LGNZ calls for pause and review of Fast-track housing referrals

Local Government New Zealand (LGNZ) is calling on the Government to pause referrals of Fast-track housing projects while key issues are addressed.

LGNZ Vice President Dan Gordon has welcomed the Government’s recent commitment to make changes to the framework for development contributions, to enable councils to recover more of the costs from fast-tracked housing projects, but the Government needs to go further.

“A number of individual councils have called for a pause and review and LGNZ is backing them.

"LGNZ has developed a four-point plan to maintain public confidence in Fast-track housing and the Government’s wider housing agenda.”

To make sure Fast track works on the ground, we need the Government to:

1. Put a temporary pause on ministerial referrals of housing projects while key issues are addressed.
2. Extend the changes to development contributions to cover projects that have already applied for consideration through the Fast-track process.
3. Require the Fast-track panel to consider the cumulative effect multiple projects could have on a given area.
4. Commission a longer-term review of Fast-track housing to right-size its role in the context of the new planning system.

“Some Fast-track housing projects are placing enormous strain on existing infrastructure rather than directing growth to areas that are ready for it, particularly in rural areas. 

“We’ve also seen some projects in flood-prone areas or projects that rely on privately provided infrastructure with no clear plan for long-term infrastructure ownership, maintenance and operation. These projects risk leaving local communities with significant costs in the future.

 "Fast-track housing applications shouldn’t be able to bypass council decisions in areas where we are planning significant housing growth already, and certainly not if the council has declined their application multiple times for good reason.

“We welcome the Government’s recent commitment to change the framework for development contributions. This would help councils recover more of the costs from Fast-track housing projects.

“We support a Fast-track regime for infrastructure and housing and the Government’s wider programme to break down barriers to building more houses.

“But the reality is the Government didn’t get cost recovery settings right from the get-go. That means developments can go ahead without regard for local housing or infrastructure capacity, while existing ratepayers are left footing the bill.

“While proposed changes to development contributions will help councils recover the costs of future growth, they come too late for nearly 40 developments that have already been approved or referred to Fast-track panels. 

"Some of these developments are in rural areas, well beyond existing council infrastructure networks. Auckland Council estimates that Auckland’s share of these projects alone could mean around $1.5 billion in foregone development contribution revenue,” said Dan Gordon.

Dan Gordon says the changes LGNZ has proposed today would help councils and the Government work together to ensure growth happens in the right places and at the right time, with the infrastructure and services needed to support it.