Developers are being asked to step up to help solve Wellington's housing crisis by redeveloping inner-city buildings into social housing and affordable apartments.
Community housing providers are also being urged by Wellington City Council to convert existing under-utilised buildings.
The approach would be similar to that taken by developers who had retrofitted buildings into hotels or student accommodation in the city.
The council plans to work with building owners to accelerate development by, leasing the buildings itself for 15 to 20 years and acting as landlord, and making a one-stop shop consenting available for the project.
The plan will be to develop one and two bedroom units in buildings above 67 per cent of the National Building Standard for seismic performance.
Deputy Mayor and housing portfolio leader, Paul Eagle, said he expected the plan would pay for itself over the lifetime of the project.
Community housing providers could manage the tenancies for social housing and seek to access income related rent support to help people into homes, he said.
"Costs will be dependent on the number of housing units we can get developed under the initiative. But it is expected that the housing provided will be cost neutral for ratepayers in the long-term, as building owners will pay for the refurbishment and tenants will pay for rents."
The city is constrained in its ability to grow out so needed to grow up, and that meant greater intensification in the inner city, he said.
Wellington Mayor Justin Lester said housing was the biggest issue facing the city and bold action needed to be taken.
"That's why we're looking at a new way of providing homes in the central city."
Lester, who was speaking at the Community Housing Association Annual Conference on Wednesday, said he expected some would be social housing managed by community housing providers, while others will be affordable rentals targeted to the lower end of the market.
"We will be able to retrofit existing inner city buildings and turn them into warm, safe, dry apartments."
The council would be requesting proposals from developers later this year.
"We'll provide more housing options for people who need it, and add vibrancy to our central city."
The apartments would address another issue in Wellington – the relatively low quality of much of the private rental stock.
"We'll be the only council in the country proactively adding warm, dry, affordable rentals for people in the private market, as well as further increasing the supply of social housing."
Wellington developer and engineer Maurice Clark, who has converted four buildings in the city into student accommodation, said it was a good move.
Converting into apartments could be tricky, but was generally doable, he said.
He would consider taking up the council's offer. However developers would require certainty of rent and take out, he said.
"Affordable and social can be done if someone can guarantee tenants."
Property investor Alex Cassells, who is currently converting the Sharp building on Taranaki St into 42 apartments, said he would be interested if the right opportunity presented itself.
Developers would be looking for long-term leases and the guarantee of income, he said.
There was "reasonable" stock in the city for conversions, particularly in Te Aro, which he believed would be popular with young people and families.
Wellington Chamber of Commerce chief executive John Milford said for investors it would be a numbers game.
He was encouraged by the adaptation of the student model that was already in place.
"The fact is we need more accommodation for students, families and people who want to work in the city. I applaud the council for coming up with an option to meet the potential need."
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