Wellington Expands Office-to-Housing Scheme for Affordable Living
Developers of houses along with the Wellington City Council mention that the Te Kāinga affordable housing initiative is progressing steadily towards generating 1500 new apartments within downtown Wellington by the year 2033.
Property developer Ian Cassels stated that this initiative serves as an essential launchpad for stimulating expansion in the capital city.
Initially suggested in 2018 by former Mayor Justin Lester, Te Kāinga entailed developers transforming vacant office spaces into living quarters. The council would subsequently assume a long-term lease and function as the building’s property manager.
The scheme was designed to be "cost neutral" to ratepayers - with building owners paying to maintain the buildings - while a property management fee covered the council's cost of managing tenants.
Expanding a local authority initiative by utilizing commercial buildings for cost-effective accommodation (15 min 40 sec)
The good start of the program led the council to increase their original target of 1000 new apartments to 1500 by 2033.
Plan might attract 30,000 individuals to downtown area - Cassels
The Wellington Company, owned by Ian Cassels' development firm, held ownership of two out of the three buildings presently operational under the plan.
"Unless we get people living in the city, the city has no other way to grow again easily.
Should we add 30,000 individuals to Wellington’s population over the coming decade – as seems highly probable – constructing light rail, costing four billion dollars to move folks between downtown and the outskirts, might become unnecessary. Instead of relying on such an expensive project, why not encourage pedestrians to navigate the city on foot?
"The level of housing density is what counts for the nation – something we’re lacking – but Wellington is where it can happen," Cassels said to 'sصندキャンペ Nine to Noon .
Cassels expressed confidence that the city’s vacant offices could easily house an extra 30,000 people.
"The city swells to a 108,000 people on a workday. A lot of them occupy high rise buildings. A lot of [those] are now are not occupied. There's going to be space."
Cassels said buildings were selected for their central locations, good light and air and seismic integrity.
He mentioned that his firm would only buy buildings for renovation if they meet a New Building Standard (NBS) higher than 67 percent. In contrast, every lease agreement under the council’s program demands a minimum earthquake resilience level of 80 percent.
Choice for extended lease agreements to provide 'tenure security' for city residents - WCC
Paul McCorry, the Wellington City Council (WCC) manager for housing development, stated that this initiative aims to support the workforce needs of the growing creative and startup enterprises in the city.
He stated that this initiative targets individuals residing and employed within the urban area. The local council has decided to prioritize those contributing to industry growth within the city limits. This includes people involved in fields such as arts, startups, and hospitality.
McCorry stated that extended lease terms would provide a sense of stability often absent from urban area rentals.
There could be a lengthy lease agreement with a landlord lasting up to 20 years, and we truly hope that anyone moving into our properties has the option for flexibility—so if they wish to stay there for all those 20 years as well, they're able to do so.
He mentioned it’s about ensuring individuals have secure housing, providing them with a solid base so they can focus on the rest of their life and have a robust home supporting them.
Affordable homes without affecting ratepayers - WCC
McCorry stated that a property management fee paid by the building owners ensured the program could run without affecting ratepayers.
We've committed to a lengthy lease agreement enabling building owners to apply a rental rate below current market value, and this lower rent will then be passed along to our tenants.
"We have a small tenancy management team and [building owners] provide a management fee as well, which covers the cost of those employees which are looking after our tenants, and makes sure that the whole thing is cost neutral," McCorry said.
The scheme could act as "proof of concept" - for other councils looking to boost urban living - at home and abroad, he said.
Other councils have reached out to us due to their interest in the program since they recognize some of the achievements we've had.
For instance, Melbourne conducted recent research where they pinpointed 86 buildings within their central business district that could be converted.
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