Four bodies were recovered yesterday, after the blaze in the Wellington suburb of Newtown on Monday night.
In a statement, acting Wellington District Commander Inspector Dion Bennett said police were now working to formally identify the fifth victim, along with the four recovered yesterday.
Bennett said police teams were still working on a detailed forensic scene examination, which is expected to extend into next week.
"Our staff are also continuing to contact families of those who were staying at Loafers Lodge who have been accounted for, so we can reassure them their loved ones are safe."
The number of those accounted for remains at 99, and police have said the number of dead is less than 10, although a definite death toll has not yet been established.
"If you have made a report to police of a missing loved one, and have since made contact with them, please get in touch with police and quote Operation Rose," Bennett said.
A 48-year-old man was arrested on Thursday and charged with two counts of arson - one in relation to a couch fire on the third floor of the hostel on Monday night and the second in relation to the blaze set on the building itself.
He appeared in the Wellington District Court yesterday, where the judge ordered he be given interim name suppression.
Fire Service advised against Loafers Lodge building consent
The Fire Service did not support a building consent application for an extension to Loafers Lodge, now the scene of a deadly blaze, claiming the proposal did "not demonstrate that any level of safety has been provided."
Wellington City Archives documents reveal the Fire Service, now Fire and Emergency New Zealand (FENZ), raised serious concerns about the building’s safety.
This was after property owner Rehslew Investments applied to extend the hostel accommodation.
A 2006 memo shows the Fire Service was worried about the escape route to the building’s second staircase because sleeping occupants would have to make their way through the dining room, kitchen, and lounge area to get to it.
The Fire Service listed several other issues including that the building effectively functioned like a hotel. It questioned the "level of cooperation and mutual assistance" of the occupants in the event of a fire.
A 2007 memo from the Fire Service said the council should reject the consent application. It said it had not seen evidence that the concerns raised in 2006 had been addressed.
Concerns were also raised that parts of the building’s fire alarm systems were not up to standard.
The Fire Service claimed another expert opinion that the proposed fire system met the Building Code was completely unsupported.
"No discussion or analysis is provided that demonstrates compliance with anything, let alone the Building Code, has been achieved."
"There is simply no justification provided to support this proposal, and the submission does not demonstrate that any level of safety has been provided."
At one point a consultant noted it was the fourth time he had replied to questions from the council about the project.
"Each reply appears to delay the approval of the building consent. Can we please have a meeting urgently to resolve the issues," he said.
After seeking further information, the peer review, and other expert advice that the fire system was compliant, the council granted the consent.
Wellington City Council chief planning officer Liam Hodgetts said the building has certificates of code compliance for all previous building consents.
"We have a Building Consent and a Certificate of Acceptance application in our system for work that was being carried out at the time of the fire. The building has a current Building Warrant of Fitness.
"Beyond that it is not possible for us to respond in detail right now to events that happened over 15 years ago."
FENZ risk reduction and investigations manager Pete Gallagher said there will be comprehensive investigations into all aspects of the Loafers Lodge fire, including an operational review.
"Part of this work will involve an in-depth look at Fire and Emergency’s history with the building, including how the building behaved in the fire and how fire safety systems worked – including evacuation schemes.
"It’s too early to talk about the building’s evacuation scheme history as this will be covered in the review."
Additional reporting The New Zealand Herald