Homeowners in Heretaunga/Hastings who are eligible for the council's voluntary buyout scheme won't have to pay demolition costs, councillors confirmed on Tuesday.
The news came after Hastings District Council met to decide on the buyout terms for homeowners in Category 3.
Mayor Sandra Hazlehurst cast the deciding vote, after councillors were split 6-6.
After the hui, Hazlehurst said it was "very difficult decision" but it was "absolutely appropriate" that the issue was raised with the council.
"We must balance the needs of our most affected residents with those of the ratepayers," she added.
Today's decision means ratepayers will now foot the bill for 160 home demolitions.
"I can advise that we are continuing discussions with Government on the possibility of a contribution to this cost," Hazlehurst said.
Back in August, the previous Government agreed with Te Matau a Māui/Hawke's Bay councils to split the cost 50-50 of buyouts for red-zoned homes.
But there was no agreement on home demolitions.
The amounts agreed upon last year were:
- $203.5 million for flood protection;
- $260 million for transport; and
- $92.5 million for property buyouts.
An Independent Advisory Panel (IAP) was tasked with briefing councillors on any offers made, assessing their quality assurance, and making recommendations if any special circumstances applied.
The IAP also had to ensure the principles of the Category 3 buyout policy were adhered to, which includes "ensuring fairness for both those directly affected and the general ratepayer".
The council had recently been trying to change its Category 3 buyout policy.
It met three weeks ago to discuss a new report that proposed allowing the council to "recover a contribution from property owners in certain cases" towards demolition costs.
At that meeting, Hazlehurst asked eligible homeowners to send in their feedback to the council.
If councillors had agreed to those changes, it would've meant uninsured homeowners had to contribute to demolition costs.
In addition, it would've meant insured homeowners who had an insurance payout plus a council offer to buy their land or pay for home relocation, would have exceeded the property's market value as it was in February 2023.
The council delayed the decision until today in order to get more information and to hear public feedback.
Of the 160 eligible homeowners, 23 people submitted, and all were opposed to changing the Category 3 buyout policy.
"It was accepted at the time of the policy development that the costs of demolition would fall on council," said Hazlehurst.
"Council by a majority decision deems that it is most appropriate to remain with the substance of the community consultation."
