Rents are likely to rise for tenants in Waitaki District Council-owned community housing from September 1, the first increase since July 2004.
Tenants will pay an extra $5 a week, but that increase will have to be formally approved by the council as part of its annual plan on June 24.
Once approved, each of the tenants in the 108 units at Palmerston, Hampden and Oamaru would be individually notified by letter of the rise.
The increase is needed because of increased costs in running the units, which has resulted in the community housing account running at a deficit.
About five years ago, the council separated out the community housing account from general funds to ensure rent paid by tenants went back into maintaining and improving the units.
Before that, other ratepayers subsidised the cost of running the units.
The council's property manager, Dougall McIntyre, said rents for the units at present ranged from $60 to $90 a week, depending on their location, standard, and single or double occupancy.
The council has been refurbishing the units, including those at Palmerston and some in Oamaru.
The council collected about $357,000 a year in rents and the increase would add about $26,000 a year, depending on occupancy.
The units jointly pay $65,500 a year in rates to the council, with the rest of the income being spent on refurbishment, repairs, deferred maintenance and depreciation.
The majority of the units are in Oamaru, but there are three at Hampden and 22 at Palmerston.