The ownership and management of the council’s five rental houses for senior residents in Wānaka is up for public debate with a recommendation the housing be transferred to the Queenstown Lakes Community Housing Trust (QLCHT).

Queenstown Lakes District Council (QLDC) has indicated it wants to transfer the ownership and operational responsibility of its nine rental properties used to house eligible elderly residents in Wānaka and Arrowtown as proposed by QLCHT.

At a full QLDC meeting in Wānaka yesterday (Thursday, May 2), councillors approved a recommendation to seek public feedback on the QLCHT’s proposal to transfer the title of land on the five senior residents rental properties in Wānaka and lease the four seniors’ units in Arrowtown to the QLCHT.

The proposal suggests a 20 year “peppercorn” lease at $1 per year for the Arrowtown units, which are not freehold, and the transfer of titles of the Wānaka freehold units to QLCHT for $1. 

The bare land purchased by the QLCHT for future rental housing sits adjacent to the council’s rental units for senior residents at the corner of McDougall and Upton Streets. PHOTO: Supplied

The market value of the Wānaka land has been assessed at $2,250,000 but the QLCHT has advised it doesn’t have the capacity to purchase the Wānaka properties at market value. 

If the proposal goes ahead, the QLCHT (which already has 45 eligible seniors waiting for suitable rentals) said the units would remain in permanent community ownership and only be used for the QLCHT’s senior housing rental programme.  

QLCHT has plans to expand its senior housing portfolio and 18 months ago purchased land beside the five council owned seniors’ rental units at the corner of Upton and McDougall Streets. 

Should the proposal to acquire the council owned units be approved, QLCHT aims to build a total of 12 one-bedroom units across the two sites.

The units, all but one of which were recently upgraded to meet “healthy homes” requirements, are all currently tenanted but have operated at a loss to ratepayers for some years.

The proposal includes details of how the current tenants would be cared for throughout the process of changing ownership and rebuilding.

The councillors were advised of the pros and cons of the proposal, which included the units being managed by a suitably qualified tenancy organisation, reducing the cost to ratepayers to manage and maintain the housing, and enabling QLCHT to redevelop the land and increase seniors’ rental housing in Wānaka from five units to 12. 

The elderly housing units are listed as a strategic QLDC asset and the future use and management of these units, including any transfer to the QLCHT, requires public consultation, submissions and a hearing. 

The elected members voted unanimously in favour of the recommendations to adopt the proposal, authorise public consultation and appoint councillors Niki Gladding, Matt Wong and Lisa Guy to sit on the hearing panel.

QLDC chief executive Mike Theelen said the council has no plans at this stage to divest its other rental properties but their future would be considered in an upcoming Strategic Plan review.