Well, Tauranga’s Bella Vista debacle stumbles on with the Council announcing its plans to compensate the 21 property owners caught up in a schemozzle of a project.
And true to this story’s form, it’s got people up in arms.
At its essence, the council deal is the cost of the house they purchased about 3 years ago plus around $10,000 - that’s to cover expenses. You know, lawyers, engineers and the like.
The homeowners had already said they wanted market value and so this sort of deal was never going to make them happy. And of course, that’s the market value of a house that was actually worth anything, because the current market value of the Bella Vista development is approximately nothing, zilch, five-eighths of F.A.
And the $10,000 is a bit of a slap in the face because could you put a value on the homelessness of 2 years, the insecurity of whether your entire life savings have been destroyed, the fear that you owe a house load of money but have no house? 2 years of staying still. Actually no. 2 years of going backwards.
Some residents have already filed documents in the High Court against the council, seeking damages of $50,000 per property plus costs and damages and who would blame them.
From my point of view, the council failed miserably in its job. But the developer did too. No one from the council told him to buy that land or develop that land or do an entirely unsatisfactory job. He built unliveable homes.
Bella Vista Homes director Danny Cancian got my goat when he said the council never asked him to complete geotechnical reports that were required under its rules. That may be true but at the end of the day, Danny did not follow the rules in the first place. He was building the houses. The houses he built were condemned. And how much compensation is he paying? Well, nothing.
It’s a mess.
And as I heard some of the heartbroken homeowners this morning I also thought how much blame rests at New Zealand’s entire housing market and the continuing belief in the myth of the affordable family home.
These were half million dollar houses. The affordable home. And they got exactly what 500,000 buys you in Tauranga. Unliveable homes on unstable ground, facing South, living cheek by jowl. I have almost no doubt in my mind that if the foundations had worked we would have found that the buildings were leaking and mould ridden within months.
3 years later the affordable house in metropolitan areas is assessed by the government to be 650,000 dollars. 150 grand more. The government wants to build 10,000 a year of these and 100,000 in a decade. So here’s the question.
Do you have any confidence that the houses they’re building will be any better than the houses built at Bella Vista?
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