Millions in ratepayer subsidies for luxury apartments but no money to rebuild council rental housing destroyed in
earthquakes
Christchurch Progressive Network has written to the mayor and city councillors to ask them to urgently fund the rebuild
of council rental housing destroyed in the earthquakes.
“We were staggered to learn the council is providing lucrative rates rebates - $15,000 per unit built – to property
developers for luxury apartments in the centre of the city but is refusing to fund the desperately needed council rental
housing units destroyed in the earthquakes”
Information from a recent OIA request – copy attached – shows $8.5 million in city centre residential rate rebates over
the past four years.
“The big end of town is wallowing in ratepayer handouts while hundreds of tenants and families on low-incomes are
stepped over by the council.”
“The is wrong-headed. Even from a commercial point of view it makes no sense refusing to fund housing which brings in
rental returns to the council but giving away millions to property developers to build houses which bring no return
whatever to the council.
It is commercially stupid as well as morally repugnant.
The council’s contribution to rebuild council rental housing is a proposed $30 million loan to the Otautahi Community
Housing Trust, to be paid back at commercial lending rates. This is a weak and unacceptable response which won’t even
build half the homes needed to meet the pre-quake council housing levels.
$200 million needs to be set aside to achieve this goal. It will be an investment which will bring the city economic and
social returns.
If this means pushing out the timeline for the $473 million spend on a new rugby stadium then that will be the right
thing to do.