An agreement between the Ashburton District Council and Ashburton Housing & Support Trust will deliver up to 17 brand new housing units for the district's elderly residents.

The Council has agreed to lease the land it owns on the corner of Dobson Street, Cass Street and Mona Square in Ashburton for a nominal rent to the Ashburton Housing & Support Trust. The lease will allow the Trust to demolish eight existing, but deteriorating elderly person housing units and build up to 17 new ones in their place.

The Council has worked with existing tenants to find alternate Council housing.

Ashburton District Mayor Neil Brown says the arrangement is a positive outcome for the community that will help future-proof Mid Canterbury's stock of comfortable and affordable housing for older residents.

"The units on Mona Square are beginning to need major refurbishments. When the Trust approached us last year looking to grow their housing stocks, we could see the huge benefit this would have for our older residents in need of continued safe and affordable housing.

"This arrangement not only secures more housing for those in need, but is also a cost effective solution that will allow these worn out housing stocks to be upgraded at no expense to the Council, ratepayers or other Council elderly housing tenants."

Chairman of Ashburton Housing & Support Trust, Jackie Girvan says the Trust is delighted to be working with the Council to provide affordable housing for the elderly.

"Since the Trust's inception in May 2018, we have been looking for opportunities to expand our housing stock so that a greater number of people can benefit from what we do, and this project enables us to do that."

The Council currently provides 112 elderly person housing units across the district which are designed for older residents of limited means to live independently.

The eight Mona Square units are believed to have been built in the 1950s. While they are compliant with the Government's first tranche of healthy homes requirements, they are considered unsuitable for continued use in the future without considerable refurbishments.

The lease is for 50 years and development is expected to take place over several stages as the Trust secures funding, with five of the new units to be built within the first two years of the lease.​

The Trust will own and manage the new units and will be responsible for selecting tenants.​