UDINZ Explainer - The CHFA Model

Community Housing Funding Agency
Community Housing Funding Agency (CHFA) provides financing solutions for Community Housing Providers (CHPs) in New Zealand.  It was established by and is managed by Community Finance.

CHFA's Role
The primary purpose of CHFA is to provide more efficient finance at scale for the CHPs which are delivering social and affordable housing at scale. It does this through aggregating the borrowing needs of eligible CHPs, unlocking more favourable terms than if CHPs raised the debt directly.  CHFA is already the largest lender to CHPs in New Zealand.

UDINZ Explainer - Infrastructure Funding and Financing Act 2020 (IFF)

While the Infrastructure Funding and Financing Act 2020 (IFF) is not new, there is considerable interest in it and how it can be used after recent announcements of the governments "Greenfield Fund". We have extracted information that is publicly available on government websites and turned it into a short "Explainer" document for those unfamiliar with IFF. This is a new type of resource for members which given interest we have made publicly available it over time it may be a member only L&D resource.

UDINZ Submission on Christchurch City Council Development Contributions Policy 2025

Urban Development Institute of New Zealand UDINZ has submitted on the Christchurch City Council Development Contributions Policy 2025, which sets out the methodology that the Council is proposing to use to calculate the amount it charges for Development Contributions (DCs) levied on land or building developments that are perceived to increase demand on Council infrastructure.  That policy was last reviewed in 2021. We had hoped that council may seek a deferral in light of the impending change to a development levies system signalled by the coalition government, but all indications are council will not be withdrawing the consultation. 

With thanks to those who provided feedback to local committee member Mike Blackburn who marshalled the input of members in Ōtautahi Christchurch for our submission.

UDINZ Submission on Local Government (Water Services) Bill

The Local Government (Water Services) Bill aims to improve the provision of water services in New Zealand by enabling local authorities to better plan, fund, and deliver water services infrastructure.

A key aspect of the bill from the point of view of the development community is the introduction of a new framework for development contributions, which is intended to help ensure that growth is funded in a fair and sustainable way.

This legislation and future amendments proposed are of great significance to appropriate urban development and central to our members being able to efficiently and effectively deliver housing products to the market.

As a member association we released a white paper last year alongside KPMG entitled “Paying for Growth in the Water Sector : Key Choices for New Zealand” exploring some of these themes.

Growth charging is complex and there will always be debate over who pays for what and when. The approach to charging can influence not only who pays for what, but also the pace and pattern of urban development.

As New Zealand looks to provide greater financial sustainability in the sector and support housing and commercial development, the role of growth charges needs to be better established with a clear legislative basis, regulatory oversight, and sound practices for responding to growth. 

This will ensure that growth infrastructure is not an afterthought, competing for scarce resources with other investment priorities, but is  provided for through targeted funding

UDINZ Resource Management (Consenting and Other System Changes) Amendment Bill

We recently lodged a UDINZ submission on the Resource Management (Consenting and Other System Changes) Amendment Bill. That bill forms part of what the Government describes as Phase 2 of its RMA reform workstream. This phase encompasses targeted changes to the existing system and precedes Phase 3, which will see an entirely new Resource Management Act.

The changes to the bill which refer to intensification, reduced notification, simplified plan changes and exemptions for certain sorts of housing developments are applauded. These changes, alongside changes to heritage protections, and consenting for much needed infrastructure should make it easier and faster to develop new housing, which should help increase the supply of homes in New Zealand.

There are some concerns about aspects of the changes often in terms of detailed implementation and integration with national direction. Another consideration is how to preserve social licence with the (otherwise welcome) rationalisation of some of the  stakeholder considerations and ability to challenge decisions.

A Local government focus on hazards is supported, but more work is ideally required on hazard definition and what amounts to appropriate mitigation at a site or precinct level, so it does not hamper housing growth.

As regards Ministerial interventions, there is a view that generally such interventions should operate positively, but there's recognition they could undermine well understood local plans anticipated by the development community if not utilised sparingly.

National Infrastructure Plan Submission to Te Waihanga

The New Zealand Infrastructure Commission – Te Waihanga is seeking feedback on the National Infrastructure Plan discussion document: “Developing an enduring national infrastructure plan”. Infrastructure is an enabler for housing and urban development and vice versa and UDINZ therefore takes a real interest in what is happening in the infrastructure space particularly, given more recently, developers (as a proxy for those who benefit from the infrastructure - homeowners) are being regarded as a party that will help fund infrastructure. We have lodged a submission in response to the discussion document.

Strategic Growth Corridors Report

We were pleased today (Wednesday 4 December) to launch our latest thought leadership piece in collaboration with Arup: our Strategic Growth Corridors Report.

Central and local government are seeking to change the way the private and public sector plan for and deliver housing and urban development. There is also a strong mandate to close the infrastructure deficit and strengthen our national approach to transport infrastructure delivery to ensure a more coordinated model that embeds efficiency, value for money, and resilience.

