Inner-Chch renewal proposed

Press, 4 April 1989, Page 7

Inner-Chch renewal proposed

By

KAY FORRESTER

A 10-year programme to improve many of Christchurch’s older housing areas will be investigated by the Christchurch City Council.

Several council-officer reports have been done on the proposal of Cr David Close. A working party of councillors will investigate financing, the council’s property and promotion committee decided yesterday. Cr Close has suggested an inner-suburbs renewal that would involve the purchase and demolition of decaying houses, the construction of 400 rental units, and incentives to improve existing housing, the streetscape and environment. Cr Close suggested Addington, Sydenham and Richmond as suburbs where the scheme could be used. The proposal depends on capital being made available at low interest rates from council funds and on market interest rates continuing to fall. His proposed source of funds is the council’s housing development fund. Surpluses from existing public rental housing is expected to be $650,000 for the financial year just begun. Cr Close said he believed that would meet a fifth of the capital cost of 40 new rental units a year. He wanted concessional loans at 3 per cent in-

terest from the council’s capital fund. The council expected a substantial income from the airport and that could be used, he suggested. For the first two years of the scheme, $1.2 million would be needed each year from this source and $BOO,OOO each year after that, assuming interest rates fall. Further finance could be raised on the open loan market. He estimated interest for these at 11 per cent initially and at 8.5 per cent after two years. If interest rates fell more than expected the number of new units a year could be increased, or if interest rates did not fall the number could be decreased or more concessional finance made available. Cr Close assumed a perunit cost of $75,000, totalling $3 million a year. To recoup the loan-service charge, rent for the units would need to be $230 a week to break even. Forty units a year could be sustained over 10 years, he said. If Housing Corporation money was available a much larger programme could be developed. Cr Close said neighbourhoods would be con-

suited on housing, traffic, streetworks, reserves, community facilities, and landscaping. He put forward the proposal because of the slow rate of house replacement since the 1970 s and the growing sub-standard accommodation in Christchurch. He wanted to see more comprehensive redevelopment. Because it was uneconomic for private developers to invest in housing in rundown areas, the council would have to take the lead, he said. Council investment in urban renewal would create jobs, he said. The officers’ reports on the proposal were mixed. Some suggested funding would be difficult without central government money. All applauded the urban renewal aim. Cr Maurice Carter said it would be impossible without central government funding.

A four-councillor subcommittee will investigate funding. The council’s property and promotion committee yesterday approved the draft housing budget with an expenditure of $6.3 million and a surplus or contribution to rates of $36,689.