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Over 16,000 More New Homes To Be Unlocked With Infrastructure Bonanza

Hon Dr Megan Woods

Minister of Housing

· Approximately 16,600 new homes across New Zealand set to be unlocked by Government’s third tranche of the Infrastructure Acceleration Fund

· New homes enabled in Hamilton, Auckland, Tauranga, Christchurch, Kawakawa, Kaikohe, Westport, Upper Hutt, Waipukurau, Hokitika and Pahiatua

Critical infrastructure projects will get Government support to unlock thousands more homes in communities around the country, Housing Minister Megan Woods announced in Hamilton today.

The third round of funding from the Government’s Infrastructure Acceleration Fund (IAF) will invest $539.8 million on ground work like pipes, roads and flood protection to enable thousands of new homes in communities, from Kaikohe to Hokitika.

“This significant funding will help pave the way for new developments in towns and cities where more housing is needed,” Megan Woods said.

“We are turning around the housing crisis we inherited by stripping back red tape to get more housing built, and investing in the long-neglected critical infrastructure needed to prepare land so it’s ready to build on.

“Laying the literal groundwork like this with roading, and three waters infrastructure for drinking, waste and storm water, means new housing projects that include affordable housing, can get underway faster.

“A total of 13 proposals have been allocated funding from this round of the IAF in 11 centres of the country; Hamilton, Auckland, Tauranga, Christchurch, Kawakawa, Kaikohe, Westport, Upper Hutt, Waipukurau, Hokitika and Pahiatua. Combined, they are expected to enable around 16,600 new homes to be built across multiple developments over the next 10 to 15 years.

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“The IAF funding will support intensification developments in Auckland, Hamilton and Tauranga to enable connected, inner-city communities. In Westport we are funding infrastructure works such as an arterial road and bridge upgrade to help facilitate increased housing options away from existing flood-prone areas.

“Meanwhile in the Far North, IAF-funded infrastructure projects include a road extension and significant wastewater and stormwater upgrades, which are expected to enable hundreds of new homes across developments in Kawakawa and Kaikohe.

“The IAF is supporting a wide range of residential developments in areas of high housing need, with positive results for communities in these regions.

“Today’s announcement follows on from earlier IAF funding allocations of $6.1 million in December last year, $179 million in July, and $192 million last month (October).

“This means, to date, $916.3 million in IAF funding has been committed to infrastructure projects throughout the country. Combined, these IAF-funded projects are expected to enable around 30,000 to 35,000 new homes for New Zealanders over the next 10 to 15 years, Megan Woods said.

Read more about the IAF-funded projects:

Hamilton infrastructure to support 4,000 new homes in the central city

IAF funding of $150.6 million committed to support intensification of Hamilton’s central city. The funding will be used for critical infrastructure projects to facilitate further development in the area – including a new water reservoir and pump station, local waters upgrades and improvements, and a multimodal walking and cycling bridge across the Waikato River, to connect eastern suburbs to the city centre.

The funding is expected to support around 4,000 new homes, located close to employment, education and transport to enable a ‘20- minute city’ where people can live, work and play in the same space and reduce their need for travel.

The increased infrastructure capacity will also unlock the potential for new commercial development areas, providing additional services and amenities to support a growing inner-city community.

Hamilton Mayor Paula Southgate said Hamilton desperately needs more housing but the challenge has been how to fund core infrastructure to enable more homes to be built faster.

“The fact the Government has listened to our pleas and agreed to help pay for this fit-for-purpose infrastructure is fantastic news for Hamilton. This grant is truly game-changing and it supports Council’s vision to transform the central city into a vibrant place where people want to live, work and visit. The grant will also help fund Hamilton’s much talked about pedestrian and cycling bridge over the Waikato River.”

Major transport upgrades for Auckland’s Mt Albert to support 4,000 new homes

IAF investment of $113.2 million will fund Carrington Road-related infrastructure upgrades to support the large-scale urban development at Pt Chevalier/Mt Albert, Auckland led by the three Tāmaki Makaurau Rōpū of Marutūāhu, Ngāti Whātua and Waiohua-Tāmaki.

It is expected this infrastructure will support the delivery of at least 4,000 new homes over nearly 40 hectares of land.

The IAF funding will be used for the widening of Carrington Road and associated upgrades, which include dedicated bus lanes, cycle lanes, intersection improvements, and safe pedestrian crossing points, all within the extended Carrington Road corridor identified in the Unitary Plan. The transport solutions funded by the IAF will also enable future development and intensification in Mt Albert and surrounding suburbs.

Auckland Transport’s (AT) EGM for Planning and Investment, Jenny Chetwynd says the fund supports brownfield development on this site by enabling infrastructure upgrades that give Aucklanders more choices when it comes to travelling around the city.

“AT will be working alongside the Rōpū to carry out transport upgrades while this major development is being constructed.”

