A report released by the Independent Hearing Panel (IHP) that heard Queenstown Lakes District Council’s (QLDC) Inclusionary Housing Variation has recommended the Variation be withdrawn.

The IHP suggested the housing affordability issue should be the subject of a mix of regulatory and non-regulatory options, and preferred a package of targeted measures over the Variation alone to increase affordable housing provision in the Queenstown Lakes.

The Variation would have required most new residential subdivisions and developments to make a contribution of either land or money to Council, which would have been used by a registered Community Housing Provider to develop housing to assist low-moderate income earners.

QLDC General Manager Planning & Development, Dave Wallace acknowledged the Panel found more research and assessment was required to confirm whether a Variation such as the one put before them would be effective.

“Staff and expert advisors developed a detailed case for the Variation, on the basis that inclusionary housing rules could help deliver more affordable housing, in the same way developer agreements have been successfully used with specific developments since 2013,” said Mr Wallace.

“However, the Independent Hearing Panel considered there was not enough research, analysis, and assessment of several alternatives that could be used to address housing affordability, meaning they could not make a recommendation in favour of the proposed Inclusionary Housing Variation.”

Specifically, the Panel considered more research and assessment was required of other options, including:

1. The options of providing funding through rates and development contributions;
2. Providing more affordable housing through plan provisions (urban intensification) and partnering with other organisations (central government); and
3. Directly addressing a primary cause of the affordable housing issue / lack of rental housing, being the increase of Residential Visitor Accommodation.

Work is already in progress on most of the alternatives put forward by the Panel, with options around plan provisions, partnerships, and Residential Visitor Accommodation (RVA) all previously identified to support key actions of QLDC’s Joint Housing Action Plan (JHAP) and to improve housing outcomes in the district.

Mr Wallace noted Council had provided evidence on these options in the case for the Inclusionary Housing Variation, but these mechanisms remained a work in progress and their effects upon the district weren’t fully understood yet.

The Independent Hearing Panel confirmed QLDC’s position that a range of Resource Management Act (RMA) and non-RMA methods were needed to address the issue of housing affordability in the Queenstown Lakes District.

The Panel also confirmed the Variation would have assisted with implementing central government’s National Policy Statement on Urban Development (NPS-UD), and Council’s economic case that any potential negative impact on the local housing market was likely to be short-term only.

These were fundamental questions responded to by Council in the face of challenges from some submitters and legal and planning advisors.

The recommendation report provided by the Independent Hearing Panel will be considered by Elected Members at the Full Council Meeting on Thursday 1 August.

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