Infrastructure Acceleration Fund
Laying the foundation for new communities and neighbourhoods throughout Aotearoa New Zealand.
The Infrastructure Acceleration Fund (IAF) is administered by Kāinga Ora on behalf of the Crown.
It provides councils with funding to support the delivery of critical infrastructure (transport, water and flood management projects) needed to enable housing development, and commits councils and developers to building homes in areas of high housing need.
The IAF is designed to bridge the funding gap between what councils can afford and how much infrastructure costs, while also requiring developers to pay their fair share.
IAF programme update
Critical infrastructure projects supported by the Infrastructure Acceleration Fund (IAF) continue to be rolled out in communities across the country, with work progressing at pace in several regions.
Key delivery highlights as at 31 December 2024
- Around 30% of projects are either in construction or completed. The remainder are in the important early design phases.
- To date, projects have been completed in Rangiora, Ngāruawāhia, Hastings, Motueka, Pahiatua, New Plymouth, Gisborne and Whanganui.
- Since the programme began, developers and iwi throughout the country have built more than 2,400 homes as a result of IAF-supported infrastructure projects. Nearly 700 additional homes are currently under construction.
- Approximately $26 million in IAF funding has been drawn down by Councils, as their projects reach key milestones.
- The IAF also plays a key role in unlocking further infrastructure investment. As at 31 December 2024, approximately $162 million in additional co-funding has been invested in these projects by councils, iwi, developers and the NZTA.
It’s important to note projects can take many months or even years to move through the different delivery stages, due to the multi-year nature of infrastructure and urban development. For example, requirements such as detailed designs, zoning, consenting and land acquisition need to be met before projects get into construction.
IAF funding allocations
Nationally, $908 million in Crown funding from the IAF has been allocated to critical infrastructure projects in cities and towns across the country, from the Far North to Otago.
Combined, these IAF-supported projects are expected to enable around 30,000 to 35,000 new homes for New Zealanders over the next 10 to 15 years.
How were the projects chosen for funding?
The IAF was launched by the Government as a contestable fund in June 2021.
The evaluation and commercial negotiation process was led by Kāinga Ora and involved input from other Government agencies. Final funding decisions were made by the Ministers of Housing and Finance.
All proposals were assessed against key criteria set by Cabinet:
- Housing outcomes (40%): how will the Proposal, if delivered, contribute to the housing outcomes that are the purpose of the IAF?
- Impact of funding (20%): how critical is this funding to advancing the infrastructure and housing development?
- Cost and co-funding (20%): how cost effective is the Proposal and is everyone paying their fair share?
- Capability and readiness (20%): if funding is approved, how certain is it that the project will advance, and at what pace?
Landowners are expected to pay their fair share, and funding from councils and others is required for the housing developments to be realised.
The commercial negotiation phase was completed in early 2023. The IAF programme is now in the delivery phase whereby councils are in the process of designing, consenting, and constructing the infrastructure projects. Funding from the IAF is paid in arrears as key milestones are achieved – many of which will take multiple years to complete.
Frequently asked questions
Who is responsible for delivering the infrastructure and building the homes?
Councils, as funding recipients and project owners, are responsible for delivering the IAF-supported infrastructure. They work in partnership with developers and iwi, who will build the homes.
What is the role of Kāinga Ora?
Kāinga Ora manages the contracts entered into with councils, developers and iwi to track progress on the IAF-supported infrastructure projects and housing developments, ensuring milestones are reached and outcomes achieved.
In this instance, the role of Kāinga Ora is different to its developer or social housing functions.
When will the infrastructure works start?
IAF-supported infrastructure projects are now underway throughout the country.
It’s important to note timeframes are dependent on the extent of the infrastructure required and may change as the projects progress. As with all large-scale projects there are key activities (i.e. consenting, land acquisition) and detailed planning requirements to be met before physical works can commence.
Funding is made available to councils incrementally as their infrastructure projects reach key milestones.
What type of homes will be enabled?
The infrastructure works funded by the IAF are expected to enable a range of housing developments throughout Aotearoa, including intensification and greenfield developments with a mix of housing types. Affordable, market, social and papakāinga homes are among the planned housing outcomes identified by councils.
More information
- General enquiries: Please email the IAF Team on IAF@kaingaora.govt.nz
- IAF media enquiries: Please direct all media enquiries about the IAF to mediaenquiries@kaingaora.govt.nz
- Background information, including Cabinet papers: Please visit the Te Tūāpapa Kura Kāinga – Ministry of Housing and Urban Development(external link)
Page updated: 7 April 2025