Tauranga green field site Tauriko West gets boost to deliver 2,000 new homes

In the fast-growing Bay of Plenty region, $80 million from the IAF has been allocated to major transport and wastewater upgrades to unlock housing in the priority growth area of Tauranga’s greenfield Tauriko West. Tauranga City Council expects the funding will enable around 2,000 new homes, which could include public, affordable and market housing.

The transport upgrades funded through the IAF will increase connectivity to the city centre and nearby Tauriko Business Estate, while developing a long-term network to support urban growth within the wider Western Corridor.

Tauranga City Council Commission Chair Anne Tolley says the infrastructure the IAF grant will help to fund will accelerate much-need housing development for the city. “This is a game changer for Tauranga and will mean many more families will have access to affordable homes as the planned developments proceed.”

1,600 new homes set for priority development area in Tauranga

Tauranga’s Te Papa Peninsula will benefit from $67.9 million of IAF funding, which is allocated to critical infrastructure upgrades to unlock housing and support intensification in the area.

The IAF funding will contribute towards Stage Two of the Cameron Road corridor upgrade – an important arterial road that runs through the centre of Te Papa Peninsula and connects the outer suburbs to the city centre. Planned works include developing a full-length walking, cycling and public transport corridor.

Tauranga City Council expects the IAF-funded infrastructure, which also includes further transport upgrades and water supply extensions, will enable 1,600 new homes within connected and vibrant communities.

Tauranga City Council Commission Chair Anne Tolley says the Te Papa infrastructure grant will “support the development of many more homes within the area’s existing footprint and ensure that there are enhanced multi-modal connections linking the area and the suburbs to the south and east to the city centre and beyond”.

Northern Christchurch investment to enable approx. 1,400 new homes

IAF funding of $30.9 million for new transport infrastructure and wastewater, stormwater and freshwater upgrades will accelerate housing delivery within a large development area in Papanui, Christchurch.

The stormwater projects funded through the IAF will also create additional network capacity for surrounding suburbs, and the wastewater infrastructure will reduce the occurrence of overflows in high rainfall events.

It is expected the infrastructure funding will enable around 1,400 new homes located close to the city centre, educational facilities, public transport, and other community amenities.

“This is a great example of the Government, Paenga Kupenga (mana whenua’s economic arm), the private sector and Council working together to identify and deliver housing outcomes,” said Christchurch Deputy Mayor Pauline Cotter. The development includes new public housing and affordable homes, and will be built progressively over the next seven years.

Approx. 300 new homes enabled in Kawakawa

A road extension and significant water infrastructure upgrades in the Far North town of Kawakawa will receive $25.6 million from the IAF, to enable hundreds of new homes to be built in the area and address the significant housing shortfall.

Far North District Council expects the infrastructure projects funded by the IAF will enable around 300 new homes, including approximately 180 homes within the proposed Te Mataora development delivered by Ngā Kāingamaha o Ngāti Hine Charitable Trust. The Trust’s plans for the development include aged-care apartments and more affordable homes, to create an intergenerational community.

“This funding from Government will be combined with our Long-Term Plan allocations to enable us to carry out much-needed water and wastewater projects earlier than originally planned,” said Far North District Council Mayor Moko Tepania. “This investment in core infrastructure will also enable affordable and general market housing development in our community.”

Heamana (Chair) of Ngā Kāingamaha ō Ngāti Hine, Peter Hemi White, says “As we all know, the need for housing in the north is dire. What we also know is most good things in this world start at home. We are grateful to be working together to enable the health of our people and their community through better homes. We value the support, relationships, all the mahi, and the leadership that got us to this point. We acknowledge all those that have come before us. We understand we still have a lot of mahi ahead of us to deliver the homes for our people and their community. He ora tatou

“Te Mataora being in such close proximity to the Bay of Islands hospital, will be of great benefit. Especially to our old people, who we treasure so very much. Bay of Islands hospital has recently seen much-needed and significant investment. We look forward to working with our people to realise Te Mataora and setting the conditions for those that aspire to return home. He ahi kā roa

“We of Ngāti Hine are a blessed people, with a rich history, a treasured living culture, a valued community and a bright future ahead. Hei toutou i te kapura o te tangata.”

Kaikohe funding to enable 365 new homes over three sites

Housing developments on three sites in Kaikohe will be accelerated by $23 million in IAF funding, which will be used for flood management and significant wastewater and stormwater upgrades to improve the current network and provide for future growth.

The Far North District Council expects the IAF-funded infrastructure will enable 365 new homes in the area, to provide much-needed home ownership opportunities for mana whenua and the wider community. Both public and papakāinga homes are among the planned housing outcomes.

Far North District Council Mayor Moko Tepania acknowledged the improved performance and additional capacity for new homes this funding would support. “Further enabling housing that is desperately needed in the Far North is fantastic news for our communities, and this funding makes it possible for new homes to become available.”

