Rotorua’s mayor is worried scrapping minimum apartment size rules would allow motel rooms to be turned into housing.

The Government announced in July, as part of its Going for Housing Growth policies, it would scrap the ability for councils to set minimum floor areas and balcony requirements for apartments.

Housing Minister Chris Bishop highlighted the cost pressures size requirements can impose, therefore limiting the supply of lower-cost apartments.

“Evidence from 2015 shows that in the Auckland market, balcony size requirements increased the costs of an apartment by $40,000 to $70,000 per unit.”

Bishop said at the time, “Do you know what is smaller than a shoebox apartment? A car or an emergency housing motel room.”

Rotorua mayor Tania Tapsell said she was worried motels would be turned into housing if the minimum requirements were dropped.

Using motels for housing was something the council had been working to get away from, following years of Fenton St accommodation being used as emergency housing.

At a Rotorua Lakes Council community and district development committee meeting on Wednesday, Tapsell said it was important to provide better options during a time of increasingly unaffordable housing.

But she had “serious concerns” if there were to be no minimum apartment size.

“We’ve seen what’s happened down Fenton St with our motels.

“I think this would pose a very real risk that motel units that previously were not large enough to be a dwelling size could become legally acceptable ... is there anything else [the] council can be doing to protect these areas?”

She said she wanted to see areas used appropriately as it “continued to solve the issue of housing”.

Community and district development group manager Jean-Paul Gaston said housing was enabled along Fenton St, but its priority was a tourism zone.

He said the council had minimum apartment sizes that currently applied for any redevelopments of motels wanting to convert.

He said Tapsell was correct there was a risk and the council’s current rules “protect us from negative”.

Gaston said it was something the council would provide feedback on to the Government when it had the opportunity, as well as if it would consider if tier-two councils like Rotorua were excluded from that provision.

A council spokesman said after the meeting it aimed to ensure the community had the right kind of homes.

“Ones that are healthy, safe and suitable. Implementing the correct standards is crucial to achieving this goal.

“For instance, consider converting a motel into residential units. We have a minimum size for an apartment of 35sq m in size, and a one-bedroom unit must be at least 45sq m, plus additional living space requirements for the zone on Fenton St.”

These dimensions are “generally larger” than typical motel units.

“So, converting a motel into residential apartments would require significant reconfiguration to ensure that they achieve the expected standards for residential use.”

Tapsell told Local Democracy Reporting housing remained a priority for the council and it needed to support a range of good housing options for development.

“Motels haven’t been designed for long-term living, especially for families, so I would be seriously concerned if any Government legislation allowed motels to convert from short-term tourist accommodation to long-term housing.”

Tapsell understood there may be a need for “very small apartments” in big cities - she did not believe there was a strong need for it in Rotorua.

“Fenton St is one of the gateways to our city and we’ve been working hard to restore it.

“If Government rules allow residential development here, we’d want the quality and offering to match our reputation as a top tourism destination.”

Bishop said it was an incorrect assumption that removing minimum floor sizes for apartments will automatically lead to people living permanently in motel units.

“There are many other factors that take effect if a motel room was to be converted to long-term accommodation – for example, it would have to comply with the Building Act, the Housing Improvement Regulations, and if used for rental accommodation, the Healthy Homes Standards.

“In some cases changing from short-term to long-term accommodation would also require resource consent.”

Bishop said its programme addressed “root problems” that caused Rotorua’s housing crisis by enabling cities to grow up and out.

It wanted to see fewer people in emergency housing motels and was working to “make that a reality”.

Councils can provide feedback on the proposal early next year, with a final decision expected by mid-2025.

This story has been updated to include comments from Housing Minister Chris Bishop who was unavailable prior to initial publication.
Laura Smith is a Local Democracy Reporting journalist based at the Rotorua Daily Post. She previously reported general news for the Otago Daily Times and Southland Express, and has been a journalist since 2019.

LDR is local body journalism co-funded by RNZ and NZ On Air.