Housing and Urban Development Authority important step but wider reform needed
“The new Housing and Urban Development Authority (HUDA) will help the Government cut through red-tape to deliver urban
regeneration in our largest cities, but to deliver affordable housing the Government must now turn its attention to
greenfield development and wider policy reform,” says Stephen Selwood Chief Executive of Infrastructure New Zealand.
“On Saturday, the Government announced that it will consolidate Housing New Zealand, HLC and Kiwibuild into a new
fit-for-purpose urban development authority with powers to zone and deliver new communities.
“This initiative is desperately required to cut through an existing local government, planning and funding system which
is no longer fit for purpose.
“The Resource Management Act’s effects-based approach to planning and consenting infrastructure and development has not
only failed the environment but tipped the balance of decision making too far in favour of existing land uses and
prevented New Zealanders from access to housing.
“Councils are restricted by the laws in which they work and by constraints on funding and borrowing. Their world view
also reflects the boundaries of their territory and responsibilities.
“HUDA will be in a better position to manage wider and more complex national challenges around growth management,
homelessness and cumulative environmental impacts, to name but a few.
“Like the Government’s new infrastructure body, HUDA will have the capacity to integrate across agencies to ensure we
deliver not just individual services, but communities and public outcomes.
“Minister Twyford has described HUDA as being a market facing agency. This is fundamental as commercial expertise in
urban development and the ability to work with private land owners, developers and infrastructure providers will be key
to success.
“HUDA will be critical to light rail’s success in Auckland and Wellington. Without rapid intensification along light
rail corridors, demand for services will be insufficient to justify investment.
“However, HUDA will not be able to deliver a functional housing market on its own.
“To deliver housing that is affordable on New Zealand wages and salaries, policies like Auckland’s Rural Urban Boundary
must be changed to enable new development at scale in greenfield locations.
“Rural land prices need to be leveraged to pay for infrastructure while delivering homes under $400,000, not captured by
a dysfunctional approach to zoning and growth management which sees new sections alone cost more than this.
“The Government’s announcement two weeks ago of the Milldale development enables new infrastructure to be funded and
financed away from councils, thereby relieving existing residents from concerns that they are subsidising growth.
“The next logical step is for the Government to work with Councils and the private sector to acquire greenfield land at
scale in suitable locations, rezone it for development, deliver the infrastructure and capture the value uplift to
deliver affordable houses.
“Major developers with an eye on building new homes at scale and pace to crack the housing crisis will now be keenly
awaiting access to competitive land at prices New Zealanders can afford, consistent with the Government’s Urban Growth
Agenda.
“With both brownfield and greenfield policy reform effected, our cities will be able to grow fairly, affordably and
sustainably and the Government can in 2019 turn its attention to the ultimate solution to the problem – reforming New
Zealand’s unworkable local government, infrastructure funding and planning system,” Selwood says.
ENDS