Massive government infrastructure spend to unlock thousands more homes, stimulate growth

Critical infrastructure projects to kick-start new housing developments, and accelerate growth in Lower Hutt, Nelson, Rangiora, Ngāruawāhia, Hastings, Motueka, Whanganui and Lake Hāwea are being made possible thanks to a massive $192 million Government investment, Housing Minister Megan Woods announced in Hastings today.

"This Government infrastructure funding helps councils, iwi and developers make sure critical infrastructure like pipes, roads and wastewater connections, is in place, so thousands more homes can be built and communities can thrive.

"The investment, announced today, is expected to enable around 11,500 homes across multiple housing developments over the next 10 to 15 years, including public, affordable, market and papakāinga housing.

"The projects, which otherwise may not have been possible, or faced significant delays, include road improvements and upgrades to the wastewater network in Hastings, approximately two kilometres of new stormwater pipeline in Lower Hutt, a new reticulated wastewater treatment connection in Lake Hāwea, and a road extension in Whanganui.

"Our strong economic management and advantageous global fiscal position means we are well placed to build on our investments in the critical services New Zealanders need, like stimulating growth, addressing climate change, and of course housing.

"Direct Government investment in infrastructure through our Infrastructure Acceleration Fund (IAF) shows how we as a Government are not afraid to do things differently and supports our plan to drive up housing supply, ultimately getting more people into affordable, warm, dry, homes and onto the housing ladder.

"Today's announcement follows on from earlier IAF funding allocations of $6.1 million in December 2021 for Kenepuru Landing in Porirua, and almost $179 million in July 2022, which was shared between seven regions (Rotorua, Ōmokoroa, Kaikōura, Ōtaki, Napier, Gisborne and New Plymouth).

"This means, to date, around $376 million in IAF funding has been committed to critical infrastructure projects throughout the country. Combined, these IAF-funded projects are expected to enable around 20,000 new homes in areas of high housing need.

"There are a further 15 IAF proposals currently undergoing due diligence and negotiation, and we look forward to announcing more successful proposals in the coming months as agreements are signed.

"We know the only way we are going to solve the housing crisis, and to bring costs down, is to build more houses," Megan Woods said.

- ENDS -

Read more about the IAF-funded projects in Tranche Two:

Significant increase in development capacity for Lower Hutt's RiverLink project

Lower Hutt's RiverLink and Valley Floor intensification project will receive $98.9 million for major stormwater upgrades, including approximately two kilometres of new stormwater pipeline, pumping stations and outfalls. As part of a wider network response, Hutt City Council believes the infrastructure will unlock development and provide capacity for around 3,500 new homes.

"This funding is a significant gain for Lower Hutt as it will enable us to undertake desperately needed infrastructure investment to support the building of new homes as part of RiverLink and on our valley floor," says Lower Hutt Mayor, Campbell Barry.

$36 million for Nelson enables 1,000 new homes in the central city

Around $36 million has been committed to support the intensification of Nelson's central city. The IAF funding will be used for transport and three waters infrastructure to unlock approximately 1,000 new homes - which the Nelson City Council expects could result in a ten-fold increase in the number of central city residents.

More affordable housing and improved environmental outcomes signalled for Lake Hāwea

Lake Hāwea will receive $24 million for three waters infrastructure, including a new reticulated wastewater treatment connection which will improve environmental outcomes and increase network capacity to help meet anticipated growth in the area. It is expected the IAF-funded infrastructure will ultimately enable around 880 new homes, including more affordable housing, both within the Longview Special Housing Area and general housing stock in line with QLDC's demand projections through to 2041.

Queenstown Lakes District Council Chief Executive Mike Theelen says the funding would make a significant difference to the Council's three waters programme.

"Being one of the fastest-growing districts in the country has naturally put pressure on local infrastructure and housing affordability in recent years, especially for some of our smaller communities like Lake Hāwea."

"Our current investment programme is the largest ever undertaken by this Council and this additional funding will allow us to continue improving network capacity and resilience. In turn this will create more opportunities to increase the affordable housing our community so badly needs. The investment also aligns well with the Queenstown Lakes Spatial Plan which provides for the long-term development of Lake Hāwea and other communities," Mike Theelen said.

Māori housing enabled in Hastings

An $18.5 million investment in Hastings will improve road access and resolve capacity constraints in the district's wastewater network. This was a joint application between Hastings District Council and Heretaunga Tamatea Settlement Trust. The Council believes the IAF funding will enable around 4,000 new homes across multiple developments, including Māori housing on several papakāinga developments.

Hastings Mayor Sandra Hazlehurst says the funding will help address the region's housing shortage.

"Since 2019 we have been working hard with our Hastings Place Based Plan partners to deliver homes that meet the needs of our community. The government funding that helped support and kick-start this initiative has allowed us to move more quickly than would have previously been possible, and we've made huge progress with hundreds of houses either built or in the pipeline.

"This investment unlocks further capability to address what is a long-term issue, and we are grateful for the Government's ongoing commitment and partnership to enable our community to have a place to call home," said Sandra Hazlehurst.

The Heretaunga Tamatea Settlement Trust is the post settlement governance entity for Heretaunga Tamatea. Chair Liz Graham says, "The successful joint application for IAF funding with Hastings District Council represents one of our first opportunities to invest commercially, socially, environmentally, and culturally in our people.

"Te tapuwae o Rongokao - tapuwae nui tapuwae roa. Seeding our footprint into the future like that of Rongokako - far reaching and broad," Liz Graham said.

New transport and three waters infrastructure for high-growth Waimakariri town

Rangiora will receive $5.7 million for transport and three waters projects, which is expected to accelerate the delivery of around 1,300 affordable and market homes within a large housing development in northeast Rangiora.

