Six new rental homes will be built in Nelson, after a housing trust bought two properties from the Nelson City Council.
File photo. Photo: RNZ / Tracy Neal
Nelson Tasman Housing Trust will build four homes on the Totara Street sections, currently taken up by two single houses that are unsuitable for redevelopment.
The council purchased the Totara Street properties in the 1990s for the potential relocation of Victory Kindergarten from St Vincent St in the event of the Southern Link progressing.
However, after endorsement of the Nelson Future Access business case last year, the properties were no longer needed.
A proposal was received from Nelson Tasman Housing Trust to increase the supply of housing in the sought-after urban area, which is close to shops, schools, parks, active transport links and services.
Council accepted the proposal put forward by the trust and has sold the properties at the land valuation of $715,000.
Deputy Mayor Judene Edgar said there was a pressing need for affordable housing in Nelson, and the sale of the properties furthered the goals and actions of council's Intensification Action Plan.
"Housing affordability and intensification are priorities of council, and we've always known that strong partnerships are the key to addressing the housing crisis. This sale shows that by working with community housing providers, Council can make the most of its assets to deliver more housing for our community.
The trust plans to secure an agreement with the Ministry for Housing and Urban Development to complete the development.
Trust director Carrie Mozena said the houses would be long-term rentals designed to give housing security o families.
The development will include a mix of two, three, and four-bedroom homes.
The trust at present has 50 rental homes for people on low incomes in Nelson and Tasman, and plans to develop another 50 rental homes in the next five years.
It will now work through the consenting process, with building of the properties expected to start in 2023.