Megan Woods: Govt promises 8000 new homes as part of Infrastructure Acceleration Fund

More than 8000 new homes are expected to be built in several centres around New Zealand as part of a new infrastructure investment.

Housing Minister Dr Megan Woods announced in Ōtaki the new homes would be built across 20 years in Rotorua, Ōmokoroa, Kaikōura, Ōtaki, Napier, Gisborne and New Plymouth.

The Bay of Plenty is expected to reap the greatest rewards from the funding, with more than 5600 homes and $123 million in funding.

In total, the Government planned to spend $179m nationally on infrastructure such as pipes and roads.

The Infrastructure Acceleration Fund (IAF) was a component of the Government's $3.8 billion Housing Acceleration Fund announced in March 2021.

It is a contestable fund of at least $1 billion and was launched on 30 June 2021.

Woods said key projects will include works such as extensive stormwater management in both Rotorua and Napier, a State Highway 2 intersection in Ōmokoroa, and a local link road and cycleway in Kaikōura.

"Upgrading water supply and roading in other projects will also deliver greater housing capacity."

She said it also ensured to deliver funding to developments in areas of the country with some of the greatest need of additional supply.

Homes built will range from elderly housing, papakāinga, public, affordable and market housing.

"The only way we are going to solve the housing crisis is to build more houses."

Woods said the Government was making the most investment since 1970 in land, housing and infrastructure like pipes and roads to enable new housing.

"There is no silver bullet to solve the housing crisis but investments like this will make a difference."

Twenty-eight more projects were undergoing due diligence and negotiations which were expected to conclude in coming months.

There had been enormous interest from regions wanting to build more housing but who needed funding support for it to be viable.

"We know a massive piece of the missing puzzle in the housing crisis we inherited is infrastructure; there simply hasn't been enough investment in getting land build-ready."

Rotorua would receive the majority of the funding, with almost $85 million to fund stormwater solutions. The Western Bay of Plenty's Ōmokoroa will receive $38.4m

Rotorua Lakes Council expected this infrastructure to enable over 3000 dwellings.

The city's mayor Steve Chadwick said the announcement was huge.

"This funding will enable us to accelerate this programme of work and reduce the timeframe for completion from thirty years to seven years."

Another $38.4m will fund a State highway 2 intersection upgrade in Western Bay of Plenty to provide safe access to the Ōmokoroa peninsula and cater for the next 15 years of anticipated growth for the town.

Western Bay of Plenty mayor Garry Webber said it would enable up to 2500 homes, with a mix of standalone homes, affordable homes and medium-density housing.

More than 1000 homes were expected to be enabled in Ōtaki in ten years from about $29.32m of the funding allocated. This was to upgrade water supply and roading.

Kāpiti Coast District mayor K Gurunathan said Ōtaki had the highest level of housing need in the Kāpiti Coast with the greatest affordability pressures on residents.

"Only 20 per cent of renters can affordably pay the median market rent, with only 2 per cent able to buy a dwelling at the median market sale price."

He said solutions must lie in partnerships and it had worked with iwi partners, particularly Ngā Hapū o Ōtaki.

Napier's Maraenui will receive $12.4m for flood management work which the Napier City Council believed will provide network capacity for an additional 400 new homes, including public and affordable.

Napier City Council chief executive Dr Steph Rotarangi said the community's wellbeing will be enhanced by improving its housing stock.

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