Latest update – June 2023
Consultation on the elder housing sale proceeds is now complete and the findings will be reported to Council on 24 July 2023. Please contact our team if you have any questions.
The Council sold seven of its nine elder housing villages to Kāinga Ora – Homes and Communities in 2022.
Kāinga Ora will continue to deliver affordable housing to existing tenants.
The two villages retained by council were in Pitau Road and Hinau Street, which are considered unsuitable locations for community housing. These two villages are currently in the process of being sold for private development. Council worked closely with the tenants of these villages and found them affordable, comfortable, and secure homes in Tauranga, before the villages were offered for sale.
While some of the sale proceeds have already been committed to support local community housing providers and Papakāinga housing, the Council held a consultation to check in with the community on its proposed plans for the rest.
The first part of the proposal involves investing $10 million in a Housing Equity Fund, alongside Bay Trust and TECT, who are also intending to invest in the Fund. Any funds that council invests will be spent within Tauranga city.
The second part of the proposal would see the remaining sale proceeds from the elder housing portfolio also being invested in the Housing Equity Fund and/or other affordable housing initiatives.
The Housing Equity Fund will provide affordable housing for those in our community who are most in need, while delivering a return on investment to support multiple, future housing projects.
For more information on the Housing Equity Fund, please visit Bay of Plenty Housing Equity Fund.
If you would like more information on the full range of investment options we considered, please contact Fiona Nalder.
Community consultation ran from Wednesday 31 May until Monday 26 June.
Sale of seven villages to Kāinga Ora
Kāinga Ora – Homes and Communities now owns seven of Tauranga City Council’s elder housing villages. Over time the sale to Kāinga Ora will deliver an increase in public housing for the city, alongside ongoing affordable housing for existing tenants.
The $17.2 million deal comes with a commitment by Kāinga Ora to invest a further $32.4 million on upgrading and redeveloping the villages for public housing within the next 25 years. The sale agreements take into consideration the age and condition of these older properties and the ongoing costs to maintain and provide warm, safe and dry public housing. The agreements include a six-month transition process, a 25-year partnership between Council and Kāinga Ora, and ensure current tenants have an affordable place to live, now and in the future.
While there are no current redevelopment plans for the villages, Kāinga Ora will explore redevelopment opportunities over the next 2-3 years, to support the strong demand for public housing in Tauranga. If villages are redeveloped, existing tenants will need to move. However, they will be provided alternative affordable housing, located where possible in a community of their choice.
Sale of Pitau Road village and Hinau Street village
Alongside this work, Pitau Road village and Hinau Street village are being sold for private development. This follows Council’s decision in June 2021 to separate these villages from the rest of the portfolio and sell them for private development.
Information about the elder housing review
The most recent information provided to previous tenants is below:
Letter to tenants announcing the sale to Kāinga Ora - May 2022 (74kb pdf)