Funding Growth in Hamilton Kirikiriroa

Alongside our 2024-34 Long-Term Plan process, we reviewed our Development Contributions (DC) Policy and Growth Funding Policy. We asked Hamiltonians, our development community and key stakeholders for feedback on seven proposed changes in the revised DC Policy:

1. Provide a remission of DCs of up to 100% for some development on Maaori customary and freehold land and for papakaainga on any land.
2. Extend the DC remission in the central city (formerly the CBD remission) for a further three years but reduce the remission from 50% to 33%.
3. Extend the current 100% high-rise remission of DCs for central city developments with six or more storeys for a three-year period.
4. Revise the non-residential capped charges to only include commercial and retail development in neighbourhood centres. Also, increase the level of the proposed capped charges from those in the current DC Policy by $20,000 to reflect the increased cost of funding growth.
5. Retain the existing social housing remission as a community housing remission and amend the eligibility criteria to include more targeted requirements and secure long-term benefits through binding agreement.
6. Charge residential development a uniform flat stormwater charge for all dwellings, regardless of bedroom numbers or size of dwelling.
7. Outline the factors Council considers when determining when to require a DC within the policy.

During our community consultation period (19 March to 21 April 2024), key stakeholders and the wider community had an opportunity to provide feedback on the proposed changes to the DC Policy as well as minor changes to the Growth Funding Policy. Council staff met with developer groups and key stakeholder during and leading up to public consultation.  A total of 73 submissions were received, with a combination of feedback received on the draft DC Policy and draft Growth Funding Policy. Overall, respondents supported:

i. extending the central city remission for a further three years to 30 June 2027 but were divided on whether to reduce the percentage remission from 50% to 33%

ii. extending the 100% high-rise remission in the central city for a further three years to 30 June 2027

iii. amending the non-residential capped charges provisions to narrow their scope to include only commercial and retail neighbourhood centres as zoned in the District Plan, with caps increased to $50,000 and $60,000 respectively (excl. GST) per 100m2 of gross floor area

iv. amending the social housing remission criteria to ensure developments receiving the remission will remain social housing in perpetuity

v. amending the calculation basis for stormwater development contribution charges for all residential dwellings to be 1 Household Unit Equivalent (HUE)

vi. updates to the bedroom definition.

Overall, respondents did not agree with:

i. introducing a 100% Te Ture Whenua Maori Act 1993 remission for Maaori customary and freehold land, and papakaainga on any land

ii. the updates in the DC Policy relating to the milestones at which DCs are required

iii. the draft DC charges and proposed increases

iv. the validity of the Schedule Of Assets (SOA).

Hearings to hear verbal submissions took place on 15 – 17 May, with 19 respondents from a range of organisations and two individuals requesting a speaking slot.

Following consultation, Council approved several changes to the draft DC Policy at a 4 July 2024 meeting. The changes include phasing in the new DC charges over three years and to further cap residential charges in the Peacocke and Rotokauri growth cells.

Other amendments to the draft DC Policy include:

i. extending the central city remission for a further three years to 30 June 2027 at 50%

ii. extending the 100% central city high-rise remission for a further three years to 30 June 2027

iii. amending the community housing remission to include registered charitable trusts that deliver social housing, and remove the requirement for “in perpetuity” and instead specify a 20-year timeframe

iv. proceeding with a 50% remission to residential and commercial development on Maaori customary and freehold land, and papakaainga on any land

v. amending the non-residential charge caps criteria to include neighbourhood centres within Peacocke, and reduce the cap levels by $10,000 per 100m2 of gross floor area

vi. amending the residential stormwater charges such that one-bedroom dwellings (only) pay 0.5 Household Unit Equivalents (HUEs). All other dwellings pay 1 HUE.

The updated DC Policy and Growth Funding Policy became operative on 5 July 2024.

Hamilton.govt.nz