Government announces $1.4 billion housing and infrastructure spend in Auckland

The Government announced a $1.4 billion housing and infrastructure package for Auckland today. Video / NZ Herald

The Government announced a $1.4 billion housing and infrastructure package for Auckland today.

Housing Minister Megan Woods said about 400 urban renewal projects in Mt Roskill, Mangere, Tāmaki, Oranga and Northcote will receive funding from the Government's $3.8 billion Housing Acceleration Fund (HAF) to unlock more housing.

"The Large Scale Projects (LSPs) under way in these suburbs are a first of their kind in New Zealand, replacing aged public housing that has reached the end of its life, and creating opportunities for new public, market and affordable housing to be built.

"This $1.4 billion of HAF funding will develop build-ready land to enable up to 16,000 homes in the suburbs over the next five to 16 years," Woods said.

Auckland Mayor Phil Goff, Megan Woods and Michael Wood. Photo / Michael Craig

Specific work programmes enabled by the funding are:

• The Mt Roskill site preparation work includes land decontamination and an upgrade of water infrastructure and addressing flooding issues on 62.8 hectares to enable approximately 5400 homes.

• The Tāmaki site includes decontamination work, transport, and water and stormwater upgrades across 90ha ready for around 4400 homes.

• Mangere work includes decontamination works and water and stormwater upgrades across 68ha for around 3800 homes.

• Northcote upgrades across 8.2ha will create build-ready land for around 1200 homes.

• Oranga infrastructure work across 15.6ha includes transport upgrades, including walking and cycling to create build-ready land for around 1000 homes.

"For too many decades there has been too little investment in infrastructure like pipes and roads that allow new housing to be built. Getting land build-ready by funding infrastructure is a key way to fix the housing crisis we inherited after decades of inaction," Woods said.

She said the funding will see the replacement of about 4000 Kāinga Ora homes past their use-by date, 2000 additional Kāinga Ora homes, as well as 10,000 additional affordable and market homes to be built and available for purchase.

"It's also estimated the infrastructure work will unlock potential for a further 11,000 new homes on surrounding privately owned land in these suburbs," she said.

Auckland Mayor Phil Goff. Photo / Herald

Auckland Mayor Phil Goff said the money is critical to the investment in Auckland Housing Programme's regeneration of older housing areas in Mt Roskill, Māngere, Tāmaki, Oranga and Northcote.

It will also take a load off the council, which is facing huge financial challenges from the impact of Covid-19, rising inflation and interest rates, increased building costs and supply chain issues.

Auckland Transport is also running out of money to fund public transport at current levels and Goff has said the council is facing hard times.

Goff said the government money alongside some hundreds of millions of dollars the council will invest specifically in the Auckland Housing Programme will enable the creation of a further 16,000 houses, with 6000 of those being much needed social housing.

He said the old state houses on large sections did their job well but they are now at the end of their lives.

"Aucklanders' and the city's needs have changed, and we are catering for that through enabling more apartments and terraced housing in compact, liveable communities," Goff said.

Act said today's announcement is a temporary fix that doesn't address the enduring problem that is preventing houses from being built.

Housing spokeswoman Brooke van Velden said builders and councils say the real shortage is infrastructure, and councils can't afford it.

"Today's announcement is proof of this. These suburbs all had housing developments that had been under way for years, but the Government didn't account for the necessary infrastructure these homes needed and are making up for it now. What happens when the funding that was dished out today runs out?"

She said instead of forcing councils to come begging for funds from the Government, Act has proposed local councils receive a payment equivalent to 50 per cent of the GST for every new dwelling constructed in its territory.