Affordable housing bill passes under urgency

A bill giving new powers to councils to get cheaper homes built passed into law today.

Sitting under urgency, MPs passed the Affordable Housing: Enabling Territorial Authorities Bill by 66 votes to 52.

Under the law councils that establish they have a shortage of affordable housing will be able require developers to build some cheaper homes or to contribute money or land towards affordable housing being built elsewhere.

Councils will also be able to offset development costs as an incentive to home builders.

Housing Minister Maryan Street said most new homes being built were large and too expensive for first-time buyers or modest income families.

Local councils and Local Government New Zealand raised concerns about the bill saying it was complex and set rigid processes.

Ms Street said the amendments made by the select committee made the law more flexible.

- NZPA