Plan Change 26 finalised for Waipā District Council
The Government has rejected requests from the Waipā District Council to amend two components of Plan Change 26, which will result in increased costs for building new dwellings in the recently-introduced Medium Density Zone.
The Council was obliged to change its District Plan when Central Government brought in new laws to increase housing density. These changes, known as Plan Change 26 and introduced in August this year, allow for two houses up to three storeys high per site to be built in Cambridge, Te Awamutu and Kihikihi, without a resource consent or notifying neighbours.
After a lengthy hearing process held throughout 2023, with the majority of submissions expressing concern about the changes, Council accepted all but four of the Independent Hearing Panel’s recommendations for the plan change.
These rejected recommendations were sent on to the Minister responsible for Resource Management Reform, Chris Bishop, to make a final decision.
Two of the rejections – a technical wording change regarding stormwater overlays, and the ability to allow up to three dwellings per site in the Medium Density Zone directly surrounding Cambridge town centre – have now been agreed to by the Minister. As a result, there will be no areas of Waipā that permit as of right up to three dwellings or more per site.
However, the Minister has not accepted Council’s rejection of provisions relating to relocated buildings and financial contributions.
It’s the latter that will add costs for people building in the new Medium Density Zone – a mandatory new charge of $3725 for each new dwelling.
Council had rejected this, recognising the impact it would have on housing affordability.
Group Manager District Growth Wayne Allan said the Council did not want the plan change in the first place and certainly did not want to load extra costs on to new homeowners.
“We’re aware that the economic climate has changed considerably since this plan change was notified in August 2022, which is why we no longer wanted to require new financial contributions.
“Unfortunately, this decision is out of our hands. We know the impact it will have, and we tried very hard not to have to impose these extra fees.”
The financial contributions are levied for the specific purpose of mitigating the effects of increased housing density on both residential amenity - how pleasant a neighbourhood is for people - and the Waikato River. The money must be spent on projects such as street planting and improving stormwater catchment or park and reserves. It cannot be spent on projects funded by Development Contributions, such as growth-related playgrounds or stormwater assets.
The levy will be imposed against every new house, and payment will be required at building consent stage if no land use resource consent is needed.
The second recommendation, rejected by the Council but confirmed by the Minister, regards relocated buildings. The hearing panel had recommended relocated houses be a ‘permitted activity’ in the plan change, subject to compliance with density standards and the Building Act, but with no controls regarding their exterior maintenance.
Council’s original, publicly notified proposal for Plan Change 26 included specific standards and restrictions for relocated buildings in the new Medium Density Zone – the same provisions that apply across the wider district in the Operative District Plan.
"The Building Act’s requirements are limited to foundations and plumbing matters – they cannot be relied on to ensure relocated houses aren’t left indefinitely in a state of disrepair or to keep our neighbourhoods looking up to standard,” said Allan.
The rejected components of Plan Change 26 including the new financial contribution provisions will become operative when the recommendations are formally notified, which is anticipated to be no earlier than February or March next year. There is no specific timeframe, and the council is working to ensure the administrative process and the full implications are as clear as possible before the changes are notified.