Te Hau Ora o Ngāpuhi CEO Tia Ashby says, “The infrastructure funding will allow us to continue to deliver our Housing Strategy for Ngāpuhi whānau by providing more homes in Kaikohe over the next few years. We are excited that we can work with our partners such as HUD and the Far North District Council to deliver housing through appropriate and modern infrastructure for the benefits of our community.”

From recovery to resilience in Westport with up to 400 new homes

The South Island town of Westport will receive $13.6 million from the IAF for transport and water infrastructure, which will support housing delivery and help increase community resilience against future climate events.

There is significant long-term unmet housing demand in the greater Westport area, and the IAF funded infrastructure will assist in opening new developable land.

The IAF-funded infrastructure will enable up to 400 new homes to be built within the Alma Road development area, which aims to provide the Westport community with increased housing options on naturally raised land away from existing flood-prone areas.

The infrastructure projects include new stormwater, freshwater and wastewater mains, an arterial road and bridge upgrade, and a new cycleway and footpath.

Buller District Mayor Jamie Cleine says, “I’m very excited to see the IAF funding being approved. This infrastructure investment is an important step in providing future proof options for residents in Buller. It’s important we enable a mix of property types in locations less prone to climate change and Alma Road has long been identified as a future proof location.

“This strategic direction requires strong collaboration between central government, Buller District Council and property developers. It is exactly the model that districts like Buller need in order to grow and adapt to climate change.”

Kawatiri Holdings Ltd Director Andrew Amies says, “Westport is a great place to live and had a housing shortage prior to the flood events in 2021. There is a continuing high demand and interest in people moving here; combined with local businesses planning on growing and creating more employment, we need more fully serviced sections and houses in the district.

“The commitment of central government to enable infrastructure development for small councils through the IAF funding is exactly what’s needed in the Buller District. We want to see Westport continue to grow and flourish and are enthused to play our part in opening up more land for housing developments.”

Significant transport upgrades for Upper Hutt to enable about 850 new homes

Upper Hutt City Council will receive $12.4 million from the IAF, which will fund critical transport upgrades in the area and enable a large, high-density housing development planned within part of the Trentham Racecourse in Upper Hutt. It is expected the new infrastructure will provide the necessary capacity to support the development, while also increasing the resilience of the entire Upper Hutt transport network.

The developer, Gillies Group, and Upper Hutt City Council believe the IAF-funded infrastructure will help enable around 850 new homes within a mixed-use development that will include residential apartments, aged-care homes and community amenities.

Wayne Guppy, Mayor of Upper Hutt, says this is a unique opportunity for Upper Hutt and shows confidence in the city.

“This project receiving funding shows that our plans for growth are aligned with the Government’s position on the infrastructure projects needed for housing development. Council is committed to planning for and accommodating growth by providing for a range of housing across our city. It is important to help address the housing shortfall and planned population growth over the coming years. The next steps for Council are now to undertake important public consultation and decision-making processes.”

Waipukurau investment unlocks land for new housing

Central Hawkes Bay District Council will receive $10.9 million, to fund critical infrastructure required to unlock the land for new housing within the Waipukurau South Growth Precinct. The Council believes the funding will enable up to 950 homes to be built within the Precinct – supporting much of the urban growth needed in the district.

The infrastructure works include various transport improvements, several kilometres of new pipeline for wastewater and water supply, a new water reservoir, and major stormwater upgrades that are critical to realising the full potential of the development area.

Mayor Alex Walker says, "We're excited that this infrastructure funding will finally open the way to a long-held vision for how we can live in the heart of Waipukurau. This site, including what was the home of our old hospital, has long been zoned residential but was inaccessible for development. New homes for whānau and for retirees make sense when the site is so close to the centre of the town. As Central Hawke's Bay continues to thrive and grow, this investment by the Government will support and futureproof the development of the area, the wider district, and our community for decades.”

Auckland’s Ōrākei set to get 460 Papakāinga homes

IAF investment of $7.3 million will support more planned papa kāinga housing close to Ōrākei Marae in Auckland, delivered by local hapū Ngāti Whātua Ōrākei. The IAF funding will be used to upgrade the intersection between Kupe Street and Kepa Road to improve safety and access to Ōrākei papa kainga, while also contributing to the potential for further housing growth and intensification in the Ōrākei area.

It is expected the funding will accelerate the delivery of infrastructure needed to enable around 460 homes over the coming years, supporting the aspirations of Ngāti Whātua Ōrākei to build more homes for whānau that are located within walking distance to the Marae, and with a strong sense of community.

