Voluntary property buy-out office to close with programme complete

A year on from opening, the Cyclone Gabrielle voluntary buy-out office’s work is done, and it is being closed with just four offers to finalise.

In October last year the office was opened to manage the Category 3 Voluntary Buy-out Programme to provide eligible Category 3 property owners in Napier and Hastings with pathways to resettle in safer areas. The programme offered homeowners full property purchases or relocation grants, depending on the size of the land.

Of 327 properties deemed to be Category 3 across Hastings and Napier, 167 were eligible for buy-outs (153 in Hastings and 14 in Napier). The programme has been funded 50/50 by Government and the council of the area the property is in.

In Hastings, it was estimated it would cost the Crown and Council about $50m each to deliver the programme, with the aim of completing the process within a year.

Hastings District Council recovery manager Gus Charteris said it was pleasing the programme had been substantially delivered within the allocated time and budget.

“Currently there are only four offers left to be made. These properties have some unique characteristics and complexities that may require our support beyond the closure of the office.

“We are very proud of what’s been achieved by this office to help property owners get through this difficult process and gain some certainty about their future.”

Dwellings that have been purchased through this process are being relocated or demolished, with that phase of the work expected to be completed by the end of the year, said Mr Charteris.

Hastings mayor Sandra Hazlehurst said the conclusion of this complex process was a significant step in the ongoing recovery from the cyclone.

“This has been extremely challenging for our people who have been impacted by the cyclone. For those who took part in the voluntary buy-out process, we hope the outcome allows them to move on with their lives, and we appreciate their patience in working with our team.”

Napier mayor Kirsten Wise said that “reaching the end of this process marks an important step in strengthening our region's resilience.

“While community safety remains at the heart of these efforts, we also recognise the difficult journey that has been experienced by those directly impacted”.

To date, 24 properties have been acquired through full property purchases. The rest of the properties have been kept by the owners who have accepted relocation grants, enabling them to keep the land but live elsewhere.

The councils are in the process of disposing of these properties and dwellings, with the aim of maximising the productive use of the land and reducing the cost of the programme to ratepayers by obtaining fair market value for the properties.

To date, five properties and a number of dwellings have been sold or are awaiting settlement, negotiations are underway on others, and a bundle of properties are about to be taken to market.

Initially interest is being sought from neighbours of these properties where productive activity is already taking place. In these cases, agreement on a fair market price must be reached and this is being guided by independent market valuations.

12 November 2024

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