11 Jul 2017

Govt gives loans to speed up 60,000 new homes

12:17 pm on 11 July 2017

Five councils will be the first to receive support through the government's housing infrastructure fund to build 60,000 new homes.

The McLennan housing development in Papakura.

Photo: RNZ / Kim Baker Wilson

Prime Minister Bill English made the announcement in Hamilton this morning.

The government's $1 billion fund will be used for network roading and water infrastructure on nine housing projects in Auckland, Hamilton, Waikato, Tauranga and Queenstown.

The fund provides interest-free loans of up to 10 years.

Mr English said the homes would be built faster - in some cases up to eight years earlier.

More than 10,000 of the homes will be in Auckland, at Whenuapai and Redhills, and 35,000 will be in Papamoa, Tauranga

The first homes are expected to be completed by late next year.

  • Auckland Council - $300 million - 10,500 houses: greenfield development (north-west) at Whenuapai and Redhills.
  • Hamilton City Council - $272m - 8100 houses: greenfield development (Peacockes) on southern edge of Hamilton.
  • Waikato District Council - $37m - 2600 houses : Te Kauwhata (new development on the shore of Lake Waikare).
  • Tauranga City Council - $230m - 35,000 houses: greenfield development at Te Tumu (eastern end of Papamoa) as well as a capacity upgrade to the Te Maunga Wastewater Treatment Plant and a new water treatment plant at Te Puke (Waiari).
  • Queenstown Lakes District Council - $50m - 3200 houses : Two new greenfield sites (Quail Rise South and Ladies Mile) on the Frankton Flats and an extension of the Kingston township.

Building and Construction Minister Nick Smith said the government would work closely with the councils and developers to ensure the projects were progressed at pace.

He said the next step was for the councils and the government to confirm the detailed funding agreements.

"There is also a huge amount of work required on resource consenting and construction of the works.

"The first earthworks will be under way this coming summer, the first homes consented early in 2018 and homes completed by late 2018."

View a PDF showing the location of each development and breaking down the funding support