What’s next for Housing for the Elderly rents?
The council owns 144 Housing for the Elderly units across the Far North. However, the operational costs of running these units are now more than the rent we receive, and we want your feedback on what we should do next.
Here’s what we are proposing / Anei tā mātou e whakatakoto nei
We’re asking for your feedback on four possible ways to review rents for our Housing for the Elderly units.
We want to make sure we continue to meet the needs of our elderly residents, while also keeping the housing portfolio financially viable:
- Option 1 – Keep things as they are
This option would keep the current approach, where rent increases are reviewed annually and adjusted in line with Consumer Price Index (CPI). - Option 2 – Link rents to NZ Super
We’re considering whether rent increases should be tied to a percentage of the NZ Superannuation rate and reviewed annually. - Option 3 – Align rent increases with actual operating costs
Rent increases could be reviewed annually and adjusted to reflect the actual or forecasted cost of running and maintaining the units. This calculation would not include any capital costs that may be needed to meet renewals or upgrades to the units. - Option 4 – Benchmark rents against market rates
Rents would be reviewed as a percentage of current market rates for similar units and reviewed annually. The exact percentage would be decided by elected members. This approach would keep rents below private rental prices while reflecting trends in the wider rental market.
Each option would also include a tiered approach to setting rents. This means the amount charged may differ based on things like the size or location of the unit, and whether it is occupied by one person or a couple. A tiered structure helps ensure rents are set fairly, reflect living arrangements and the value of each home.
To learn more about the four proposed options, view the Housing for the Elderly Proposal Document.
Frequently Asked Questions
This review looks at how rents are increased for both current and future tenancies. Current tenants will continue to have their rents reviewed annually, which may result in changes to their rent.
The council has been looking at options for the future of its Housing for the Elderly units for several years. In 2022, it started testing the market for potential buyers through an Expressions of Interest process.
This process included conditions that the council would retain a level of control to ensure tenants continued to be protected and supported, and that levels of service to these units were maintained. Unfortunately, councils are unable to access central government funding without legislative change and recent updates to central government funding policies have reduced funding opportunities for the housing portfolio. This has affected the Expressions of Interest process, and now the council is working with its commercial arm, Far North Holdings Limited, on positioning the portfolio to be better prepared for future opportunities to work with Community Housing Providers and to benefit from central government funding.
As part of this process, the council looked at how the cost of maintaining and operating the housing units has increased much faster than rent. For more than 15 years, rent has only increased in line with inflation, as measured by the CPI. As a result, current rents no longer cover the full cost of providing the housing, with the shortfall currently being met by general rates.
View the Research Report, which outlines the review objectives and provides further context. It examines how other councils set and adjust rents and how this can inform our approach, along with tenant feedback to help inform possible options.
The current amounts charged for the units are:
Location | Type of Unit | Weekly Rent |
Kaikohe, Kerikeri, Rāwene | Bedsit unit | $130.00 |
Ahipara, Awanui, Horeke, Kawakawa, Oxford St, Puckey Ave, Rāwene, Kohukohu, Waimā | One bedroom unit | $136.20 |
Kaikohe, Ōmāpere, Kerikeri | Larger units: One/ Two-bedroom unit (s) | $140.00 |
All complexes | Couples | $144.60 |
Rents already increase each year in line with the CPI. We’re consulting on whether to change that approach. We want to hear from the community before deciding on the best way forward.
Operational costs include insurance, grounds care, general repair and maintenance to the buildings and equipment (for example, electrical repairs, leaky toilets and stove replacements), as well as contractor costs and rates. Operational costs do not include any capital expenditure that is required for upgrades or major repair works, such as roof replacements and bathroom renovations. These capital expenses are additional expenses that are unbudgeted and are estimated at approximately $15 million over the next 10 years. At present, these works are not funded and there are no plans to upgrade the units within the current or future Long-Term Plans.
General rates are currently subsidising the operational cost shortfall of approximately $230,000 between rent income and running costs across the housing portfolio. This has implications for wider council budgets and other services.
Following the consultation and local government elections in October 2025, all incoming Elected Members will be briefed on the consultation and feedback, with a decision on the options to be made by the incoming council.
How can I have a say / E whai wāhi ai koe ki ngā kōrero
Share your feedback by completing the online survey.
You can also send us a written submission, or download our print-friendly survey form and send it to us:
- By email: submissions@fndc.govt.nz
- By mail: Far North District Council, Private Bag 752, Kaikohe 0440
- In person: Drop your submission at any Far North District Council service centre or library (you can also ask our friendly customer service team to print the survey for you).
Alternatively, you can request to share your feedback verbally by emailing us at submissions@fndc.govt.nz or by phone on 0800 920 029.
Submissions are open until Sunday 28 September.
Note: Anyone is invited to submit feedback on this consultation, whether as an individual or on behalf of an organisation, however, any submissions that are out of scope, offensive, inappropriate, or late may not be accepted by the council. You will be notified if your decision is not accepted and, where appropriate, invited to resubmit.
Any submissions that are made will become part of the public consultation process. The collection and use of personal information by the Far North District Council is regulated by the Privacy Act 2020. Please note that your submission or a summary of your submission will be treated as public information and may be published on the council's website and made available to elected members and members of the public as part of the consultation process. Your name and contact details (address, phone number, email) will only be used for administrative purposes - such as the council contacting you to update you on the outcome of this consultation and letting you know about future consultations