Motels become band-aid solution to housing crisis acutely felt in Hawke's Bay

Wednesday, 23 January 2019

Social agencies are bemoaning the lack of affordable housing available to low-income earners in Hawke's Bay, with many forced to take emergency shelter in motels paid for by the state.

Those living in Work and Income's East Coast region - which includes Hawke's Bay and Gisborne - have asked for Government help for emergency accommodation in greater numbers than every other region except Auckland Metro.

The Government is blaming the region's acute housing shortage on factors including homelessness, the scourge of meth and the reintegration of offenders back into the community.

Ministry of Social Development figures released under the Official Information Act show 5480 Special Needs Grants for emergency housing were given to East Coast people between December 2016 and June 2018.

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Salvation Army community engagement team leader Lynda Otter says people on low incomes 'aren't getting a look in', as Hawke's Bay tenants look for financial certainty in prospective tenants.

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The grants - used to pay for motels and temporary accommodation - equated to $5.01 million - more than Waikato ($4.6m), Wellington ($3.19m), Northland ($2m) and Canterbury ($1.42m).

With the largest population base in the country, it was not surprising Auckland Metro received the most assistance at $34.8m, contributing to a national total of $61.7m from 60,238 grants in a year-and-a-half.

However, East Coast's prominent position on the list was noteworthy.

Rental housing demand in Hawke's Bay is far outstripping supply, making it challenging for low-income earners to find a place to live. (File photo)

Salvation Army community engagement team leader Lynda Otter, who works at the coalface of the problem in Napier, said demand for affordable housing had rapidly increased in the past few years.

'It's especially hard if you're unemployed or on a low wage - and we have quite a high population of people on low incomes or unemployed.

Ministry of Housing and Urban Development's deputy chief of public housing supply Scott Gallacher acknowledges that housing costs are 'becoming increasingly unaffordable for many New Zealanders. (File photo)

'You go to flat viewings and there's a lot of people applying for a flat. Landlords want the guarantee of people on a steady income, so if you're unemployed, you just don't get a look in,' Otter said.

Hastings Budget Advisory Service financial mentor Yvonne Dickey said with as many as 40 individuals or groups turning up at each flat viewing, competition was fierce.

The Ministry of Social Development introduced the Emergency Housing Special Needs Grant in July 2016. The grants are paid directly to the accommodation provider, with assistance generally given for up to seven nights. (File photo)

'There's just no rental stock,' Dickey said.

Because the region relied on high numbers of seasonal workers, that created significant pressure on motels and rental properties and, ultimately, affected long-term rental availability.

'In terms of emergency housing, it's even hard for clients to get into motels when the season is on,' Dickey said.

'A lot of people now have gone to look for rentals outside of the city in places like Waipukurau, but even the stock out there is limited.'

In December, 18,231 East Coast people drew a main benefit, about 2100 more than in the March 2018 quarter.

While acknowledging the 'complex interaction of economic, demographic and housing supply issues' which underpin the national housing shortage, MSD acting regional commissioner Naomi Whitewood said East Coast had its own issues.

'A high proportion of the people on the Social Housing Register [there] are living in insecure housing - accommodation that is unsuitable on a long-term basis.

'The demand for housing is compounded during the summer period when high visitor numbers are drawn to the region,' Whitewood said.

Emergency housing grants did not need to be paid back, and were available for those awaiting placement in long-term public housing, with assistance generally given for up to seven nights.

Ministry of Housing and Urban Development spokesman Scott Gallacher conceded public housing supply fell short of what was needed.

'While we work to increase supply, our priority is that all New Zealanders have access to somewhere warm, dry and safe to live, and are not sleeping in a car or on the street.

'Our preferred option is to place people into long-term public housing, or Transitional Housing [short-term accommodation].'