The Government is spending $282 million on infrastructure in Auckland to enable extra state, market and affordable homes to be built in five suburbs.
The first big chunk of money from the Housing Acceleration Fund in Auckland will allow up to 1260 homes on top of 2500 homes already funded in Mt Roskill, Mangere, Tāmaki, Oranga and Northcote, says Housing Minister Megan Woods.
New and upgraded infrastructure is needed for brownfield developments that will see 600 Kāinga Ora properties demolished and replaced with 700 new state houses, 580 affordable homes and 580 market homes.
"It's another massive investment in Tāmaki Makaurau which needs more investment in underlying housing infrastructure like pipes and roads," she said.
The money will help fix decades of underinvestment in infrastructure, including improved sewerage and flood protection, Woods said.
The five suburbs - part of the Government's large-scale projects (LSP) housing programme - will see improvements to wastewater, stormwater and clean water capacity in Mt Roskill, Māngere and Northcote. There will be improved water discharges to the Tāmaki Estuary, reducing flooding risk; and improved road safety and walking and cycling safety across Tāmaki and Oranga.
"Replacing ageing pipes and improving roading is essential to futureproof and grow these communities, Woods said.
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The funding will also help clean up many neighbourhoods, with the removal of contaminants such as asbestos, arsenic and lead as old homes are demolished.
Under an agreement with Auckland Council, the Government is putting in more money early on and the council will contribute $13m later on. The total project cost is $295m.
"Auckland has an estimated housing shortage of more than 25,000 homes.
"This is a key part of the Government's plan to address the housing crisis by increasing supply through our strategically located LSPs in areas where people want to live.
"These LSPs provide quality housing where it is needed most and the investment in infrastructure unlocks the potential for future market-led development," said Woods.
Auckland Mayor Phil Goff said the Government funding was much needed and much welcomed to helping the needs of a fast-growing city until Covid-19 closed the borders.
He said the council could not afford the full $295m bill itself because the demand for infrastructure is higher than it has ever been on top of having to invest in major projects like meeting half the cost of the $4.4b City Rail Link and a massive $11b investment in water infrastructure over the next decade.