A Christchurch social housing provider has been billing the taxpayer – and tenants – more than it should by claiming dated, uninsulated flats are "A grade".
The Ōtautahi Community Housing Trust (OCHT), the organisation which manages the Christchurch City Council's 2400 social housing flats, receives more than $73,000 in Government funding each week.
The Ministry of Social Development money covers rent subsidies for 480 eligible tenants.
The country's social housing regulator, the Community Housing Regulatory Authority, has raised concerns about whether OCHT is "trustworthy" after investigating a complaint from a couple the Tenancy Tribunal found were being charged $50 a week more than they should.
Kere Cookson-Ua and Tracy Collyer paid $300 a week rent for their 38sqm, uninsulated and "somewhat dated" unit. That transpired to be the full market value, despite OCHT's handbook saying the most they should pay is 70 per cent of market value (OCHT has since removed this paragraph, claiming misinterpretation).
The tribunal found the full market value should have been rated $250, meaning the couple should pay $175 – and the authority agreed.
Now, figures released to Stuff under the Official Information Act show at least 12 other units at the Maurice Carter Courts complex in Spreydon have been over-valued; meaning both the tenants and ministry are paying the trust too much.
They show OCHT claimed funding from the ministry based on desktop valuations from Knight Frank that said market rate for an "A-grade" single bedroom flat was $294 a week
Click below to watch Stuff.co.nz Interview…