PHOTO: FILE
Rotorua Housing Update: Government to Exit Emergency Housing Motels as Future Use Hinges on Local Demand
The future of Rotorua’s remaining non-contracted emergency housing motels is uncertain, with the Ministry of Housing and Urban Development (MHUD) indicating that their continued use will depend on local demand. This comes as the government prepares to exit the last of its contracted emergency housing motels by the end of 2024.
At the peak of New Zealand’s controversial emergency housing response, Rotorua had up to 62 motels and hotels in use, with 45 being non-contracted and 13 contracted with resource consents. As the government exits its contracted motels this year, two non-contracted motels in Rotorua remain in use, while the Ministry has secured resource consent extensions for the last seven contracted motels, which will gradually expire throughout 2024.
Concerns Over Housing Exit Strategy and New Builds
Independent commissioner David Hill, who granted the consent extensions, expressed concerns over the MHUD’s exit strategy. Hill criticized the ministry’s reliance on assumptions about new builds and affordable rentals, stating there was no tangible evidence to support the ministry’s confidence in accommodating all tenants. As of October 2024, 135 whānau (families) resided in contracted motels, with an average of 24 new referrals per month, translating to 324 referrals annually. While the Ministry anticipates the addition of 350 new social housing units in Rotorua, Hill warned that the pipeline would only suffice if half of the tenants moved into social housing.
Hill also pointed out that Kāinga Ora, the government agency responsible for social housing, had not provided adequate evidence about the progress of its construction programme. As a result, Hill required the MHUD to halt new referrals by June 30, 2024, which he believed would help limit the number of families in contracted motels to around 162.
New Social Housing Developments in Rotorua
Kāinga Ora’s Bay of Plenty regional director, Darren Toy, confirmed that approximately 325 new social housing units are planned for Rotorua, with 230 expected to be delivered in 2024 and the remaining 95 slated for completion in 2025. However, some planned developments are still under review to ensure they provide value for money.
Despite the progress in new social housing, MHUD remains confident that it can meet the December deadlines for exiting the contracted motels. The residents of Apollo Hotel, one of the contracted motels set to be exited by March 2024, have already been moved to “suitable alternative accommodation.”
Non-Contracted Motels: Future Use Uncertain
The number of households in non-contracted motels in Rotorua has significantly decreased over the past year. As of December 2024, fewer than 15 households were residing in two non-contracted motels, down from 52 the previous year. The Ministry of Social Development (MSD), which funds non-contracted emergency housing, is working to help these families transition into more sustainable housing options.
MSD’s General Manager, Karen Hocking, explained that the future of these non-contracted motels would depend on “local demand.” She stated that while emergency housing remains available for eligible clients, the Ministry would prioritize moving families into more permanent and suitable housing solutions.
Emergency housing in Rotorua, as in other regions, is seen as a last resort, with MSD encouraging individuals to explore all other housing options before turning to emergency accommodation. The Ministry also provides support for rent arrears, bond payments, and other transitional housing solutions when necessary.
Rotorua’s Housing Strategy: A Shift Towards Local Solutions
Rotorua Mayor Tania Tapsell hailed the recent decisions as a “huge win” for the community, noting that the city has already reduced its reliance on emergency housing motels by approximately 80%. Tapsell emphasized the importance of locally-led housing solutions, with a focus on investing in infrastructure to unlock housing opportunities and support the construction of affordable homes.
Tapsell also expressed gratitude to the independent commissioner for his decision, which ensures the exit of all contracted emergency housing motels by the end of 2024. She stated that the community’s efforts to limit the use of motels for emergency housing have been successful, and she looks forward to continued positive progress in Rotorua’s housing sector.
As the government works to exit contracted emergency housing motels and expand social housing options, the future of Rotorua’s housing market will rely heavily on local demand and the successful delivery of new housing developments.
SOURCE: 1NEWS