents to rise

Press, 19 February 1986, Page 3

Housing Corp. rents to rise

PA Wellington Housing Corporation rents would rise this year, said the Minister of Housing, Mr Goff, yesterday. Although he did not specify the size of the increase, he said rents must rise to avoid a huge deficit. Mr Goff said a small group of higher-income tenants in corporation homes would face rises to unsubsidised market-re-lated rents with the passage of the Residential Tenancies Bill later this year. Such a move was foreshadowed almost a year ago in the 1985/86 housing package.

Mr Goff made his comments to the Combined Royal Society of Health and Institute of Health Inspectors’ conference in Auckland. He criticised the rent freeze, saying that rents had, fallen well below those needed to maintain houses and Increase stock without growing public subsidies.

“To avoid a huge deficit rents must increase,” he said.

While rent increases were never welcome they were essential if families in urgent need were to be given the same assistance given to families who were corporation tenants.

The alternative was to increasingly subsidise a fortunate minority who enjoyed security of tenure in corporation homes while a growing number of families paid unaffordable rent without security in the private sector, he said.

able rent without security in the private sector, he said. State tenants who maliciously damage their homes or walk out owing large amounts of rent

would not get further help from the corporation, Mr Goff said. Announcing a "firm line” on the problem of rent arrears and unpaid repair bills, he said the corporation was fortunate that the overwhelming majority of its 58,000 tenants looked after their homes and kept up rent payments. Only about 1 to 2 per cent were now behind with their rents compared' with 8.4 per cent in 1978. The problem of damage was reflected in repair bills owed by former tenants, Mr Goff said. He warned that those who deliberately damaged their houses or quit them without paying rent would not get another State house or corporation home loan.

“Unless they have made adequate arrangements to pay the arrears or repair bills, they simply won’t be considered for assistance.” The few “bad apples” were hindering the corporation’s efforts to improve the image of State rental housing, he said.

“It would be unfair to those who take scrupulous care of their homes to fail to take appropriate action against those who don’t give a damn. "Tenants who maliciously damage properties should expect the ultimate sanction of eviction although the corporation is loath to take such a serious step where the welfare of children is concerned.” Mr Goff said the corporation evicted only about 20 tenants a year, but quite a few others moved out when the writing on the wall was that they faced eviction.