2 nov 1991 - ACC says Govt changes will cost more and increase discrimination

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The second largest Auckland landlord - the Auckland City Council - says Housing Corporation policy changes will cost it more and increase discrimination against ethnic groups and families.

The new Housing Corporation policy will provide housing assistance to low income people through an accommodation supplement paid by the Social Welfare Department.

All corporation rentals will rise to market levels and interest rates for existing loans will be adjusted to market rates.

For the council, the rise in interest rates to an expected 9 per cent when it comes into force on July 1, 1993, will cost the council at least $500,000 more.

The council has $3.9 million of Housing Corporation loans for pensioner housing and $9.8 million for other housing.

A report prepared by the council's social adviser, Jill McPherson, said its assistant property development manager, Mr Alan Peak, said the change in rental assistance payments fitted in well with the council's own policy.

It is phasing out the assistance it gives its tenants with the expectation the tenants will receive allowances from the Social Welfare Department.

All tenants will be eligible for a Social Welfare accommodation supplement but the Government does not intend increasing its present level of assistance.

"Because under the new policy many more households will be eligible, the level of assistance to those at present receiving help will inevitably decrease in some cases by substantial amounts," said the report.

The new policy would remove any distinction between pensioner housing and other housing and treat tenants of the state and council the same as tenants of private landlords.

The report said it was unclear whether the council would be able to continue to "discriminate" in favour of pensioners for what would no longer be pensioner housing.

The private sector would become more important as a rental accommodation provider. There were well-documented discriminatory practices in the sector against ethnic groups, families, children and pets. It would be harder for these groups to find accommodation as the public sector withdrew from the market.

The report said there would need to be a strengthening of legislation preventing discrimination on the grounds of age and against disadvantaged and minority groups.

The accommodation supplement will be 65 per cent of the difference between a fair market rental for a particular dwelling and a one-quarter of the total net household income.

Source: New housing policy will cost council.
399 words
2 November 1991
New Zealand Herald

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