Legislation For Housing Accords, Land Supply
Hon Dr Nick Smith
Minister of Housing
16 May 2013
Special legislation to enable councils and the Government to streamline new housing developments in areas where housing
is least affordable will be introduced to Parliament today.
“Council decisions can affect the entire economy by increasing house prices, driving up rents, and putting increased
pressure on family budgets,” Housing Minister Nick Smith says.
“Housing supply constraints are causing widespread concern about financial stability, with potentially negative impacts
on interest rates and the exchange rate.
“The Government’s first preference is to partner with councils to improve housing affordability.”
The legislation will apply for three years and allows special housing areas to be designated under accords between the
Government and councils. Council approvals for new housing in those areas can then be managed under a streamlined
process.
The first accord has been agreed with the Auckland Council and the first special housing areas are expected to be
designated later this year.
“The developments need to be predominantly residential, in greenfields or brownfields areas adequately supported by
infrastructure, limited to low-rise construction, and in areas of high housing demand,” Dr Smith says.
“If an accord cannot be reached in an area of severe housing unaffordability, the Government can intervene by
establishing special housing areas and issuing consents for developments.”
Budget 2013 includes $7.2 million over four years to help the Ministry of Business, Innovation and Employment fund the
initiative.
The legislation will go through its first reading as part of Budget 2013 before being sent to a select committee for a
shortened six-week timetable for urgent consideration and progress.
“This legislation is an immediate and short-term response to housing pressures in areas facing severe housing
affordability problems,” Dr Smith says.
“This provides time for the Government’s substantive changes to resource management reforms and the subsequent council
planning processes to bear fruit and address these land and housing supply issues in the longer term.”
ENDS