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Inclusionary Housing Plan Change

We’re proposing to introduce Inclusionary Housing rules into the District Plan to help more people access affordable housing in the district. 

Public notification is expected to start on 13 October and we’ll update this page with the public notice and details on how to make a submission.  

In the meantime, we’ve provided the proposed provisions and answers to frequently asked questions below.      

About the proposal Summary of key facts Summary of the proposal Consultation FAQs, Section 32 report and proposed provisions

About the proposal

We’re proposing to introduce Inclusionary Housing rules into the District Plan to help more people access affordable housing in the district. 

The proposal would require most new residential subdivisions and developments to pay an ‘affordable housing financial contribution’.

This money would be collected by Council and provided to the Queenstown Lakes Community Housing Trust (or another registered Community Housing Provider), providing them with an ongoing funding stream to deliver their incredible work to provide access to affordable housing.

Housing is one of the biggest challenges our community faces.  It’s also at the heart of creating secure, connected and caring communities, creating jobs and a diverse economy.  This proposal is really important because it will support access to affordable housing for low-moderate income earners, helping to attract and retain skilled workers to the district.  It also supports people to stay within the district, rather than living further afield in cheaper locations and commuting long distances to work. 

Since 2003, we’ve successfully used inclusionary housing as a way of securing affordable housing contributions from developers on a case-by-case basis.  The proposed rules will formalise that requirement providing more certainty that the construction of affordable housing can continue. 

This is a complex but important topic for everyone in the district.  To help people understand what’s proposed we’ve summarised some key points and provided answers to frequently asked questions.  For those who wish to get right into the details, the  proposed rules are also available below.    

Summary of key facts

  • This is a proposal and will be subject to a formal public consultation process which starts on 13 October 2022.

  • The proposal may change as a result of submissions.

  • The proposed rules do not apply until Council makes a decision on the plan change following a hearing. This will take some time.

  • 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.

  • The proposed ‘affordable housing financial contribution’ is important to support the vital work of the Queenstown Lakes Community Housing Trust (or another registered Community Housing Provider).

  • Since 2007, the Trust has built and delivered a total of eight housing developments (119 homes) on land received through an inclusionary housing-type process, which along with other homes purchased has helped 244 local households remain in the area. Further housing developments (totalling over 100 homes) are also underway at Northlake, Hāwea and Arrowtown.

Summary of the proposal

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 apply to small units (residential flats) located on an existing house site). 

The proposed contribution for a subdivision would be:

New subdivisions that create vacant residential lots within existing urban areas

5% of the additional serviced lots created, to be provided to the Council as either a transfer of land or as an equivalent monetary contribution

Residential subdivisions in a Settlement Zone, Rural-Residential Zone, Wakatipu Basin Rural Amenity Zone Lifestyle Precinct or Special Zone

1% of the anticipated sales value of the additional lot(s), as defined in the proposed provisions

 

The proposed contribution for new residential development in urban areas would depend 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.

More details on the proposed contribution, how it’s calculated and how they’ve been set, can be read in the FAQs or proposed provisions below. 

Consultation

Consultation on this proposal will start on 13 October 2022 and we encourage everyone in the district with an interest to get involved and have their say.   

Every property owner in the district will be sent a letter inviting them to participate.  We’ll also be widely publicising the opportunity to get involved.


Want to talk about it?

If you have any queries on any of the information provided, how to make a submission or need help finding a particular document, please contact one of our dedicated duty policy planners on 03 441 0499 (Queenstown) or 03 443 0024 (Wānaka) or email us at pdpenquiries@qldc.govt.nz

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