By the Explore Whanganui news desk · Published Thursday 12 November 2026
Whanganui District Council wants early views on how its 275 homes for older people should be funded, with rent no longer covering the cost. A short survey is open until Sunday 22 November.
- Deadline
- Survey closes Sunday 22 November
- What
- Early feedback on the role and funding of the council's older persons' housing
- What to do
- Fill in the short survey on the council website
The council has run low-cost housing for older people since 1947, aimed at people on low to moderate incomes. Tenants’ rent has traditionally paid for the service, and rates have not been used. That arrangement no longer balances, and the council says the gap grows each year it carries on as it is.
Where the money falls short
For 2026/27 the council has budgeted about $2.3 million in rent against roughly $2.8 million in operating costs. The shortfall, around $490,000, is being borrowed.
According to the council’s Have Your Say page on the issue, yearly shortfalls over the past four financial years ranged from about $260,000 to $570,000, and housing debt is forecast to reach $5.71 million by 30 June 2027.
Once that debt and the work the homes need are counted, the council estimates the service needs about $3.8 million a year, roughly $1.5 million more than current rental income.
Rents are deliberately kept low. Council policy ties them to net New Zealand Superannuation, capped at up to 32 percent for a single-person unit and 27 percent for a double unit.
The options on the table
The Have Your Say page weighs up the choices: raising rents (which would need a policy change and could make the homes less affordable), using rates so the wider community shares the cost, continuing to borrow and pushing the debt into the future, or changing how the homes are owned, managed or run.
The council’s release names an independent housing trust as one option at this early stage, though the Have Your Say page says no decision has been made to move the homes to a trust.
The council says its priority is that tenants can keep living in the homes, though the way the service is paid for is likely to change. “No decisions have been made about the future funding or ownership of the homes,” Mayor Andrew Tripe said in the council’s release.
What happens next
Feedback will be used to shape options for the council’s 2027-2037 long-term plan, which will then go out for formal consultation. To have your say now, complete the short survey on the council website before it closes on Sunday 22 November.
- Whanganui District Council: Council seeks community views on older persons' housing, released 4 November 2026
- Have Your Say Whanganui: Older persons' housing (long-term plan 2027-2037), released 4 November 2026
Explore Whanganui news desk: news@explorewhanganui.co.nz. Spotted something wrong? Tell us and we’ll correct it.
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