Following a central government selection process, Motueka was included in a national group of projects to benefit from the Government’s Infrastructure Acceleration Fund (IAF).
A new wastewater main, stormwater upgrades and a new roundabout will be supported by funding of $1.2 million to enable a housing development on Māori-owned land.
It is expected this funding will accelerate the delivery of around 200 new homes in Motueka, which could include affordable, public and papakāinga housing.
A green belt with a wetland and native vegetation are among proposed plans for the Motueka West development.
The funding will not only boost housing opportunities in a growing part of the district, but also assist with infrastructure within Motueka.
Council is 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.
As well as Motueka, the second tranche of IAF funding sees $192 million supporting critical infrastructure projects in Lower Hutt, Nelson, Rangiora, Ngāruawāhia, Hastings, Whanganui and Lake Hāwea, enabling around 11,500 homes over the next 10 – 15 years.
Administered by Kāinga Ora – Homes and Communities, the IAF was launched by the Government in June 2021.
The IAF is a contestable fund of approximately $1 billion, open to territorial authorities, developers and iwi and designed to allocate funding for infrastructure to enable housing development – such as transport, three waters or flood management.
Read more about the announcement: Home :: Kāinga Ora – Homes and Communities(external link)
The articles below refelect the steps and milestones that were part of the selection process.
A 200-home development in Motueka has been included in a list of 35 projects invited to move forward with Infrastructure Acceleration Fund (IAF) applications.
Managed by Kāinga Ora, the IAF is a contestable fund of at least $1 billion nationally, to allocate funding for key infrastructure to enable housing development within five years.
The IAF was open to territorial authorities, developers and iwi to apply for councils to be funded for transport, three waters or flood-management projects needed to service the development of new or additional housing in the short to medium term.
Over 200 expressions of interest were received nationwide in the initial stage of the IAF in June 2021, with over $5 billion requested from the approximately $1 billion fund.
Tasman District Council was invited to submit further proposals for three projects to the next stage of the IAF process in October 2021. These represented 621 homes in Tākaka (100), Motueka (200) and Wakefield (321).
Following further evaluation of proposals, Kāinga Ora announced this week the 35 projects throughout New Zealand which have been invited to enter the final negotiation stage of the IAF process.
Tasman District Council was informed that the Motueka West Phase 1 Whakarewa Street Proposal submitted in conjunction with Wakatū Incorporation, was successful.
However, the Mohua Venture proposal in Tākaka did not progress.
The Wakefield Village proposal - the largest of the three projects which involved the majority of the funding sought - did not progress to the next stage either.
Tasman District Council strategic policy manager Dwayne Fletcher said while there was some disappointment not to have the Wakefield and Mohua projects included in this week’s announcement, the invitation to progress the Motueka West proposal represented a good outcome being achieved for housing in the combined market.
Partners in all applications had been advised of the decision, Dwayne said.
Wakatū Incorporation Group General Manager of Property and Commercial Iain Sheves said “this is exciting news which represents a big milestone in this project, albeit with significant work ahead before the real development can begin.”
Council would be working with Kāinga Ora in the coming weeks to meet all identified criteria as part of the final evaluation.
Kāinga Ora will look to make decisions around final funding from July onwards.
The Tasman District Council has been invited to submit further proposals for three projects to the next stage of the Government’s Infrastructure Acceleration Fund (IAF) process.
Managed by Kāinga Ora, the IAF is a contestable fund of at least $1 billion nationally, to allocate funding for key infrastructure to enable housing development within 5 years.
The three Tasman projects to get through the first round represent 621 homes in Tākaka (100), Motueka (200) and Wakefield (321).
Being invited to the next stage validates the successful partnership shared with developers and the Council, said Tasman Mayor Tim King.
“The IAF is the funding catalyst enabling us to bring forward a number of developments to benefit the areas within our District hardest hit by the housing situation.
"While we were unsuccessful with applications for other projects in the District, we are pleased to get through to the next phase for these three projects.
"This process is far from over though with the next stage investigating all infrastructure demands, the comparative investment by landowners, links to transport and engagement with iwi."
