Going for Housing Growth: What you need to know
The Government’s “Going for Housing Growth” programme means there are likely to be a lot of law changes aimed at speeding up development of homes and infrastructure. While the changes still have to be consulted on after they’re introduced, the hope is that this will help boost activity in the construction industry.
In March, reforms to the Infrastructure Funding and Financing Act (IFFA) were announced to make it easier for developers to get finance for new projects. Instead of councils (and ratepayers) paying for the infrastructure around new housing developments, the property owners pay a levy, similar to what happened with the Milldale development north of Auckland. This meant the development didn’t run up against council debt limits, which can hold up new infrastructure, because the council isn’t able to borrow money for the transport, parks and water needs for the new area.
Requiring a levy means councils would no longer be able to turn down developers’ proposals on that basis. To stop this affecting the upfront cost of new homes, the rules would also enable levies to be deferred. This would allow property owners to save up enough to pay them later, or for payments to start at an agreed milestone.
The Government also plans to remove the requirement that levies are only used for infrastructure related to that specific project. Councils could instead use levies to pay for infrastructure in other areas that aren’t as well supplied, speeding up development across the region. These changes are expected to take effect in 2027, and more announcements are due this September.
Changes to the Public Works Act are also being introduced so the Government can buy land needed for fast-track projects faster. This would see landowners who voluntarily sell their land before they’re required to, receive a bonus payment of up to $150,000. Under a streamlined objections process, landowners would either appeal directly to the local council or Government Minister, rather than go through the Environment Court, though owners of Māori land will still have the right to object to the court.
According to the Government, both sets of changes will make “growth pay for growth” and get new developments off the ground much faster, meaning a steady stream of work for the whole building and construction industry. You’ll be able to have your say through the public feedback process once the draft Bill is introduced to Parliament in or around May.
Meanwhile, you can read more about the proposals here and on Beehive.govt.nz.
