Photo: RNZ / Cole Eastham-Farrelly
Owners of homes affected by flooding and Cyclone Gabrielle are set to receive payments towards their temporary accommodation after months of calls from residents stuck paying rent on top of mortgages.
The government has announced weekly payments, equivalent to the average rent declared by Accommodation Supplement recipients in that region, to be paid directly to homeowners from 4 September.
It comes after calls for help from Auckland and East Coast communities, some of whom have been forced to find accommodation in the private rental market due to a shortage of Temporary Accommodation Service (TAS) houses.
Most insurance policies provide a set amount of money towards rent if a home becomes unlivable.
But a community group in Muriwai, Auckland told RNZ a survey of red-stickered residents showed just under half said they would run out of temporary accommodation money by August - and many were still paying mortgages on their damaged homes.
Recent interest rate hikes have seen these payments increase by up to $1600 a month.
The government said as of 13 June, there had been 3884 properties red or yellow stickered.
A home in Esk Valley damaged by Cyclone Gabrielle. Photo: Tom Kitchin
Minister for Social Development and Employment Carmel Sepuloni said these payments, known as North Island Weather Events - Temporary Accommodation Assistance (NIWE TAA), would help bridge the gap until homes were repaired or condemned.
These payments would not be means-tested (adjusted based on income), were not taxable and would not affect Working for Families payments. People could contact the Ministry of Social Development from 21 August to book an appointment.
Sepuloni said it was similar to a scheme put in place after the Canterbury earthquakes.
It would be funded by moving $10 million from the Vote Building and Construction (Temporary Accommodation Service) fund to the Vote Social Development fund in the 2023/24 financial year.
She said after picking up the Auckland portfolio, she visited areas impacted by the extreme weather events.
"Having talked informally to many residents, it's clear that they need and deserve certainty so that they can plan, recover, and get back to a sense of normality."
She confirmed this scheme had been in the works since before Michael Wood lost the Auckland portfolio.
"If a longer-term solution is needed there is work underway on what that might look like. In the meantime, the interim payment will give displaced homeowners the certainty and confidence they need to plan ahead."
Eligible homeowners could receive a lump-sum payment covering them from as early as 1 June, to ensure that there was no gap in support.
Photo: Supplied / NZ government
To be eligible you must:
- be displaced from your home as it has been red/yellow stickered as a result of the "North Island Weather Events"
- continue to have costs associated with your damaged home (e.g., mortgage, rates, insurance etc)
- have previously been receiving payment for temporary accommodation from your insurer but are no longer receiving this payment
- not currently be in TAS supplied accommodation, but you must be registered
- not be receiving another government payment for your temporary accommodation costs in the same property (such as the Accommodation Supplement or the Student Allowance Accommodation Benefit)
What's not covered?
- Costs of commercial accommodation (such as motels and hotels) -- this payment is intended for people living in private rentals
- homeowners currently receiving payment for temporary accommodation from their insurer (and where the affected homeowner received an upfront lump sum from their insurer, they will not be eligible for this payment until that runs out)
- homeowners receiving the Accommodation Supplement or the Student Allowance Accommodation Benefit
