Thirty-five housing developments in last stage of infrastructure fund
3 May 2022
A wide range of proposals for much-needed housing developments around the country are through to the final stage of the bid for funding from the Infrastructure Acceleration Fund (IAF).
The IAF, administered by Kāinga Ora – Homes and Communities, is a contestable fund designed to help councils fund infrastructure to enable housing development in areas of need. The fund of approximately $1 billion was launched in June 2021 and has received a great response from councils, iwi and developers across Aotearoa New Zealand.
Following a robust process to evaluate both initial expressions of interest and full responses to request for proposals, 35 proposals have now been invited to enter the final stage of the IAF process. This stage will see further due diligence undertaken and both funding and housing outcome agreements negotiated before funding can be confirmed.
Kāinga Ora GM Commercial Group, Caroline McDowall says although final negotiations are to be completed, indications from the applications are that this funding could unlock crucial housing of anywhere from 25,000 to 35,000 dwellings.
“This next stage ensures all parties are paying their fair share, and agrees conditions and development milestones,” she says.
“The due diligence and negotiations involved in this part of the process are important for forming the IAF agreements, which in turn sets out how and when the developments will receive IAF funding.”
From the applications to be negotiated, there are 14 proposals for developments in New Zealand’s major urban cities, with the remaining 21 in other areas throughout the country. Almost one third (11) of the applications going forward to the next stage are proposals that are co-led with Māori or have Māori as key partners.
“The strong interest we have seen in the IAF highlights how housing development can be stalled by a need to upgrade, replace or build key infrastructure,” says Caroline McDowall.
“The IAF is designed to help developments overcome this initial barrier by assisting councils with funding, and our team is confident the funding will help advance the delivery of a significant number of homes in areas with great housing need.
“We have already had one proposal fast-tracked through this process, resulting in funding that will enable an additional 400-odd homes at Kenepuru Landing in Porirua, including essential public and affordable housing.
“We look forward to announcing further successful agreements from July onwards,” she says.
“Of course, the negotiated IAF agreements will just be the start of this journey for these developments, however this funding will help to bring tens of thousands more homes to New Zealanders.”
Read more about the Infrastructure Acceleration Fund.
Page updated: 3 May 2022