Formal submissions open on Inclusionary Housing Plan Change

Formal consultation is now open on a proposed variation to introduce Inclusionary Housing rules into Queenstown Lakes District Council’s (QLDC) Proposed District Plan (PDP). 

The proposal would require most new residential subdivisions and developments to pay an ‘affordable housing financial contribution’, with the money collected by Council and provided to Queenstown Lakes Community Housing Trust (QLCHT) or another registered Community Housing Provider, providing them with an ongoing funding stream to provide access to affordable housing.

QLDC General Manager Planning & Development, Tony Avery acknowledged housing was one of the biggest challenges faced by the community, and lay at the heart of creating secure, connected, and caring communities, creating jobs and a diverse economy.

“I would encourage everyone to set aside time to read through the changes we’re proposing, and to make a submission on this variation,” said Mr Avery.

“The proposed Inclusionary Housing Plan Change will support access to affordable housing for low-moderate income earners, helping to attract and retain skilled workers in the district. It will also support people to stay within the Queenstown Lakes, rather than living further afield in cheaper locations and commuting long distances to work.”

Mr Avery added that since 2003, Council had successfully used inclusionary housing as a way of securing affordable housing contributions from developers on a case-by-case basis, and the proposed rules would formalise that requirement and provide more certainty that the construction of affordable housing can continue.

Under the proposal, an ‘affordable housing financial contribution’ would be payable either at the time of residential subdivision approval and/or when building consent is issued for a new build (including apartments in business and mixed-use areas).

A contribution would not be applied to residential flats located on an existing house site.

“The proposed rules do not apply until a decision is made by Council on the plan change, and a financial contribution will not apply in a number of areas where pre-existing agreements with developers are in place to provide affordable housing contributions,” said Mr Avery.

“As this is a proposal and subject to formal consultation, changes may be made as a result of submissions.”

More information on the Inclusionary Housing Plan Change and how to make a submission, details on the proposed contribution, how it’s calculated and how they’ve been set can be found at www.qldc.govt.nz/inclusionary-housing.

Formal submissions close on 24 November 2022, and will be followed by a hearing at a date to be confirmed in 2023.

ENDS|KUA MUTU.

Media contact: communications@qldc.govt.nz or call 03 441 1802.

FURTHER INFORMATION | Kā pāroko tāpiri:

More information on the proposed Inclusionary Housing Plan Change can be found at www.qldc.govt.nz/inclusionary-housing.

The proposed financial contribution will not apply in the following areas. This is because a pre-existing agreement to provide affordable housing contributions has already been made with developers:

• Jacks Point (including Hanleys Farm), Bullendale, Coneburn, Arrowtown Retirement Village, Northlake, Queenstown Country Club, Longview, Hikuwai, Riverside Park, Peninsula Bay, Allenby Farms, Quail Rise, Shotover Country, Homestead Bay, Tomasi.

Summary of how the proposed contribution would work:

The proposed ‘affordable housing financial contribution’ would be payable either at the time of residential subdivision approval and/or when building consent is issued for a new build (including apartments in business and mixed use areas). The contribution will not be applied to residential flats located on an existing house site). 

The proposed contribution for a subdivision would be:

The proposed contribution for a new house in urban areas would depends on whether a contribution has already been paid by the developer that completed the subdivision.  

Where new houses are to be built on lots that have not already been subject to an affordable housing contribution (for example building on a vacant lot that was created before the proposed rules come into effect), the contribution would be the lesser of either:

• 2% of the anticipated sales value of the additional house(s) created, or

• A set rate of $150 per square metre of the net increase in residential floorspace.

For example: a new house on a vacant lot with a floor area of 150m² and estimated value of $800,000 would trigger a contribution of $16,000.

A $1.5 million new house with a floor area of 250m² would trigger a contribution of $30,000.