Central Hawke's Bay mayor: 'We are in crisis mode. We need houses now'

Central Hawke's Bay mayor Alex Walker: "These announcements will help – but the key is going to be in pace of delivery."

Hawke's Bay councils have welcomed a Government package that will allow them to install infrastructure for new housing using taxpayer funds, but say time is of the essence.

"We are in crisis mode," Central Hawke's Bay mayor Alex Walker said on Tuesday.

"We need houses now."

The housing package announced by Prime Minister Jacinda Ardern on Tuesday morning includes a $3.8 billion housing acceleration fund that will connect land with infrastructure.

Housing Minister Megan Woods said the fund will "jump-start" housing developments by funding services such as roads and pipes to homes, which are currently holding up development.

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Ardern said the number one issue that has been raised by developers and councils is the fact there is not enough housing infrastructure in place.

The fund will be a mix of contestable funding for infrastructure projects across the country.

The housing package detail document states "the Government expects local councils to play their part by opening up land and enabling intensification".

Hastings mayor Sandra Hazlehurst said the announcement will allow the council to deliver its Hastings Place Based Housing Plan's actions faster. Photo / File

Hastings mayor Sandra Hazlehurst said her council supports the announcement.

She said funding through the ratepayer system has previously been a challenge, which is why the council's Hastings Place Based Housing Plan "has been so successful", as it helped the council to gain Government funding to fast-track building more quality, affordable house.

"Given our partnership with Government and iwi through the Hastings Place Based Housing Plan, today's announcement will allow us to deliver the plan's actions faster."

When asked if there were any specific areas council would be putting forward for the fund, Hazlehurst said the council is waiting for specific details about the fund to be released.

Planning is under way for developments on other council land and Māori papakainga housing on Māori land.

As for intensification, Hazlehurst said the council has a medium-density plan.

"We know we can't expand on our fertile soils and we have to intensify our developments to deliver houses both today and in the future.

"We're also looking at inner-city development projects, working with developers to ensure our fertile soils are protected."

Napier mayor Kirsten Wise said she is looking forward to a closer working partnership with the Government and local agencies. Photo / File

Napier mayor Kirsten Wise said the council was currently working through the details of the announcement "to fully understand any opportunities for Napier".

She said there is a "real shortage" of housing and she looks forward to a "closer working partnership with the Government and other local agencies".

The housing acceleration fund is "great news", as investing in infrastructure such as pipes and roads so they can cope with housing intensification will support housing development and also potentially boost the city's "ability to cope with flood events, improve our sewage reticulation and have appropriate transport options".

The council is working with its partners in Government and the community to assist with public housing development through site identification and fast-tracking housing project consents, as well as spatial planning to identify the best places for higher-density development.

Central Hawke's Bay mayor Alex Walker said the key would be how quickly the Government could get the fund to work.

"We have far too many whānau in our Central Hawke's Bay community who do not have anywhere to call home. We are in crisis mode and these announcements will help with investment – but the key is going to be in the pace of delivery. We need houses now."

THE NUMBERS: HAWKE'S BAY'S HOUSING CRISIS

The announcement comes at a time when house prices and applicants on the housing register in Hawke's Bay are soaring.

The number of applicants on the housing register in Hawke's Bay has increased in three months from 1513 in September 2020 to 1600 in December 2020.

Napier now has the highest social housing waitlist per capita in the country.

The latest figures show there are 741 applicants in the city, a decrease of six on the September 2020 figures, but still the highest in the region.

In the Hastings District, the number on the housing register has increased by 69 people to 706, in the Wairoa District by 12 people to 85 and in Central Hawke's Bay by 12 people to 68.

The latest Real Estate Institute of New Zealand (REINZ) data as of February 2021 show that the median house price in Central Hawke's Bay was $438,000, Napier City $735,000, Wairoa District $310,000 and Hastings District had a record median price of $772,000.

The region as a whole reached a median price of $704,000 up 36.5 per cent on February 2020 at $516,000.