They are Carlyle Place Village (32 units), Wellesley Place Village (28 units) and Nelson Place Village (12 units), all of which are close to Napier’s CBD.
The Carlyle Place Village where 32 units are set to be sold off. Photo / Gary Hamilton-Irvine
There has been uncertainty around whether those villages will be sold as vacant properties or with tenants remaining.
A council spokeswoman confirmed this week that it was “highly likely that the villages will be sold with vacant possession” and they will hit the market next month.
The council also confirmed that 40 homes have tenants, with 66 residents.
They are a mix of pensioners and low-income earners.
A letter was sent to impacted residents at the end of last month, which encouraged them to start looking for new homes.
It also offered support to find a new place.
The Wellesley Place Village where 28 homes are set to be sold. Photo / Gary Hamilton-Irvine
“At this stage, you can continue living in your home,” the letter read.
“As the sale process moves forward, there will be a time when you will need to move, so we encourage you to begin thinking about your future living arrangements.”
For those over-60, an option includes moving into another council village.
The council says its affordable housing – which is mainly reserved for retirees – costs more to maintain than it generates in rental income, with a shortfall of about $2.5 million per year picked up by ratepayers.
The council spokeswoman said costs had increased “significantly” over the years.
Housing at the council’s Nelson Place Village in Napier South.
“While there are currently vacant units within the villages because of the forthcoming planned sales, even if fully tenanted, the rent does not cover the costs, and the shortfall is ultimately borne by ratepayers.”
The council spokeswoman said no tenant would be left without a home, and staff were working with tenants to find them homes.
Resident Robyn McCracken, 72, has lived in her council-owned home for 12 years, at Nelson Place Village (off Nelson Crescent).
“I’ve got stage four cancer and I’ve been told I have got six months to live, for me to have to move [is really difficult],” she said.
“I don’t have the energy to pack up my entire house and to clean it.
“I don’t want to have to worry about where I have to live.”
She said she also had neighbours in their 90s, who would find it difficult to move.
McCracken said there were a lot of empty apartments in her village, and she believed the council could break even if they rented them all out.
She said money could also, perhaps, be saved by cutting back on contractors to do lawns and gardening, as many residents do it themselves, including herself.
She stays in a two-bedroom home and said it was a “lovely” and “peaceful” community.
She was doubtful she would get a like-for-like home at another of the council’s villages, which mainly have one-bedroom units.
Resident Paul Kelly, 76, moved into Wellesley Place Village (near Napier Health) about three years ago, after losing his rental near Eskdale during Cyclone Gabrielle.
“It’s made me feel secure. It’s safe. I’ve got good neighbours.”
He said the council had been good in terms of trying to find people alternative housing. Te Taiwhenua o Heretaunga has also been assisting him.
However, he said he felt the council did not need to sell the homes.
He said a couple of the units had been empty since he moved in three years ago, and he believed it could be viable.
“They can break even,” he claimed.
“I think Napier needs places like these.”
He said if another cyclone were to hit, similar to Gabrielle, it was important to protect housing in the region, not potentially remove them.
He said there was no guarantee a buyer would keep the site as housing.
Funds from the sale of the three villages will be ringfenced for reinvestment into the remaining housing portfolio.
According to a 2022 valuation, the market value of the three villages was $21.8 million.
Tenants currently pay between $210 and $326 in rent each week.
The council wants to ensure all tenants are seniors (over-60) in its remaining villages.