The government is committing $100 million to support the development of new homes on the outskirts of cities, aiming to address the housing crisis.
Housing and Infrastructure Minister Chris Bishop says the changes are crucial in addressing the country's housing shortage. He believes medium-sized greenfield developments can significantly increase supply if supported with the right backing. However, he acknowledges that the current system often results in delayed or abandoned projects due to financial constraints.
The government is introducing a new model, dubbed the Greenfield Model, which will see NIFFCo lend money to developers at competitive interest rates during the development phase of a project. This debt will then be refinanced to private markets once the development is complete, with future homeowners paying back the loan through an annual levy.
This move aims to bridge the financing gap and ensure new homes are built in areas where they are needed most. The government also plans to remove LUC-3 protections from the National Policy Statement on Highly Productive Land this year, which could open up roughly the same size of land as the Waikato region for greenfield housing.
Minister Bishop stresses that finding a balance between protecting New Zealand's productive soils and addressing the housing crisis is key. As part of this effort, he proposes establishing "special agriculture zones" to protect LUC 1, 2 and 3 land when grouped together in natural configurations within key horticultural hubs.
The government expects these changes to boost housing supply and make it easier for new projects to come to market. The measures are seen as short-term interventions aimed at fixing the underlying issues driving New Zealand's housing crisis.