Kāinga Ora says it is focused on building new homes to meet a pressing need. Photo: RNZ / Nate McKinnon
The state housing provider is rejecting claims of anti-competitive behaviour relating to a proposed housing development in South Auckland that it refused to fast-track.
Kāinga Ora is being sued by property developer Winton. Winton wanted to build more than 4000 homes and three retirement villages in Papakura, and asked Kāinga Ora to use its special powers under the Urban Development Act to fast-track the project.
Winton claimed Kāinga Ora said it was "too busy" to process private sector applications.
It also accused the state agency of overpaying for land, cutting out the private sector.
Kāinga Ora rejected those claims. General manager urban planning and design Katja Lietz said the agency remains focused on building new homes to meet a pressing need for all New Zealanders.
"Separate from our public housing programme, our urban development role is about increasing housing stock for all Kiwis, providing a range of housing options to enable more people to own their own homes in locations close to jobs, transportation, education and other amenities.
"Our urban development work is focused on creating thriving communities to benefit all New Zealanders, generally going over and above what the private market is able, or willing, to do."
She said through provisions in the Urban Development Act 2020, Kāinga Ora can help advance developments that might have otherwise struggled due to challenges such as needing collaboration between multiple parties or funding constraints.
Lietz said Kāinga Ora must have confidence that progressing a development under this legislation is appropriate for the development.
She said the information Winton made available to the agency regarding Sunfield did not provide this confidence, which is why Kāinga Ora did not support fast-tracking the development proposal.
"We have done many large developments amounting to hundreds of millions of dollars with Winton and we gave the Sunfield proposal serious consideration.
"But there always has to be a good reason to depart from usual planning and consenting requirements and we couldn't see that with the information Winton provided us."
She said Kāinga Ora was surprised Winton had not briefed Auckland Council, Waka Kotahi or Ardmore Airport - which would be a next-door neighbour - on its proposed development.
Auckland Council had publicly expressed concerns about the flood risk at the site which it would have wanted to address, and users at Ardmore Airport were concerned about a risk of aircraft noise sensitivity.
Lietz said Winton had also refused an offer from Kāinga Ora to attend a joint meeting with Auckland Council to discuss the Sunfield proposal.
Kāinga Ora is also rejecting Winton's claims about its land purchases.
Lietz said the agency was not the highest bidder for Ferncliffe Farm, a site at Tauriko West in Tauranga which Winton had also wanted to buy, and understood its bid was accepted because it guaranteed payment in advance of development.
"Ferncliffe was purchased to address a need for affordable housing in Tauranga, over and above what the market has been providing."
When Winton sought legal action in October, National housing spokesperson Chris Bishop said in the midst of an escalating housing crisis, the government should be doing all it could to encourage the private sector to build more houses.
"It's no wonder Winton thinks this is anti-competitive behaviour, particularly when Kāinga Ora repeatedly outbids the private sector," Bishop said.
