Waipā looks set to become only the second council after Queenstown to use inclusionary zoning to address concerns around housing costs.
Inclusionary zoning is a planning tool which compels developers to make a proportion of houses in residential developments ‘affordable’. The most common measure of affordability is when a household spends less than 30 per cent of its income on housing.
Today’s Strategic Planning and Policy Committee accepted a staff recommendation that affordable housing provisions, specifically inclusionary zoning, be proposed for inclusion in Waipā’s District Plan. The District Plan is the rule book which guides how Waipā develops.
Today’s decision jump-starts a formal Plan Change process to the District Plan, specifically aimed at offering more affordable housing options in the district. The Waikato Housing Initiative (WHI) has provided a draft set of plan provisions which were a good starting point, mayor Susan O’Regan said.
“No-one thinks inclusionary zoning will be a panacea, or on its own will solve affordable housing issues in Waipā. But there is a serious problem out there around housing affordability and we need to do something. This is one pathway we can pursue and we should do it.”
O’Regan said inclusionary zoning was not new and worked well overseas. She noted Waipā already had the region’s first example of true affordable housing at the Peake Mews development in Cambridge.
The 47-home development on Cambridge Road was built by the Bridge Housing Charitable Trust and consented by Council in 2022. Bridge Trust owns the land under the Secure Homes Programme. Families buy the homes, selling them back to the Trust when they leave at the original price plus a sum linked to the Consumer Price Index. Homes are currently advertised on the website from $325,000.
“That’s the kind of innovative thinking we’d love to see more of,” O’Regan said. “Councils have been calling for nationally mandated inclusionary zoning for some time but central government has not yet responded. So we’re responding instead with a District Plan that removes barriers, and supports new thinking around housing. We were very pleased to see this staff recommendation come through; now let’s get cracking.”
WHI chief executive Aksel Bech supported today’s decision and applauded Waipā District Council for its leadership. WHI wants everyone in the region well-housed, living in sustainable, flourishing and connected communities, he said, but that was a “big ask” given housing costs.
"Waipā District Council also aims to connect communities. But the reality is that with a median house price in Waipā for the first quarter of this year sitting at close $827,000, prices are unaffordable for low to moderate income earners. Many families or couples are struggling to rent, let alone save for a deposit,” Bech said.
“Councils don’t have an endless range of tools to use but this is one powerful lever councils can pull and I applaud Waipā for taking this step.”
Staff will now work with stakeholders to draft a proposed plan change to Waipā’s District Plan, aiming to have it ready for consideration by elected councillors to publicly notify by early 2024. As required by the Resource Management Act, the proposed Plan Change will go through a formal notification process and public submissions will be invited.
Note to editors: More information on affordable housing in the wider region available here.
