The government is setting up a new agency to speed up the building of housing, starting with a fund of $600 million.
Papakura MP Judith Collins, Local Government Minister Anne Tolley, Auckland Mayor Phil Goff, Prime Minister Bill English, Finance Minister Steven Joyce, and Auckland Deputy Mayor Bill Cashmore. Photo: RNZ / Todd Niall
Crown Infrastructure Partners (CIP) will be given $300m in each of the next two years, to co-fund basic infrastructure especially, but not only, in Auckland.
The government's named the first two projects to be considered for funding, one in Drury in Auckland's rural south, and the other at Wainui in the city's northern rural area.
The Drury development by Stevenson Limited could be eligible for up to $68m for roading, water and transport spending to accelerate the start of 700 homes by up to two years.
Up to $149m could be available for new roading around the Wainui area near Silverdale.
The fund is the second housing initiative in a fortnight by the government, which unveiled its $1 billion Housing Infrastructure Funds chosen projects 12 days ago.
While CIP is smaller, Finance Minister Steven Joyce said it may grow in coming years, if the concept of co-funding infrastructure alongside local bodies and the private sector proves effective.
CIP will provide funds to so-called Special Purpose Vehicles, (SPVs), companies dedicated to building the infrastructure for specific projects.
It's a concept that keeps the increased borrowings for infrastructure, off the books of local bodies such as the Auckland Council, which is nearing the end of its ability to comfortably take on more debt.
"SPVs are another tool in our toolbox to enable us to lift the scale and pace of new housing development," Auckland Mayor Phil Goff said.
Mr Joyce said other investors may also look at lending for housing infrastructure.
"Iwi are keen, ACC - I had a bit of an informal chat with them the other day - they are keen on the concept as well, I suspect you'd find the Super Fund is keen, I'd say the internationals would have to line up behind the locals," he said.