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The future use of Rotorua’s remaining two non-contracted emergency housing motels hinges on “local demand”, as the Government exits the last of its contracted motels this year. 

At the peak of the Government’s controversial emergency housing response in Rotorua, it was using 62 motels and hotels, including 45 non-contracted, and 13 contracted with resource consents until December 2024. 

Two non-contracted motels remain in use, and the Ministry of Housing and Urban Development’s just-granted resource consent extensions for the last seven contracted motels will gradually expire this year. 

In his decision granting the consents, independent commissioner David Hill criticised the ministry’s exit strategy, saying it rested on “assumptions” about new builds and affordable rentals. 

He said there were 135 resident whānau in contracted motels as of October and an average of 24 referrals a month – 324 a year. The “anticipated pipeline” of 350 new social housing units would “only be sufficient if the 50% of exits to social or whānau housing” continued. 

Hill had seen “no actual evidence” to back up the ministry’s confidence it would be able to house all tenants - a concern community submitters shared. 

He had no “material indication from Kāinga Ora as to how advanced its construction programme is” or how the units would be allocated to those in the contracted motels. 

To address this concern, Hill required all new referrals to stop by June 30, which he expected would limit whānau in contracted motels to about 162 - a “perhaps more realistic” number. 

Independent commissioner David Hill at the resource consent submission hearing in November. Photo / Laura Smith 

Kāinga Ora Bay of Plenty regional director Darren Toy told Local Democracy Reporting about 325 new social houses were planned in Rotorua, with 230 to be delivered this year and 95 next year. The pipeline number had dropped from 350 as projects were completed. 

Ten planned developments totalling 64 houses were still being reviewed to ensure value for money and consider if there were better options for the sites. 

MHUD has said it was confident it could exit the contracted motels in line with the consent deadlines. 

Residents of Apollo Hotel, to be exited by March 3, had all moved to “suitable alternative accommodation”. 

In response to further Local Democracy Reporting questions, a spokesperson said about a third of contracted motel residents moving last year went to social housing. Others went to transitional housing, private rentals or whānau. 

Asked how the anticipated housing pipeline would impact motel exits and to respond to Hill’s comments, they said the ministry was “doing all it can to support” contracted emergency housing residents into suitable alternative housing. 

This included Kāinga Ora or community housing provider social housing, transitional housing and private rentals. 

If residents could not be placed, it would find other solutions case-by-case. 

“All residents in [contracted emergency housing] will be supported into some form of housing, with emergency housing remaining available to those who are eligible if required.” 

Fewer households in non-contracted motels 

The MHUD spokesperson said contracted emergency housing in motels was focused on supporting families with children, and included wrap-around support. 

Non-contracted emergency housing was also accommodation for those in urgent need, but was funded through Ministry of Social Development [MSD] emergency housing grants. 

MSD housing group general manager Karen Hocking said as of December 31 fewer than 15 households were living in two non-contracted Rotorua motels, down from 52 households the year before. 

It was working to get them into sustainable, longer-term housing. 

Local Democracy Reporting asked if the two non-contracted motels were accepting new tenants, if they would stop being used when the contracted motels did and how emergency housing would work when the contracted motels closed. 

Hocking said any remaining non-contracted emergency housing in Rotorua would depend on “local demand”. 

“While emergency housing will continue to be available for eligible clients in Rotorua, we will work with any clients to move them into more suitable housing.” 

As in other regions, people meeting certain criteria will have their options assessed. 

People need to exhaust all other options including staying with family or friends, seeking private rentals, or accepting other MSD support. 

“Emergency housing is a last resort.” 

The ministry could help pay rent arrears or bonds, negotiate with landlords to retain tenancies, and explore private rental options or transitional housing. 

“If people have a genuine housing need and continue to meet their responsibilities, they will continue to be eligible for emergency housing support. This will continue to be the case in Rotorua.” 

Public housing eligibility may also be assessed. 

Housing providers such as Kāinga Ora matched candidates to homes based on their priority rating and suitability for the homes on offer among other factors. 

Families with children in emergency housing more than 12 weeks took top priority under the rating system introduced by the Government last March. 

Local Democracy Reporting asked both ministries if the use of non-contracted motels would increase if other housing options were exhausted as the contracted motels closed. MHUD referred the query to MSD, which did not respond. 

Consent decision a ‘huge win’ - mayor 

Rotorua Mayor Tania Tapsell said the council was working to invest in infrastructure to unlock housing opportunities, and support community housing providers and developers to build affordable homes and rentals. 

Tapsell said she and housing minister Chris Bishop discussed the “need to support opportunities for a locally-led housing plan”, which was being prioritised. 

Rotorua mayor Tania Tapsell. Photo / Laura Smith 

“It’s a huge win to have turned Rotorua around and have certainty now that contracted emergency housing motels will soon be a problem of the past.” 

Tapsell said she and the community “fought really hard” to stop the motel use. 

“We’ve already reduced all types of emergency housing motels by around 80% and are grateful to the independent commissioner for his recent decision to ensure all contracted motels are gone by the end of this year.” 

She also thanked those who made submissions, and said the council looked forward to “continuing positive progress” on emergency housing in Rotorua. 

Laura Smith is a Local Democracy Reporting journalist based at the Rotorua Daily Post. She previously reported general news for the Otago Daily Times and Southland Express, and has been a journalist since 2019. 

LDR is local body journalism co-funded by RNZ and NZ On Air.