Auckland Council today moved a step closer to unlocking up to $300 million in funding for housing infrastructure in the northwest, with the potential creation of about 6200 new homes through the government’s Housing Infrastructure Fund.
It comes after the council’s Governing Body agreed to submit a detailed business case to apply for the $300 million set aside by the government for Auckland from the fund.
About $130 million would take the form of an interest-free loan, saving the council an estimated $50 million to $60 million in interest over 10 years.
It will be repaid through a combination of development contributions, infrastructure growth charges and developer agreements.
Deputy Mayor Bill Cashmore welcomed the decision.
"This is a one-off opportunity that has the double benefit of saving a significant amount of money in interest payments, but also being able to deliver much-needed housing in the northwest of Auckland, complementing the significant investment the council has already made in the area," he says.
"But we aren’t there yet. In order to access the funding the government, quite rightly, require a detailed business case to show that we can deliver the infrastructure required to enable housing in the area. That is the next step in the process and what we as a council have agreed to today.
"This decision should reassure developers in the area that we are serious about enabling development in Auckland, and are doing all we can to work collaboratively across the council family and with the private sector to ensure the best possible outcomes for Auckland’s housing.”