Council approves bid for Government's Housing Infrastructure Fund

Council considered Tauranga City Council's final proposal for the Housing Infrastructure Fund today. Photo/John Borren

Council considered Tauranga City Council's final proposal for the Housing Infrastructure Fund today and approved it for release to the Government on March 31.

The Housing Infrastructure Fund (HIF) was a contestable $1 billion fund to assist high growth councils advance infrastructure projects required to increase housing supply.

It was proposed as an interest-free loan to help meet the requirements of the National Policy Statement on Urban Development Capacity for development-ready land.

Tauranga City Council was applying for a total of $256.1m to fund four packages of projects that will allow both city-wide growth and to open new urban growth areas:

•Waiari Water Treatment Plant ($114.6m) - city-wide
•Te Maunga Wastewater Treatment Plant upgrade ($55.9m) - city-wide
•Infrastructure for Te Tumu urban growth area ($39.8m) - Eastern Corridor
•Infrastructure for Tauriko West urban growth area ($45.8m) - Western Corridor

Council noted that submitting the HIF application is non-binding and that further assessment of risk, particularly in respect of strategic and financial impact, will be undertaken as part of the 2018-2028 Long Term Plan.

The main risk identified at this stage was that because the funding is provided as a loan, the debt associated would sit on Council's balance sheet, and would make Council exceed its debt limit.

Participating in the bid will enable Council to continue discussions with both Central Government and other high growth councils on possible alternative financial and funding structures.