High-growth councils have submitted $1.79 billion of proposals to the Government for support from its $1 billion Housing Infrastructure Fund, but ministers said on Wednesday they weren’t happy with what they’d seen.
The councils have until 31 March to submit final proposals for a share of the fund, and Infrastructure Minister Steven Joyce and Building & Construction Minister Nick Smith said they wanted councils to be more ambitious in their final proposals.
Mr Joyce said: “Only a small number of the 17 proposals received through the expressions of interest phase would result in projects being advanced earlier than previously planned by the councils. We want to see more ambitious projects that will have a greater positive impact on housing supply over the next 5 years.”
Dr Smith said the Government had set up the fund last year because council constraints in financing the necessary infrastructure – the water supply, stormwater, wastewater & roading – could slow the opening up of new housing areas. He said the fund could support construction of 50,000 new homes, depending on which final proposals were supported.
The 2-stage process had enabled councils to ‘test drive’ & refine their ideas before the final proposal stage: “The final proposals will be assessed by an independent panel, with priority given to those initiatives that enable the most new housing. We expect to announce the final allocations later this year.
“The Housing Infrastructure Fund is part of the Government’s comprehensive plan to grow additional housing supply alongside special housing areas, the new Auckland unitary plan, the national policy statement on urban development, reforms to the Resource Management Act, the Crown land programme & the HomeStart scheme. We have been successful in more than doubling the house build rate from 15,000 to more than 30,000/year.”
When the Government set up the fund, it highlighted the growth areas it was looking at:
Auckland: Helensville, Waiuku, Pukekohe, Pokeno (Waikato) & Clevedon
Tauranga: Tauriko (in the Kaimai foothills)
Hamilton: Taupiri & Cambridge
Christchurch: Kaiapoi, Rolleston & Lincoln
Queenstown: Arthurs Point, Lower Shotover-Lake Hayes-Arrowtown & Jacks Point.
8 January 2017: Housing infrastructure fund call for final proposals imminent, and panellists required
3 July 2016: PM talks $1 billion infrastructure fund, English talks payback frame, Smith talks grabbing more power
Attribution: Ministerial release.