Under the Auckland Housing Accord approved in September 2013, 10 per cent of new residences in special housing areas (SHAs) had to be affordable, bought by a first-home buyer on a modest income.
Labour's housing spokesman Phil Twyford said the housing scheme had failed.
"The SHAs were National's main policy to increase housing supply. They've been a total flop," Twyford said.
"In three years, only 2500 homes have been completed in the SHAs, when [then-Housing Minister Nick Smith] promised 39,000. At the same time the shortfall of homes in Auckland is now 35,000, according to Auckland Council's chief economist who estimates it will blow out to 50,000 by 2023. The city needs 14,000 homes every year just to stand still, but data from Statistics NZ out yesterday shows only 8700 were built in the last year."
Smith, now Building and Construction Minister, said in the House this week: "There are 4800 homes that have been consented in special housing areas in Auckland, and 2500 of those have been completed. Right now, a third of the new homes being built in Auckland are in special housing areas. That is, if we did not have special housing areas, there would be 3000 fewer homes per year being built in Auckland."
Chris Aiken, chief executive of the business overseeing Hobsonville Pt's development, said SHAs had most certainly worked in his area "because we were determined to build houses affordably. For developers determined to get building, SHAs have turbo-charged their projects".
Darby said SHA landowners got privileges. "Those who applied for and were confirmed as SHAs enjoyed fast-tracking with non-notification and priority treatment by the Housing Project Office," Darby said.
But when Auckland's planning regime changed last year, the 10 per cent affordable demand vanished, he said.
"When the Unitary Plan came in, there was no longer any need to build affordable houses," Darby said, adding that he had requested more SHA information which he expects early next month.
Asked to name some of the 86 disestablished areas, Darby said: "I have a list but it's confidential because it's got company names on it."
Developers Willis Bond are building on Housing NZ Corporation land at Takapuna on the corner of Lake Pupuke Rd and Killarney St.
Roger Twose of Willis Bond said that site had been designated an SHA, which sped up planning consent.
"I'm not sure whether technically it is still classified as a SHA but it was certainly consented on that basis. The resource consent process was more efficient and quicker by at least six months," Twose said.
"Construction commenced over a year ago and the site will deliver 70 apartments into Auckland's housing supply. Previously there were a dozen dilapidated units. On that basis I think one could consider it a successful example of the SHA initiative."
Steve Evans of Fletcher Residential said all his company's SHAs were still in force and he indicated concern about the loss of others.
Evans said: "Some people used the housing accord legislation to get SHA status. Then the Unitary Plan came in and they worked out that this was more permissive that their SHA status because it had no affordable requirement, and hence walked away from the SHA. We were not one of them."
