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.