Ngāti Whātua Ōrākei Trust Chair Marama Royal says, “We welcome an upgrade of the intersection at Kupe Street and Kepa Road. This is considered a significant connection point for our whānau between the papa kāinga, Ōrākei Marae, Pourewa and the wider community. Our Ngāti Whātua Ōrākei Masterplan confirms our desire to build more whare for our whānau, but mobility and safety must also be enhanced to support the movement of our whānau and community, and in particular through this very busy intersection.”

Hokitika housing boost – 110 new homes to be enabled

Plans by the Westland District Council to develop part of the Hokitika Racecourse for new housing will be accelerated by $3.5 million in IAF funding, which will enable homes to be built much sooner than would otherwise be possible.

The transport and three waters infrastructure funded by the IAF is expected to enable around 110 new homes, which is expected to include more affordable housing and public homes for older people.

"Securing funding from the Infrastructure Acceleration Fund is a positive step towards achieving Council’s aspirations of increasing the housing supply for our elderly people in Hokitika," says Westland District Mayor Helen Lash.

"Council recognises that we need to increase the portfolio with pensioner housing to meet the current and future demands. Our Long Term Plan identified the area of the old Hokitika Racecourse that is already zoned as residential to be developed with the infrastructure necessary to build housing. The funding from the IAF will greatly assist the Hokitika community in meeting housing demands for the area. Our focus for the project will be to ensure that the development honours the past of this special site, and will have strong linkages to the creation of the adjacent recreational reserve. We are very grateful that we are receiving this assistance from the government to provide for our community.”

Papakāinga and affordable housing for Pahiatua – at least 30 new homes enabled

Development plans for a former school site in the Tararua town of Pahiatua will be supported by $880,000 from the IAF, to help meet the need for more housing.

The IAF funding will be used for new wastewater, stormwater and freshwater infrastructure, which the Tararua District Council expects will enable at least 30 new homes on the Rangitāne-owned development site. Rangitāne look forward to working in partnership with central and local government. Papakāinga, rental and affordable housing are among the proposed plans for the development.

Tararua Mayor Tracey Collis says the funding is significant and will help address a shortage of housing identified in Pahiatua.

“The development would not have been able to proceed without the funding from the Government for significant investment in Council infrastructure. It means that new houses can be built progressively over several years, once new wastewater, stormwater and water systems have been installed. This assists Rangitāne Tamaki nui-ā-Rua and Tu Mai Ra Investments to achieve their aspirations for housing and supported by our Council Housing Strategy as an active enabler of housing in the Tararua. Rangitāne received the former Pahiatua Hillcrest School site through the Treaty Settlement process and partnered with Council in putting the proposal forward.”

Editor’s notes:

RegionNew homes expected to be enabledFunding agreedTypes of infrastructure being funded
Hamilton4,140$150.6 millionTransport and three waters
Auckland (Mt Albert)4,000$113.2 millionTransport
Tauranga (Tauriko West)2,000$80 millionTransport and three waters
Tauranga (Te Papa Peninsula)1,600$67.9 millionTransport and three waters
Christchurch1,400$30.9 millionTransport and three waters
Kawakawa310$25.6 millionTransport and three waters
Kaikohe365$23 millionFlood management and three waters
Westport400$13.6 millionThree waters and transport
Upper Hutt859$12.4 millionTransport
Auckland (Ōrākei)469$7.3 millionTransport
Waipukurau950$10.9 millionTransport and three waters
Hokitika110$3.5 millionTransport and three waters
Pahiatua30$880,000Three waters

· The IAF is a contestable fund of approximately $1 billion, designed to allocate funding for infrastructure to enable housing development – such as transport, three waters or flood management. It is part of the Government’s $3.8 billion Housing Acceleration Fund announced in March 2021.

· Administered by Kāinga Ora – Homes and Communities, the IAF was launched by the Government in June 2021.

· The IAF was open to territorial authorities, developers and iwi to apply for transport, three waters or flood-management funding to service the development of new or additional housing in the medium term.

· The successful applicants (i.e. councils, developers and/or iwi) are responsible for delivering the IAF-funded infrastructure and building the homes it enables.

· All applications have been subject to robust evaluation, led by Kāinga Ora – Home and Communities, and involving input from other Government agencies, with final decisions made by the Ministers of Housing and Finance.

· Over 200 initial expressions of interest were received in the early stages of the IAF, with over $5 billion requested from the approximately $1 billion fund.

· Of the approximately 200 initial expressions of interest, applicants of 80 proposals were invited to submit a response to request for proposal in December 2021.

· In December 2021, $6.1 million of IAF funding was announced for Kenepuru Landing in Porirua, enabling over 400 additional homes.

· Thirty six proposals were invited to progress the final due diligence and negotiation stage in May 2022 (two of which were subsequently combined).

· The first tranche of IAF funding was announced in July 2022, followed by the second tranche of funding in October 2022

For more information on the IAF, please see www.kaingaora.govt.nz/iaf

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