Existing mechanisms and models fall short. Strategic growth corridors, where housing density is intentionally located, clustered around transport and adjacent to employment, housing, and recreation may be a solution. When done effectively (with the zoning uplift aligned with value capture mechanisms) a range of benefits across economic, social, and environmental domains results.

The drivers for all parts of the ecosystem need to be considered when co-designing the approach to be taken.

Life in Medium Density Housing in Tāmaki Makaurau / Auckland Summary

Over the last 10 years there has been a shift in the types of housing being consented in Auckland, from predominantly low density typologies (i.e. standalone houses) to large numbers of medium and high density typologies (i.e. apartments, terraced houses and duplexes). For example, in 2023, 62 per cent of new dwellings consented in Auckland were 'townhouses, flats, and units'. This relatively recent, and rapid, supply of medium and high density housing across Auckland is not only increasing housing options for Aucklanders but is also transforming the built environment.

Auckland Council is responsible for the review, approval and monitoring of residential housing under the Auckland Unitary Plan (AUP) and the Building Act 2004. The former influences the location and design of housing, and the latter influences the design and construction of housing in Auckland. The Auckland Design Manual (ADM) is a companion document to the AUP and provides non-statutory best practice guidance.

During 2023, Auckland Council's Economic and Social Research and Evaluation team and the Tamaki Makaurau Design Ope (Auckland Council's urban design unit) undertook a comprehensive mixed method study to investigate how Aucklanders are experiencing living in recently built Medium Density Housing (MDH).

The purpose of the study was to understand whether MDH is meeting the day-to-day needs of households living in it, what is working well and what could be improved. The results of this study provide a snapshot of Aucklanders' experience living in MDH delivered at a time of rapid intensification, under a particular policy and regulatory setting.

The study considered how households use the rooms and spaces in their home, as well as how they experience aspects such as the size of rooms, temperature of their home, the amount of storage, and perceptions of their privacy. The findings of the study also built knowledge Auckland Council's monitoring of the AUP, which looks at whether the Plan is enabling quality outcomes for residential development.

Attached below is the Executive Summary of that report which makes for interesting reading for those designing housing in the region and indeed across Aotearoa.

#MDH #upandout #Densitydonewell

UDINZ submission on Auckland Council Development Contributions Policy

Auckland Council (Council) is proposing a new Development Contributions Policy to take effect from February 2025.

Council are seeking feedback on:

• proposed changes to the development contributions policy for investments made over the next ten years

• the proposal to add projects to IPAs beyond the LTP period (after 2034)

• proposed changes to the policy for the Drury area

• other proposed changes for the policy.

This UDINZ submission draws on a range of perspectives across the urban development community with a particular focus on comments that suggest there may be unintended consequences on feasibility, housing supply and affordability and perverse outcomes that might not otherwise be understood.

UDINZ Feedback on Public Works Act 1981 Review

Toitū Te Whenua Land Information New Zealand (LINZ) is carrying out a review of the Public Works Act 1981 (“PWA”) as the agency responsible for the PWA.

With Cabinet’s agreement, the LINZ Chief Executive has established an expert advisory panel to provide independent, specialist advice to the review, and to engage with critical stakeholders ahead of any proposed reforms of the PWA.

Urban Development Institute of New Zealand UDINZ were invited due to our experience in urban development and infrastructure, to meet with members of the panel to share our insights and experience on:
➡ the PWA and the key challenges faced in terms of the acquisition and compensation functions in the Act as outlined above.
➡ The top 3-5 changes to the PWA to make the acquisition and compensation of land for public works more efficient, effective and clear.
➡ What in the PWA works well in relation to acquisition and compensation?

UDINZ Deputy Chair Steven Evans (from member Fletcher Living) and UDINZ Wellington Committee member Renee de Lisle (from member Greenwood Roche) appeared before the expert advisory panel on Tuesday 6 August 2024 to share thoughts with the panel for and on behalf of the Urban Development Institute of New Zealand.

A summary of the feedback given is set out in the attached document.

#PWAReview #UDINZAdvocacy

The submission can be viewed HERE

Urban Development Institute of New Zealand (UDINZ) Annual Report

Please find HERE a copy of our Annual Report for 2024.

UDINZ Submission on the Fast-Track Approvals Bill

Urban Development Institute of New Zealand UDINZ today lodged a Submission on the Fast-Track Approvals Bill (the Bill) which proposes to establish a permanent fast track approvals regime for a range of infrastructure, housing and development projects with significant regional or national benefits.

The proposed system will be a ‘one-stop-shop’ for resource consents, notices of requirement, and certificates of compliance under the Resource Management Act (1991) and various other legislation.

