Development Contributions

Posted on Wednesday, October 2 2013

Development Contributions News For New Zealand

There was some good news for developers and home owners building new houses in Tauranga City when Council announced in February 2012 that they were reducing subdivision contributions by up to 40% and development contributions when building a new home by 40%.

Auckland Council has also recently released a draft financial contribution policy for comment. It is proposed to implement the new policy on 1 July 2012.

The aim of this new policy is to introduce a uniform contribution region wide. Currently contributions are still being charged in terms of the policies of the former Councils that were amalgamated into the Auckland Council. There are significant variations between the charges of the former Councils. With the new policy, there will be small variations between the southern, central, western and northern parts of Auckland Council if the draft policy is adopted.

The proposed policy will be a uniform charge and not based on the value of the property. Previously properties with high land values could attract a reserve contribution of $30,000 and more. Under the proposed policy, the reserve component will be a fixed $7,454. Clearly there will be significant savings for some developers.

Certain areas of the former Manukau Council attracted large stormwater contributions. These contributions will now fall away. In terms of the former stormwater policy, Council entered into cost share arrangements to extend services to properties that had no stormwater services and could not be developed. The proposed contribution scheme does not appear to make provision for such a cost share arrangement.

As with most charges that Auckland Council has proposed, there have been winners and losers. No doubt, the same will apply to the proposed contribution policy.

For more advice on development and the proposed contribution policy, contact Andre Conradie: andre.conradie@rpc.co.nz

By Andre Conradie - RPC Land Surveyors

www.RPC.co.nz

+64 9 2737505 or +64 (0)272712070

Development Contributions NZ

 

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Expert's Bio

Andre Conradie

I have practised as a registered surveyor in South Africa for 18 years before moving to New Zealand in 2000. I have worked for the last 12 years as a registered surveyor in the greater Auckland area servicing the land development community. I am a director and shareholder of RPC Land Surveyors and responsible for managing the Auckland office. My primary role is to provide both existing and potential clients with development advise and overseeing current developments.

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