Government announces plan for 60 new Auckland apartments

60 new apartments will built on land from the leftovers of the Te Atatu interchange roading project. Photo / File

The Government has scooped up leftover land from an Auckland roading project where it intends to build 60 new apartments.

Building and Housing Minister Dr Nick Smith says the 0.53 hectare site in Titoki St, on the Te Atatu Peninsula, was originally acquired by the New Zealand Transport Authority for the upgrade of the neighbourhood Te Atatu Interchange on the north-western motorway.

However, the project is now completed and the Ministry of Business, Innovation and Employment [MBIE] has signed an agreement to buy the leftover portion of land back.

The site is 12.5km from the Auckland CBD and 1.5km from the Te Atatu Peninsula Town Centre, as well as easy walking distance of a bus stop, schooling and parks.

"It is an ideal development site for new housing," Dr Smith says.

The plan is for 20 per cent of the dwellings to be sold below the HomeStart cap of $650,000 and 20 per cent to be made available for social housing.

"The advantage of the Crown Land Programme over just selling the land on the open market is that we can require the property to be used for growing housing supply, ensure the development occurs at pace and put requirements on the development to include social and affordable housing."

The opportunity to develop the land will first be offered to Ngā Mana Whenua through its Limited Partnership, in line with the Development Protocol under the Deed of Settlement with Ngā Mana Whenua o Tāmaki Makaurau, Dr Smith says.

"If an acceptable proposal is not made by the Limited Partnership, the development opportunity will then be offered to the top-ranked developer on MBIE's private sector developer panel."

Dr Smith said community housing providers [CHPs] are also encouraged to be part of the development. The Ministry of Social Development will connect interested CHPs from its panel of preferred providers with the developer once confirmed.

The Government is providing $144.5 million to help CHPs fund these types of developments.

CHPs can apply for up-front funding of up to 50 per cent of the value of the development, or a weekly grant of up to 50 per cent of market rent on top of the current rental subsidies the Government provides once the properties are built, or a combination of both up to the equivalent level of funding provided by either the upfront funding or weekly subsidy alone.

Housing developments on unused or under-utilised Crown land are part of a wider series of Government initiatives to assist the market to address Auckland's housing supply issues.

"Step by step, development by development, we are resolving Auckland's housing challenges as evidenced by the record level of residential construction work and the number of new houses in the pipeline for the city."