Our UDINZ submission draws on perspectives across the urban development community and learnings from the UDINZ Fast-Track Consenting panel discussion event held on March 27th 2024 in Te Whanganui a Tara Wellington (kindly hosted by member Bell Gully).

At that event we heard views on the Bill from our panel and attendees which included those from government agencies, iwi, professional advisors, consultant and other businesses, property developers and local authority representatives.

Because of the multifaceted nature of our membership there is not a single homogenous view of the UDINZ membership on the Bill.

Many support the intent of the Bill to provide a comprehensive consenting regime and the objective of reconciling and simplifying the requirements under competing pieces of legislation that impact a development.
Some, however, do have some concerns about the implications of ways the Bill achieves that. In this submission we therefore look to surface some of those diverse perspectives to contribute to the debate.

With thanks to Hannah Virk from Harrison Grierson who drew together these perspectives and worked with our CEO Adrienne L. Miller on this submission.

The submission can be viewed HERE

UDINZ Submission on the Draft GPS 2024

UDINZ was pleased to make a submission on the draft Government Policy Statement on land transport (GPS) 2024 released by the Minister of Transport for feedback. With thanks to Duncan Gibson from UDINZ member Aurecon who lead our work on this submission which can be viewed HERE

Auckland Council Draft Future Development Strategy

The UDINZ Submission on Auckland Council Draft Future Development Strategy can be viewed HERE

Urban Development Institute of New Zealand (UDINZ) Annual Report

Please find HERE a copy of our Annual Report for 2023.

MEDIA RELEASE FROM EBOSS

After a 45% increase over the last two years, some building products are set to become cheaper

Auckland, 4 April 2023
The 2023 EBOSS Construction Supply Chain Q1 Update (Q1 2023 Update) shows that price increases to building products have halved over the past six months and are set to stabilise even further as global pressures lessen and inventories continue to be well stocked. Read more HERE

Submission on Natural and Built Environment Bill & Spatial Planning Bill

UDINZ presented its submission on Natural and Built Environment Bill & Spatial Planning Bill in February 2023.
The link to the Paper is found HERE

National Construction Pipeline 2021

The National Construction Pipeline provides a forward view of national building and construction activity over a 6-year period.

The report is based on building and construction forecasting by the Building Research Association of New Zealand (BRANZ), and data from building economics consultancy Pacifecon NZ Ltd on known non-residential building and infrastructure intentions.

It includes national and regional breakdowns of actual and forecast residential building, non-residential building and infrastructure activity.

Read the report by opening the link HERE

Infrastructure Strategy

The Infrastructure Commission recently released its draft strategy: https://www.tewaihanga.govt.nz/strategy/strategy-development/

Please let us know your thoughts on this comprehensive piece of work.

Wellington - Our City Tomorrow

Wellington's Draft District Plan, Let's Get Wellington Moving and the Bike Network Plan have recently been put out for public consultation. Loads of information, Q&A's, drop-in session dates and details about the public consultation process can be found in the following link: wcc.nz/tomorrow

The public engagement materials for the mass rapid transit options and supporting information can be found at  www.lgwm.nz/hello

Please get in touch with UDINZ if you have any feedback we could consolidate into our umbrella response.

Natural and Built Environments Bill

Recently UDINZ presented its submission on the NBE Bill. The Parliamentary Paper Report of the Environment Committee summarises the submissions and details a series of recommendations that resulted from the consultation process.
The link to the Paper is found HERE

The Resource Management (Enabling Housing Supply and Other Matters) Amendment Bill

The Resource Management (Enabling Housing Supply and Other Matters) Amendment Bill is out for consultation. Will this Bill promote housing intensification at the expense of really good long term urban development outcomes? Have a look at the material put out by Government and make up your own mind:

• Urban Development Institute of New Zealand submission on the Resource Management (Enabling Housing Supply and Other Matters) Amendment Bill 

• https://environment.govt.nz/news/more-affordable-housing-choice-proposed/

• https://www.legislation.govt.nz/bill/government/2021/0083/latest/LMS566049.html

Development Contributions policy

Auckland Council is currently consulting on its Development Contributions policy. An outline of Council's proposals together with a timeline for feedback is set out clearly in a powerpoint presentation recently provided to UDINZ.

Members are encouraged to review this document and provide feedback. Read the document HERE

Timber Construction - Multi-Storey Light Framed Timber Buildings

BRANZ research, download the resource HERE

The Medium Density Housing (MDH) web resource

The Medium Density Housing (MDH) web resource is a one-stop-shop on how to achieve good MDH for New Zealanders. The resources cover guidance and good practice on MDH project development from consents, design, regional rules and construction to post-occupancy assessment and maintenance. Visit www.mdh.org.nz

Rockhopper

Please click HERE for the latest property updates from Rockhopper.

BRANZ

The following 2 papers were generated by BRANZ:
1. Urban Development Authorities
2. Mixed Urban Planning