Over 8,000 new homes possible as $179m of infrastructure fund committed
21 July 2022
Critical infrastructure projects to enable seven large housing projects around the country will receive a share of almost $179m in funding to enable thousands more homes, Housing Minister Megan Woods announced today.
Critical infrastructure projects to enable seven large housing projects around the country will receive a share of almost $179m in funding to enable thousands more homes, Housing Minister Megan Woods announced today.
Rotorua, Ōmokoroa, Kaikōura, Ōtaki, Napier, Gisborne and New Plymouth will all receive a portion of the Government’s Infrastructure Acceleration Fund.
The Infrastructure Acceleration Fund (IAF) is a contestable fund designed to allocate funding for infrastructure to enable housing development such as transport, three waters or flood management. Administered by Kāinga Ora – Homes and Communities, the fund of approximately $1 billion was launched by the Government in June 2021, and has received great response from councils, iwi and developers across Aotearoa.
Kāinga Ora IAF Project Director, Andrew Brown, says the first tranche of funding announced today will go a long way towards allowing more homes to be built in the regions.
“The $179m IAF funding announced today will fund core infrastructure, enabling the market to work together with councils and Kāinga Ora to deliver over 8,000 homes for New Zealand,” he says.
“This marks the beginning of a game-changing journey to deliver crucial infrastructure needed before more homes can be built. The wide range of homes this infrastructure will pave the way for includes elderly housing, papakāinga, public, affordable and market housing.
“The IAF is a good example of how Kāinga Ora is fulfilling its role as the Government’s urban development agency. Through strong partnerships with local councils, iwi and private developers, the funding announced today will help increase housing supply and build thriving communities for New Zealanders.”
The IAF funding announced today includes the following.
|
Region |
Infrastructure type |
Funding agreed |
Homes expected |
|---|---|---|---|
|
Rotorua |
Flood management |
$84.6M |
3,080 |
|
Ōmokoroa |
Transport |
$38.4M |
2,580 |
|
Ōtaki |
Three waters and transport |
$29.3M |
1,040 |
|
Maraenui |
Flood management |
$12.4M |
400 |
|
Kaikōura |
Three waters and transport |
$7.8M |
460 |
|
Gisborne |
Three waters and transport |
$4.2M |
458 |
|
New Plymouth |
Three waters and transport |
$1.8M |
300 |
“Of course this is just the beginning for these developments, with milestones to meet and the typical construction challenges to face. However, we will be working closely with the project delivery partners as the projects progress,” says Andrew Brown.
“We have a further 28 proposals currently undergoing due diligence and agreement negotiation in the final stage of the IAF, so look forward to more exciting IAF announcements in the coming months.”
Read more about the IAF-funded projects in Tranche One:
Almost $85m has been committed to stormwater solutions in Central and Western areas of Rotorua, including reserves and green spaces up through the Utuhina and Mangakakahi Streams. With the help of developer partners such as Watchman Capital Limited, Rotorua Lakes Council expects this infrastructure to enable over 3,000 dwellings.
Rotorua Mayor, Steve Chadwick, says today’s announcement is huge for the community.
“We have a transformational programme of work and investment planned for our critical infrastructure that will support the network’s capacity and capability to cope with housing intensification, greenfield development, and the impacts of climate change,” she says.
“This funding will enable us to accelerate this programme of work and reduce the timeframe for completion from thirty years to seven years.”
Investment of approximately $38.4m will support an upgrade of a State Highway 2 intersection, providing safe access to the Ōmokoroa peninsula and catering for the next 15 years of anticipated growth for the town.
Western Bay of Plenty Mayor, Garry Webber, says the Council expects this upgrade to enable up to 2,500 homes, with a mix of standalone homes, affordable homes and medium density housing.
“This funding will turn what has long been a vision into a reality for our communities,” he says.
“We can now build a vital piece of infrastructure that will significantly improve the safety and day-to-day movements of our people – in turn opening up critical new housing supply in Ōmokoroa. We are grateful to Kāinga Ora for seeing the value this work brings to the region.”
In the Kāpiti Coast town of Ōtaki, a joint application between Māori landowners, Council and private developers succeeded in securing approximately $29.32m of IAF funds to upgrade water supply and roading. This funding is expected to enable over 1,000 papakāinga, affordable and market homes.
