Housing Infrastructure Fund Helps 10,000 More Homes in Auckland. Or Does It?



From the Office of the Mayor Phil Goff


Auckland Mayor Phil Goff and Finance Minister Steven Joyce today announced $300 million of new infrastructure investment to bring forward the construction of 10,500 new homes in Whenuapai and Redhills, Auckland.

The $300 million new funding provided through the Housing Infrastructure Fund will unlock new housing development in Auckland’s north-west via investment in transport, wastewater and stormwater projects earmarked by Auckland Council as priority, fast-track initiatives.

Mayor Phil Goff says, “The HIF provides the opportunity for Auckland Council and Government to work together to start addressing Auckland’s serious housing issues for the benefit of our city and the New Zealand economy.”

“This funding will fast-track priority new infrastructure projects, turning zoned land into 10,500 new homes, and creating new Auckland communities.

“Over the last several months, I’ve met with the Prime Minister and other Ministers to discuss the HIF. I am pleased that Auckland Council has been able to work with Government to ensure the Government’s wider finding package for infrastructure aligns with Auckland Council’s financial constraints.”

Mayor Goff says Auckland’s HIF bid focused on a small number of highly development ready areas where funding would accelerate priority projects and unlock housing growth quickly.


In addition to wastewater and stormwater improvements, the $300 million will fund improvements to transport infrastructure including an extension to Fred Taylor Drive and Northside Drive, an update and realignment of Trig Road and a new bridge crossing to West harbour ferry terminal.

“Not only are we accelerating housing delivery, we are creating new centres for employment and increased accessibility across the Auckland region with improvements to Auckland’s transport system.

“Accelerating housing delivery in Auckland is a priority. I welcome the Government’s recognition of the growth challenges facing Auckland and their readiness to work with Council to address issues in our city for the benefit of all New Zealand.

Mayor Phil Goff says that while $300 million in new infrastructure investment will help Auckland address housing shortages in the city, it will continue to need billions of dollars of extra investment to keep pace with the city’s unprecedented growth.

“Auckland has received most of what it sought from the HIF. In the coming weeks there will be a further important announcement from Government on new funding options for Auckland that take into account the balance sheet constraints the city faces. We have worked constructively with Government to find innovative solutions to meet Auckland’s needs.

“The HIF package will help significantly, but with ongoing growth and the pressing need for matching infrastructure, we will need to continue to work together to increase and bring forward investment to tackle Auckland’s housing shortage and growing congestion,” says Mayor Goff.



The Map:

Housing Infrastructure Fund_North West_MAP


I’ll start with this Tweet:


The area was no where near ready to go and should have been put back to the second or third decade of the Future Urban Land Supply Strategy (see: Future Urban Land Supply Strategy Refresh Agreed. I Disagreed). Given the Housing Infrastructure Fund is a loan to Council and sits on the Long Term Plan balance sheets it is in effect Auckland cross subsiding a non-ready development that should have not be granted Special Housing Area status on the back of no infrastructure nor any employment complexes being ready nearby.


As I explained in #Budget2017 Lacks Vision for Auckland. So I Crunch Some Numbers and elsewhere the South and its SHA’s were in the best position to take the first decade of growth. We have capacity on the Southern rail Line (least we have transit as the North West certainly does not) and the water networks. Furthermore several major employment complexes whether commercial like Manukau or industrial like Drury South or Wiri are close by meaning commute times are cut down.


From that post:

Growth and Housing Projections under the Auckland and Unitary Plans

  • 780 new residents a week X 52 weeks = ~40,560 new residents a year to Auckland
  • Unitary Plan has capacity for 422,000 dwellings over 30 years or 14,066 dwelling to be built a year if on a linear path

Housing Needs to nominal population growth mentioned above 
40,560 new residents a year
Working on assumption of average three people to a dwelling
40,560 / 3 = 13,520 homes a year (so just under Unitary Plan annual theoretical capacity)
The above does not factor in the 40,000 dwelling deficit already in place in Auckland. So to get them up first requires a 2.85 year dwelling build at the 14,066/year build I have set using the Unitary Plan numbers

Southern Auckland Future Urban Zone and Transform Manukau Yields
Transform Manukau has forecast an extra 20,000 new residents meaning 6,667 new dwellings required
Southern Future Urban Zone has capacity for ~55,000 new residents and 35,000 new jobs (this does not include expansion of the Wiri or Airport industrial complexes)
55,000 new residents = 18,333 new homes
Not including other developments in Brownfield areas in Southern Auckland that means 75,000 new residents and 25,000 new homes at minimum

40,000 new homes needed to get on top of current deficit
25,000 new homes for new residents above and beyond the deficit
65,000 new homes taking around five years if building to full Unitary Plan capacity yields

quote context: http://pllqt.it/n2Ca5Z


Cost is $4.25b over seven years to bring it online not $300m as the Government loaned over ten years.


A disappointment today and given the location of where the HIF was applied it could end up worse than nothing from the Government right now when you factor amenity and transport costs.


Southern Motorway 1963
Source: http://www.noted.co.nz/life/urbanism/an-urbanist-looks-at-what-went-wrong-in-auckland-and-how-we-might-fix-it/#


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