Opening of the Infrastructure Acceleration Fund for businesses

Questionable funding criteria established for new housing infrastructure

Call for expressions of interest from town halls, iwi and developers published on June 30

Criteria for accessing at least $ 1 billion from the $ 3.8 billion Housing Acceleration Fund (HAF), announced in March, are now available, and a call for expressions of interest will be published on June 30. , announced Housing Minister Megan Woods.

“This is a key step in our plan to accelerate the development of ready-to-build land to allow more homes to be built at a pace and on a scale,” said Megan Woods.

“The housing supply crisis is a problem that has been brewing for decades and will take time to recover, but we are starting to make progress in increasing the supply and this fund will make a real difference in increasing housing. supply of housing by helping to overcome a key problem. barrier to construction – access to basic infrastructure.

“Investing in infrastructure has been identified by local councils and others as one of the key actions the government can take to increase the supply of housing in the short term.

“The Infrastructure Acceleration Fund is designed to allocate funds to infrastructure projects that will unlock housing development in the short to medium term.

“It will revive housing developments by funding necessary services, such as roads and pipes to homes, which are currently delaying development.

“It’s about getting as many homes as possible in the places across the country where they are needed as quickly as possible.

“It is available to councils, iwi and developers to start advocating for infrastructure funding, with successful projects aimed at creating several new affordable homes quickly and in the right places; in urban centers as well as in regions, ”said Megan Woods.

Eligible projects include the construction or modernization of infrastructure for drinking water, wastewater, wastewater, roads and flood management, which fully or mainly allows the construction of new and additional housing. Eligible costs include preliminary feasibility studies, design, authorization and, in some cases, land costs.

The IAF will be open to municipalities, Iwi and developers and will prioritize funding for:

Brownfield intensification and brownfield expansion with access to amenities and opportunities

Developments where investments in infrastructure might otherwise not be funded or not be funded quickly enough to meet housing demand

A distribution of projects in several regions, including large urban areas and regional centers

Value for money through co-financing, contributions and commitments from third parties, including local councils

A stable pipeline of construction activities

· Alignment with broader government goals such as good urban planning, partnerships with iwi and Maori and the transition to a net zero emission economy.

In large urban (Tier 1) environments such as Auckland, Tauranga, Wellington and Christchurch, projects are expected to deliver at least 200 additional homes.

In other urban centers (level 2) such as Rotorua, Palmerston North and Nelson, projects are expected to deliver at least 100 additional housing units. In other parts of the country, the projects are expected to result in at least 30 new homes.

“Not all applications will be funded; we have weighted the fund to support projects that will provide the most homes where they are needed most, ”said Megan Woods.

“In order to bring in a significant new supply, we need to finance larger scale projects in large urban areas, as well as smaller scale projects outside the main centers, where there is also a housing shortage.

“We have been working proactively with New Zealand’s local government since the March announcement to identify these smaller-scale opportunities. We know the housing crisis is being felt across New Zealand.

“Final decisions have yet to be made on how the entire Housing Acceleration Fund (which has already set aside $ 350 million for a Maori Infrastructure Fund) will be used, and we will also consider how best to build on what we started in our Major Projects, which are already transforming the urban environment.

“With the new $ 2 billion borrowing capacity for Kāinga Ora, the central government will help give the green light to tens of thousands of house constructions,” said Megan Woods.

Further decisions regarding the Fund will be made throughout the year.

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