Kāpiti Coast District Mayor K Gurunathan says recent housing surveys and community korero have demonstrated how significant housing stress is for many across the district.
“Ōtaki has the highest level of housing need in the Kāpiti Coast with the greatest affordability pressures on residents. Only 20% of renters can affordably pay the median market rent, with only 2% able to buy a dwelling at the median market sale price,” says Mayor Gurunathan.
“Housing is a complex issue and not solely the responsibility of any one organisation or sector. Solutions must lie in partnerships – which is why we have worked along with iwi partners, particularly Ngā Hapū o Ōtaki, to seek support to develop infrastructure enabling approximately 1,000 new homes at three locations in Ōtaki over the next 10 years.
“We are immensely grateful for this funding as it will enable the delivery of waters and roading infrastructure to support the new housing, and contribute to capacity for growth and improved resiliency for existing residents. This is a transformative investment for Ōtaki and for those in our community struggling with housing accessibility.”
Maraenui in Napier will receive $12.4m for crucial flood management work, which Napier City Council believes will provide network capacity for an additional 400 new homes, including public and affordable.
Napier City Council Chief Executive Dr Steph Rotarangi says the IAF funding will enable a significant step forward for housing in the city.
“Like many cities in New Zealand, we know that to secure a strong future we need to ensure we have sufficient safe, healthy homes for our growing population. Our community’s wellbeing will be enhanced by improving our housing stock and made possible with better infrastructure through this fund.”
Kaikōura is receiving almost $7.8m from the Infrastructure Acceleration Fund for projects expected to enable approximately 400 houses across two different sites – Vicarage Views, a new subdivision situated within the Kaikōura urban area, and Ocean Ridge an existing subdivision to the west of the town accessed by State Highway 1.
Kaikōura District Council Mayor Craig Mackle says, “This is a great result for Kaikōura. We have a critical gap in modern, low to medium income housing and elderly housing units that we need to urgently address. The funding from the IAF is a potential game changer to help address this need within our housing stock - both now and into the future.
“Along with flood protection, this funding also enables new roading, footpaths and cycleways, which is very exciting as they will provide connectivity between the two subdivisions and with the town. For kids living in Ocean Ridge it will provide a safer and healthier route to school that no longer involves State Highway 1. It has the potential to change how we get around Kaikōura for the better.”
The Taruheru catchment area in Gisborne will see a $4.2m IAF investment in key water supply, stormwater and roading upgrades. Gisborne District Council expects these works will enable public, affordable and market housing, as well as a Toitū Tairāwhiti Housing site for mana whenua housing and a wellness centre.
Gisborne District Council Chief Executive Nedine Thatcher Swann says funding from the IAF will be transformative in enabling the delivery of infrastructure for the development of over 450 new homes over the next 10 years.
“The funding will make it possible for developments on the eastern fringe of the city to be completed much earlier than planned and ultimately support more families into high-quality, warm, dry homes,” she says.
“This investment is a significant boost enabling Council to fast-track the delivery of essential roading improvements, water connections and wastewater upgrades, to support growth of the residential area in the Taruheru.”
Six housing developments in Ferndale, New Plymouth, will see an approximately $1.8m investment in upgrades to the water supply and transport options, which the New Plymouth District Council believes will allow for up to 300 new homes over the long-term, with multi-modal transport options.
“The contribution of $1.8m from the Infrastructure Acceleration Fund is a welcome boost as we work with developers on this much needed new housing. Our district, like much of Aotearoa, has a growing demand for quality affordable homes and this money will help deliver not just essential works like water and sewerage for the 300 homes planned for Frankley/Patterson Road, but will also fund improvements like walking and cycling links that will help build healthier and more sustainable neighbourhoods,” says Neil Holdom Mayor of New Plymouth District.
For more information
Infrastructure Acceleration Fund
Media stories
- Thirty-five housing developments in last stage of infrastructure fund - May 2022
- First agreement for infrastructure fund enables additional iwi housing in Porirua - December 2021
- Government infrastructure fund moves to next stage - October 2021
- Government's infrastructure fund for housing accelerates - September 2021
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Page updated: 21 July 2022