The land on Marlowe Road. Photo: Supplied / Benji Nathan
Auckland Council is maintaining its stance on allowing Kāinga Ora to use pensioner-donated land for social housing.
Part of the Blockhouse Bay land, now owned by Kāinga Ora, was donated to Auckland Council in the 1970s by former resident Roy Benjafield Thompson, on the condition that it provided housing for older citizens.
Residents have started pursuing legal action against Auckland Council over the dispute, saying the donation should be honoured, and the council should not have sold the land to the estate landlord.
However, the council's associate general counsel, Kathryn Hickling, said the money from the sale of the land in Blockhouse Bay was being used to upgrade Haumaru Housing, a partnership programme between Auckland Council and The Selwyn Foundation - which provided homes for senior citizens.
"In our most recent Long-Term Plan, Auckland Council budgeted an additional $2,052,211 to seniors housing provider Haumaru Housing ... this funding is noted as being from the sale of 24 Marlowe Road, Blockhouse Bay, gifted by Mr R B Thompson.
"The additional funding from the sale of 24 Marlowe Road will enable upgrades to several Haumaru Housing residential villages, improving accessibility and the overall quality of life for residents."
The donation agreement between the council and Roy Benjafield Thompson. Photo: Supplied / Benji Nathan
Hickling noted that these upgrades would not have been possible without Thompson's donation.
"Auckland Council and Haumaru Housing are grateful to Mr R B Thompson and the legacy he and his wife have left for older people in Auckland."
Property lawyer Joanna Pidgeon told RNZ the land could only have been sold if the proceeds were used for pensioner housing.
"It's the council's responsibility to follow the terms of the trust, and they can't change that without a court order or the attorney-general's approval of the change in purpose.
"If done correctly, the funds can be traced to ensure they have been applied as per the donor's original intention for the land."
Fund cuts
The money from Thompson's donated land to Haumaru Housing's residential villages could not have come at a better time.
Auckland councillor Richard Hills said the project recently faced a funding cut of about $6m per year, or around $200 per week per resident.
"As a result, Haumaru Housing is now unable to take on additional tenants when legacy units become available."
News clippings of Roy Benjafield Thompson's donation to the council. Photo: Supplied / Benji Nathan
Hills said the cut was done for any particular reason.
"This will mean more empty senior housing units, as there will be extremely limited budget to refit and upgrade existing ones as tenants leave, let alone invest in any new ones."
He claimed Haumaru Housing received only three days' notice of the cuts. However, the Ministry of Housing and Urban Development (HUD) said Hills' comments did not accurately reflect the ministry's recent policy change.
"HUD has not 'cut' subsidies to Haumaru Housing or other Community Housing Providers (CHPs)," a spokesperson said.
"We have capped the number of redirects at current levels, so the income flow from Income-Related Rent Subsidies (IRRS) for CHPs like Haumaru Housing remains the same as it currently is."
The IRRS is paid by HUD to social housing landlords to cover the gap between what tenants pay and the market rent.
Redirects occur when a house, previously used for another purpose, becomes social housing. For example, a housing provider may turn a private rental into a social house and receive the subsidy.
Since July 2024, HUD only allowed new redirects in exceptional cases, to focus on building more new social houses.
"CHPs can replace tenants as needed but cannot increase the overall number of redirects," the HUD spokesperson said.
"There will be no displacement of existing social housing tenants due to this change."
The spokesperson added that Haumaru Housing could replace IRRS tenancies with new tenants as they become available, but it could not add more IRRS tenancies using its existing housing stock.
In a council meeting on Tuesday, Auckland Council principal advisor Rachel Wilson said the cuts came without warning.
"The central government funding change came without notice and after decision-making on the council's Long-Term Plan 2024-2034.
"Central government has advised that the change in funding criteria is to prioritise moving people out of emergency accommodation," Wilson said.
Manager of Auckland Council's CCO and external partnerships team, Alastair Cameron, said the council is advocating to central government, in liaison with Haumaru Housing and The Selwyn Foundation, to support the reinstatement of the funding.
"In the meantime, Haumaru Housing will be able to safely house existing tenants, but may be unable to take on additional tenants when units become available."
Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.