Flooded home owners outraged over council's rejected proposal to keep more buyout cash

6:06 pm on 22 November 2023
Mayor Wayne Brown: Budget Proposal

Auckland Mayor Wayne Brown supported a sliding scale for taking contributions from flooded home buyout money, records show. Photo: RNZ / Marika Khabazi

Newly released documents reveal that Auckland's mayor at one point supported a plan to keep more than 5 percent of buyout money offered to some owners of flood-damaged homes.

But the proposal was later voted against and the majority of councillors instead opted to retain just 5 percent of each home's buyout.

Auckland Council plans to spend more than $700 million buying out about 700 flood-damaged homes.

Minutes from a confidential governing body meeting in early October showed 5 percent was the minimum suggested, with 10 percent for part of the home value between $1.5m and $3m, and 15 percent for the part of homes valued over $3m.

This means homeowners of higher value properties could be getting over $100,000 less on the buyout offer from the council.

The recommendation had come from the Storm Recovery Political Advisory Group and was discussed at the meeting.

Mayor Wayne Brown initially supported the original proposal for the sliding scale, and had voted against a resolution to replace it with a flat contribution rate of 5 percent for insured properties, and 20 percent for uninsured properties.

However, he later voted for the flat rate of 5 percent, along with the majority of other councillors.

Brown was unavailable for an interview.

A spokesperson from his office said his main considerations in supporting the 10 and 15 percent takes were fairness and reducing the burden on ratepayers.

Some flood-affected home owners in Auckland said they are disappointed that the council had considered taking more from struggling families.

One of the land slips that has forced evacuations and red or yellow stickered homes at Muriwai.

Dozens of home owners are awaiting word on their property's future. Photo: RNZ / Nick Monro

West Auckland Is Flooding group chairperson Lyall Carter is relieved it was not approved.

"You don't know where people are sitting financially, there may be a home that's on papers worth millions of dollars, but that could mean millions of dollars in a mortgage."

Carter, who represents at least over 200 flood-affected families in West Auckland, said there needs to be an equitable process for buyouts across different types of homes in different locations.

He said owners will not be pleased to find out that council had once discussed an even higher rate.

"This just adds to the mistrust between council and our people, it adds to a feeling of frustration and anger that we are not seen to be given prioritisation."

Carter said many owners feel they are bearing the consequences of under-maintained infrastructure, and are calling for the 5 percent contribution to be scrapped.

He said the owners will be selling their homes to council at January 2023 prices, only to go into a market that is already on the rise.

He fears many will struggle to purchase new homes in their community.

Aleysha Knowles, whose North Shore home was damaged by slips during the storms, said the 5 percent contribution already feels like a "kick in the gut".

She said it is disappointing to learn that it could have been even more.

"The sliding scale made it even more harsh and it's just really disappointing that they thought this was fair."

Amrita Aujla's home in West Auckland was flooded up to 2 metres high, and she is now waiting for categorisation and a buyout offer.

She said it is unfair that Aucklanders are expected to contribute 5 percent when similarly affected homes in Hawke's Bay are being offered a full buyout.

"Even with the 5 percent, I still have a mortgage to pay, I don't think I'll ever be able to buy a house again,

"I mean if you were considering 15 percent or whatever, that's just not fair, absolutely not fair."

Aujla said knowing that the council had considered a higher contribution from owners erodes her trust in the decision makers.

"The matter of fact that they actually even considered this, it breaks my heart, you know I have no confidence in the government anymore, unfortunately, not at the council, absolutely zero."

Council records show councillor Alf Filipaina voted against the 5 percent contribution.

Meanwhile, it could be many more months of waiting before hundreds of affected homeowners find out whether they will even be entitled to a buyout.

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