28 Jul 2023

Rates remission announcement a relief for flood-affected Auckland homeowners

9:59 am on 28 July 2023
One of the land slips that has forced evacuations and red or yellow stickered homes at Muriwai.

Muriwai residents whose homes were left uninhabitable by the summer storms say the council's rates relief announcement, while welcome, was 'a long time coming'. Photo: RNZ / Nick Monro

Aucklanders whose homes are uninhabitable due to the summer storms say they are relieved with the rates relief agreed by Auckland Council, but their situation remains stressful.

The council yesterday agreed to reopen the Emergency Relief Fund and increase it by $1 million to enable affected residents' rates to be waived for at least a year.

A council spokesperson said all red-stickered properties would be eligible for the rates relief, as well as those yellow- and white-stickered properties that are uninhabitable.

An estimated 327 to 836 properties could meet the criteria.

Auckland's deputy mayor Desley Simpson told RNZ in an emailed statement the rates relief, which would be extended into the 2024/2025 year for properties that remained uninhabitable "as at 30 June 2024", was "the right thing to do".

Auckland Deputy Mayor Desley Simpson

Auckland deputy mayor Desley Simpson. Photo: RNZ / Nick Monro

"The money we are talking about is not a huge sum in the context of council's budgets," she said.

"The council estimates that the cost of these remissions is estimated to be between $1.2 and $3.0 million in 2023/2024."

Simpson said the governing body had agreed to provide "a 100 percent rates remission for 2023/2024 for properties uninhabitable as a result of recent severe weather events with a further remission of 100 percent in 2024/2025 for properties that remain uninhabitable as at 30 June 2024".

"I hope this is some good news for those homeowners."

'We've been struggling'

Chairperson of the Muriwai Stickered Residents Group Mike Hibbert told Morning Report local affected residents were "really pleased" at the announcement, which had been "a long time coming".

"We're really thrilled to see the council step up and provide this help," he said.

"We've been struggling with the council on rates remission for many months."

A letter to Muriwai residents said those with uninhabitable properties would not need to pay rates between July this year and June next year.

But Hibbert said while affected residents were "stoked" at the rates relief, many of them were still struggling to meet other costs associated with their homes being uninhabitable.

"We're still paying two power bills on two houses, mortgages, rents, replacement costs for contents that haven't been paid out by insurance..."

Meeting those costs was an ongoing stress, he said, with both emotional and financial implications for those affected.

"It's really, really tough."

Hibbert said while the government's moves to provide "some kind of accommodation supplement to off-set our rent, going forward" was welcome, it would not meet all affected residents' rental costs.

"Unfortunately even that proposal from the government doesn't cover us 100 percent, it's only about 80 percent of our rental needs."

"It's just a constant downhill grind financially, it's really, really rough."

Hibbert said in addition to the rates relief, it would be nice to see banks offer affected residents some form of interest rates relief, and insurance companies be "more generous with paying out on contents insurance we've claimed for that hasn't been paid out for".

The costs of disconnecting and reconnecting power could also add up, he said, and the group was "about to get in touch with all the power companies and check on what they can do to mitigate those costs".

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