“We have until 16 December to furnish the extra information and make the Council decisions to bring forward planned investment to leverage the IAF funding. This decision may require a degree of consultation.”
While this process is designed to accelerate development to ease pressure on housing demand the current RMA and Building Act still have a bearing on the outcome of each of the specific developments. In addition, success in the next stage does not affect potential development contribution fees or charges.
Staff will be working with developers to develop the proposals further and clarifying the potential impact on the Council’s finances. Staff will discuss these with the Council before seeking formal approval of our proposals for submission in December.
Potential funding impact
An important step in potentially providing up to 5000 new homes for Tasman district has begun, with 10 developments recommended by Council for Infrastructure Acceleration Fund approval.
The potential developments are spread between Richmond South and West, Wakefield, Tākaka, Māpua and Motueka as well as two neighboring developments located between Tasman village and Māpua, with each project potentially providing between 100 and 2,500 dwellings.
The IAF provides an opportunity to source significant external funding for affordable housing without a significant impact on the Council’s rate levels. The contestable Kāinga Ora-administered Fund is a key component of the Government’s $3.8 billion Housing Acceleration Fund announced in March.
To be eligible, infrastructure projects must be new or upgraded three waters, transport (including local roading, state highways, public transport infrastructure, footpaths and cycleways) or flood management infrastructure, which is primarily to enable new houses to be built within 10 years.
For Tasman District, an eligible project needs to enable at least 100 additional dwellings if it is in the Urban Environment (Richmond, Hope, Brightwater, Wakefield, Māpua and Motueka) or at least 30 dwellings for the rest of the district. In July, Council staff received 20 proposals from developers and Māori entities with 17 being initially assessed by Council.
Assessments were based on IAF criteria but also considered the likelihood of receiving consent, natural hazards, productive soils and consistency with the Future Development Strategy. Ten proposals were supported by the Council and Expressions of Interest were now being submitted to Kāinga Ora.
Kāinga Ora will notify the Council in October of the successful proposals with an invitation to the Request for Proposal (RFP) which closes in late December. Funding Agreements are scheduled to be finalised between March and October 2022.
Tasman District Council strategic policy manager Dwayne Fletcher said co-operation from multiple developers and landowners in similar areas had been positive, with indications they are prepared to provide at least 20 percent affordable housing as requested by Council. These would be generally higher density and/or smaller homes.
Fletcher said some of the land is not zoned yet but is being considered for housing under the existing and new Future Development Strategies.
Tasman Mayor Tim King said the level of infrastructure investment required in a high growth area is a challenge, and the IAF funding provides is an opportunity to help make that investment more affordable to Council and our community.
“These developments are spread around the district, catering for different community housing needs – there’s potential for around 4,000-5,000 homes in land that would be serviced if all areas were developed, and Kāinga Ora supported us.
“Most sites will also provide great opportunities to improve the surrounding environment - especially waterways - and to get around by walking, cycling or by proposed public transport.”
Tasman’s housing numbers have been on the increase in recent years, with 633 new dwellings consented in the year to May.
However, of the approximately 11,800 new dwellings required over the next 30 years, 60 per cent of these homes will need to connect to Council’s infrastructure.
Council plans to enable growth within Tasman by investing $317 million in growth related infrastructure over the next 30 years.
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Tasman District Council is looking for expressions of interest from Iwi, developers and landowners to form partnerships and apply for funding from the government’s Infrastructure Acceleration Fund (IAF).
The contestable funding is part of the 3.8-billion-dollar Housing Acceleration Fund announced by the Government in March. The money is administered by Kāinga Ora.
The fund has been established to assist in covering infrastructure projects that unlock housing development in the short to medium-term and enable a meaningful contribution to housing outcomes in areas of need. It aims to increase the pace and scale of housing delivery by helping to fund critical infrastructure needed for developments.
By increasing the supply of build ready land, the IAF will help to increase the number of homes that can be built, particularly in locations of high housing demand and with good access to public transport, jobs, education, and amenities.
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