Now the sale of its entire elder housing portfolio is nearing completion, Tauranga City Council is proposing to reinvest the proceeds to support social and affordable housing outcomes for the city.

Commission chair Anne Tolley says the intention when Council first decided to sell its elder housing portfolio was to use the funds generated to help address local housing needs, and that hasn't changed.

"We know that access to affordable homes is an issue for many people and we believe the best use of the elder village sale proceeds is to support better housing outcomes for all.”

The council sold seven of its nine elder housing villages to Kāinga Ora – Homes and Communities in 2022.

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.

At the time, Anne Tolley said that as a public housing provider, Kāinga Ora was much better placed than Council to redevelop the villages and upgrade the units, which were all in need of some ‘TLC'.

While some of the sale proceeds have already been committed to support local community housing providers and Papakāinga housing, the council wants to check in with the community on its proposed plans for the rest.

'We've done some work on options for the remaining funds and we're looking for feedback from the community on whether we've got it right.”

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.

'The Housing Equity Fund has been set up to provide affordable housing for those in our community who are most in need, while also delivering a return on investment which the Fund partners can reinvest in housing projects which will benefit future generations.”

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.

'Housing supply is a priority for council, as is ensuring that a range of options is available to meet community needs for years to come.”

'We think this is a sensible way to help address the city's deficit in affordable and social housing, but now we need to hear what the community thinks before any final investment decision is made.”

Community consultation closes on Wednesday, June 21. Visit the Tauranga City Council website to provide your feedback on this proposal, or for more information visit the Housing Equity Fund website.