Infrastructure funding unlocks 8000 new homes

  • Seven centres first to get Government housing infrastructure funding, enabling over 8,000 more new homes to be built
  • New homes to be enabled in Rotorua, Ōmokoroa, Kaikōura, Ōtaki, Napier, Gisborne and New Plymouth
  • 28 further projects undergoing due diligence and negotiations for allocation from $1 billion Infrastructure Acceleration Fund
  • Review to modernise Building Consent System kicks off

Seven centres around the country have secured Government funding for groundwork infrastructure like pipes and roads that will enable over 8,000 new homes to be built, Housing Minister Dr Megan Woods announced in Ōtaki today.

“The Government’s Infrastructure Acceleration Fund was set up to jump-start housing developments by funding the necessary services, like roads and pipes to homes, which are currently holding up development,” Megan Woods said.

“Investment in infrastructure is a key action the Government is undertaking to increase the supply of housing in the medium term, and today’s funding unlocks over 8000 new homes in developments across Rotorua, Ōmokoroa, Kaikōura, Ōtaki, Napier, Gisborne and New Plymouth.

“Key projects will include works such as extensive stormwater management in both Rotorua and Napier, a State Highway 2 intersection in Ōmokoroa, and a local link road and cycleway in Kaikōura. Upgrading water supply and roading in other projects will also deliver greater housing capacity.

“We’ve also ensured to deliver funding to developments in areas of the country with some of the greatest need of additional supply.

“The $179m of infrastructure funding allocated to these projects is expected to enable over 8,000 dwellings over the next 20 years, with over 5,000 of these expected within the next decade. These homes will ranges from elderly housing, papakāinga, public, affordable and market housing.

“The only way we are going to solve the housing crisis is to build more houses. Our Government is making the most investment since the 1970s in land, housing and infrastructure like pipes and roads to enable new housing. There is no silver bullet to solve the housing crisis but investments like this will make a difference.

“I want to congratulate these first council and iwi led projects to secure funding. A further 28 are currently undergoing due diligence and negotiations. These are expected to be successfully concluded and announced over the coming months.

“We’ve seen enormous interest from regions wanting to build more housing for their communities, but who need funding support to make developments viable. We know a massive piece of the missing puzzle in the housing crisis we inherited is infrastructure; there simply hasn’t been enough investment in getting land build-ready.

“It’s great for the Government to come to the table as a partner to unlock much needed housing all over the country.” Megan Woods said.

Building Consent Review

Megan Woods also announced that a review to modernise the Building Consent system is getting underway, with the public being invited to have their say.

“The current building consent system was established in 1991 when many buildings new buildings were mostly detached, single-storey, timber-framed buildings. A lot has changed in 30 years in how we design, procure and build so the building consent system needs to keep up with those changes.

“A better building consent system will support our Government’s wider goals to transform the housing market, unlock productivity growth, stimulate urban development where it is needed, and make homes more affordable for all,” Megan Woods said.

“The review will focus how to unlock productivity growth, stimulate urban development where it is needed, and make homes more affordable for all. We also want to provide assurance to building owners and users that building work will be done right the first time, and ensure that buildings are well-made, healthy, durable and safe.

“The building consent system review will not revisit the current joint and several liability rule as this rule provides the greatest assurance that building owners will be compensated for any loss that results from building defects. However, the review will closely examine how we manage and allocate risk within the building system.

“The building consent system needs to evolve as the sector continues to innovate and adopt new technologies and design methods. This is especially important as the effects of climate change will further impact the way we build in the future – energy efficiency and carbon emissions will become core considerations when building.

“While several issues facing the system have been brought to my attention, such as the capacity constraints experienced by building consent authorities to deliver on increased demand for new building work, this consultation will ensure all parts of the sector have the opportunity to share their views and be a part of potential system change,” Megan Woods said.

Submissions on the consultation close on 4 September 2022. A policy position statement on risk, liability and insurance in the building sector has also been released alongside this consultation. More information can be found here: https://www.mbie.govt.nz/have-your-say/building-consent-system-review

Comment from Mayors

Rotorua: Stormwater works in Rotorua to enable over 3,000 homes

Almost $85m has been committed to stormwater solutions in Central and Western areas of Rotorua, including reserves and green spaces up through the Utuhina and Mangakakahi Streams. With the help of developer partners such as Watchman Capital Limited, Rotorua Lakes Council expects this infrastructure to enable over 3,000 dwellings.

Rotorua Mayor, Steve Chadwick, says today’s announcement is huge for the community.

“We have a transformational programme of work and investment planned for our critical infrastructure that will support the network’s capacity and capability to cope with housing intensification, greenfield development, and the impacts of climate change,” she says.

“This funding will enable us to accelerate this programme of work and reduce the timeframe for completion from thirty years to seven years.”

Western Bay of Plenty: Intersection upgrade for priority growth area in Western Bay of Plenty to enable up to 2,500 homes

Investment of approximately $38.4m will support an upgrade of a State Highway 2 intersection, providing safe access to the Ōmokoroa peninsula and catering for the next 15 years of anticipated growth for the town.

Western Bay of Plenty Mayor, Garry Webber, says the Council expects this upgrade to enable up to 2,500 homes, with a mix of standalone homes, affordable homes and medium density housing.

“This funding will turn what has long been a vision into a reality for our communities,” he says.

“We can now build a vital piece of infrastructure that will significantly improve the safety and day-to-day movements of our people – in turn opening up critical new housing supply in Ōmokoroa. We are grateful to Kāinga Ora for seeing the value this work brings to the region.”