Waimakariri District Council Acting Chief Executive Jeff Millward says the IAF funding will help to bring a greater number of sections to the market much sooner than would otherwise be possible.

"We're delighted to see this area identified in our Proposed District Plan will be developed to provide much needed housing in Rangiora. Our District has been one of the fastest growing areas in New Zealand. Although growth has been occurring across the District, there has been a critical shortfall of new sections - specifically in our main township Rangiora. The development area aims to address the changing needs of the community through medium density housing with a significant portion being affordable homes on smaller sections supporting intensification under the NPS on Urban Development," Jeff Millward said.

The development area encompasses the Bellgrove Rangiora subdivision. Project Manager and Director Paul McGowan says, "Bellgrove Rangiora has worked closely with the Waimakariri District Council to help secure $5.7 million of funding from the Infrastructure Acceleration Fund. This funding will support the building of critical infrastructure required to unlock development of the East Rangiora Development Area which includes 1,300 new sections within the Bellgrove Rangiora development.

"The Bellgrove Rangiora development will provide multiple section options including a significant percentage of higher and medium density lots to enable affordable new builds to help address the critical shortage of new and affordable section options in Rangiora. Works on stage one of the Bellgrove development are about to commence," said Paul McGowan.

Housing growth unlocked in Ngāruawāhia

The Galbraith Street catchment area in the Waikato town of Ngāruawāhia will receive $5.32 million for three waters and transport infrastructure. The Waikato District Council expects this will enable approximately 200 new affordable and market homes within walking distance to the town centre and local schools, while also contributing to the potential for further housing growth on adjacent land.

Waikato District Council Chief Executive Gavin Ion says he is delighted: "Ngāruawāhia is a vibrant and caring community, rich in culture and history, and we're excited to see this be recognised. The funding boost provides immense opportunities for not just the community in Ngāruawāhia, but the entire Waikato district.

"Recognising development potential in the very heart of our district continues to support us to deliver on our Council vision - to create liveable, thriving and connected communities."

Next Construction Limited is a key developer for the project. Development Manager Andrew Wood says, "Next Construction Limited are excited to work with Waikato District Council to deliver much needed infrastructure in the Galbraith Street catchment which will accelerate the delivery of housing in this community".

Affordable and papakāinga housing enabled in Motueka

A new wastewater main, stormwater upgrades and a new roundabout in Motueka will be supported by $1.2 million from the IAF, to enable a housing development on Māori-owned land. The Tasman District Council expects this will accelerate the delivery of around 200 new homes, which could include affordable, public and papakāinga housing. A green belt with a wetland and native vegetation are among proposed plans for the development.

Tasman District Council Chief Executive Leonie Rae says the funding announcement would not only boost housing opportunities in a growing part of the district, but also increase infrastructure within Motueka.

"We are mindful that sufficient yet appropriate development outcomes that meet the needs of our community will be vital in the years ahead. Thanks to the combined effort of Tasman District Council, Kāinga Ora and Wakatū Incorporation, we are able to plan with more certainty to ensure these outcomes are achieved," Leonie Rae said.

Wakatū Incorporation CEO Kerensa Johnston says, "This is a critical project for Wakatū, focused on our community, and creating a vibrant and diverse place to live in the Tasman region - we are really pleased to see it progress."

Intergenerational housing planned for Whanganui

The extension of Carson Street in the Whanganui suburb of Castlecliff will receive $1.95 million for associated transport and three waters infrastructure. The infrastructure works will extend the road to enable approximately 340 additional homes in the area, with plans for intergenerational housing.

Whanganui District Council Chief Executive David Langford says, "This is a fantastic result for Whanganui. The funding will allow Whanganui District Council to quickly build the core infrastructure needed to get this development off the ground. An additional 340 homes will have a big impact on easing our housing pressures and we are looking forward to seeing the development get underway."

Tūpoho Investments Limited has partnered with Whanganui District Council on the project. Tūpoho Chair Ken Mair says: "We support genuine relationships with Iwi, Hapū and community within the Whanganui rohe and this is an exciting opportunity to advance this relationship through this venture. This housing project is a real opportunity to progress the housing aspirations of our whānau and community in particular the absolute shortage of housing we are experiencing in our community. The need for affordable and quality housing is paramount and will be of particular focus for all of us in this housing project," said Ken Mair.

Media contact: Jo Leavesley 021 839 835

Editor's notes:

• The Infrastructure Acceleration Fund (IAF) is a contestable fund of approximately $1 billion, designed to allocate funding for infrastructure to enable housing development - such as transport, three waters or flood management. It is part of the Government's $3.8 billion Housing Acceleration Fund announced in March 2021.

• Administered by Kāinga Ora - Homes and Communities, the IAF was launched by the Government in June 2021.
• The IAF was open to territorial authorities, developers and iwi to apply for transport, three waters or flood-management funding to service the development of new or additional housing in the medium term.
• The successful applicants (i.e. councils, developers and/or iwi) are responsible for delivering the IAF-funded infrastructure and building the homes it enables.
• All applications have been subject to robust evaluation, led by Kāinga Ora - Home and Communities, and involving input from other Government agencies, with final decisions made by the Ministers of Housing and Finance.
• Over 200 initial expressions of interest were received in the early stages of the IAF, with over $5 billion requested from the approximately $1 billion fund.
• Of the approximately 200 initial expressions of interest, applicants of 80 proposals were invited to submit a response to request for proposal in December 2021.
• In December 2021, $6.1 million of IAF funding was announced for Kenepuru Landing in Porirua, enabling over 400 additional homes.
• Thirty-five proposals were invited to progress the final due diligence and negotiation stage in May 2022.
• The first tranche of IAF funding was announced in July 2022. Further tranches are expected later this year and early 2023.

For more information on the IAF, please see www.kaingaora.govt.nz/iaf