Ōtaki, Kāpiti Coast: Over 1,000 homes Papakāinga, affordable and market housing flagged for Ōtaki

In the Kāpiti Coast town of Ōtaki, a joint application between Māori landowners, Council and private developers succeeded in securing approximately $29.32m of IAF funds to upgrade water supply and roading. This funding is expected to enable over 1,000 papakāinga, affordable and market homes.

Kāpiti Coast District Mayor K Gurunathan says recent housing surveys and community korero have demonstrated how significant housing stress is for many across the district.

“Ōtaki has the highest level of housing need in the Kāpiti Coast with the greatest affordability pressures on residents. Only 20% of renters can affordably pay the median market rent, with only 2% able to buy a dwelling at the median market sale price,” says Mayor Gurunathan.

“Housing is a complex issue and not solely the responsibility of any one organisation or sector. Solutions must lie in partnerships – which is why we have worked along with iwi partners, particularly Ngā Hapū o Ōtaki, to seek support to develop infrastructure enabling approximately 1,000 new homes at three locations in Ōtaki over the next 10 years.

“We are immensely grateful for this funding as it will enable the delivery of waters and roading infrastructure to support the new housing, and contribute to capacity for growth and improved resiliency for existing residents. This is a transformative investment for Ōtaki and for those in our community struggling with housing accessibility.”

Napier: $12 million for Maraenui enables 400 additional affordable and public housing

Maraenui in Napier will receive $12.4m for crucial flood management work, which Napier City Council believes will provide network capacity for an additional 400 new homes, including public and affordable.

Napier City Council Chief Executive Dr Steph Rotarangi says the IAF funding will enable a significant step forward for housing in the city.

“Like many cities in New Zealand, we know that to secure a strong future we need to ensure we have sufficient safe, healthy homes for our growing population. Our community’s wellbeing will be enhanced by improving our housing stock and made possible with better infrastructure through this fund.”

Kaikōura: Elderly housing among outcomes for Kaikōura’s approximately 400 new houses

Kaikōura is receiving almost $7.8m from the Infrastructure Acceleration Fund for projects expected to enable approximately 400 houses across two different sites – Vicarage Views, a new subdivision situated within the Kaikōura urban area, and Ocean Ridge an existing subdivision to the west of the town accessed by State Highway 1.

Kaikōura District Council Mayor Craig Mackle says, “This is a great result for Kaikōura. We have a critical gap in modern, low to medium income housing and elderly housing units that we need to urgently address. The funding from the IAF is a potential game changer to help address this need within our housing stock - both now and into the future.

“Along with flood protection, this funding also enables new roading, footpaths and cycleways, which is very exciting as they will provide connectivity between the two subdivisions and with the town. For kids living in Ocean Ridge it will provide a safer and healthier route to school that no longer involves State Highway 1. It has the potential to change how we get around Kaikōura for the better.”

Gisborne: Taruheru investment enables Māori housing

The Taruheru catchment area in Gisborne will see a $4.2m IAF investment in key water supply, stormwater and roading upgrades. Gisborne District Council expects these works will enable public, affordable and market housing, as well as a Toitū Tairāwhiti Housing site for mana whenua housing and a wellness centre.

Gisborne District Council Chief Executive Nedine Thatcher Swann says funding from the IAF will be transformative in enabling the delivery of infrastructure for the development of over 450 new homes over the next 10 years.

“The funding will make it possible for developments on the eastern fringe of the city to be completed much earlier than planned and ultimately support more families into high-quality, warm, dry homes,” she says.

“This investment is a significant boost enabling Council to fast-track the delivery of essential roading improvements, water connections and wastewater upgrades, to support growth of the residential area in the Taruheru.”

New Plymouth: Walking and cycling options for up to 300 further houses in New Plymouth

Six housing developments in Ferndale, New Plymouth, will see an approximately $1.8m investment in upgrades to the water supply and transport options, which the New Plymouth District Council believes will allow for up to 300 new homes over the long-term, with multi-modal transport options.

“The contribution of $1.8m from the Infrastructure Acceleration Fund is a welcome boost as we work with developers on this much needed new housing. Our district, like much of Aotearoa, has a growing demand for quality affordable homes and this money will help deliver not just essential works like water and sewerage for the 300 homes planned for Frankley/Patterson Road, but will also fund improvements like walking and cycling links that will help build healthier and more sustainable neighbourhoods,” says Neil Holdom Mayor of New Plymouth District.

Note for Editors:

Region New homes expected to be enabled Funding agreed Types of infrastructure being funded
Rotorua 3,080 $84.6M flood management
Ōmokoroa, Western Bay of Plenty 2,580 $38.4M transport
Ōtaki, Kāpiti Coast  1,040 $29.3M three waters and transport
Maraenui, Napier 400 $12.4M flood management
Kaikōura 460 $7.8M three waters and transport
Taruheru Catchment, Gisborne 458 $4.2M three waters and transport
Patterson Road, New Plymouth 300 $1.8M three waters and transport

The Infrastructure Acceleration Fund (IAF) is part of the Housing Acceleration Fund (see below) and is a contestable fund to enable housing development through infrastructure investment in transport, three waters or flood management. Administered by Kāinga Ora – Homes and Communities, the fund of approximately $1 billion was launched by the Government in June 2021, and contracts are now being finalised.

The $3.8 billion Housing Acceleration Fund  announced in March 2021 has so far allocated:

Large Scale Projects in Auckland:

Large Scale Project in Porirua

  • $136M in July 2021 to unlock capacity for an extra 2,000 homes (+ as above, $6.1 million through the IAF.