Artist impression of light rail outside Wellington Railway Station. Image / LGWM
Artist impression of light rail outside Wellington Railway Station. Image / LGWM
Kāinga Ora is eyeing new legislation, which hasn't been used before, to fast-track housing development around Wellington's proposed light rail line.
It comes as Housing Minister Megan Woods has been warned not to grant any future Budget bids to the state housing agency for a time, after fears of unsustainable debt levels.
The Government's preferred option for the Let's Get Wellington Moving (LGWM) transport plan includes light rail to the south and a second Mt Victoria tunnel- freeing up the existing tunnel for walking and cycling.
The $7.4 billion plan would enable up to 21,000 homes to be developed primarily around the mass rapid transit route.
A ministerial briefing released under the Official Information Act shows LGWM partners and Kāinga Ora are keen to use new powers to help develop those homes.
The change envisaged by LGWM was of such "significance and complexity" that it warranted a different approach to the traditional consenting process, the Waka Kotahi briefing said.
Kāinga Ora has expressed an interest in putting together a proposal for something called a Specified Development Project.
To date, the agency is yet to establish one of these projects, although Kāinga Ora is in conversations with many developers and councils.
Kāinga Ora urban planning and design general manager Katja Lietz said it allowed them to overcome key barriers to development.
"These powers include (but are not limited to) the ability to change regional and local planning instruments and utilise funding tools to deliver infrastructure."
One of the most important benefits of this type of project was bringing multiple parties together to create a development plan, including iwi, Lietz said.
Housing Minister Megan Woods. Photo / Sylvie Whinray
Kāinga Ora could both develop the proposal and then select the project for assessment as a potential Specified Development Project.
The Ministry of Housing and Urban Development was comfortable these roles were distinct from one another.
The section of Kāinga Ora responsible for selection recommendations and assessments will not have any involvement in developing the proposal, the briefing said.
Earlier this week, a leaked document from the Ministry for Housing and Urban Development showed spiralling construction costs have led to a debt blowout at Kāinga Ora, with fears the Government will be unable to completely repay the increase in debt over the next 60 years.
The document, dated June 17, says Kāinga Ora is "investigating" cost-cutting measures such as pausing a programme to improve heating in homes or retrofitting old homes with improvements that make them accessible to people with disabilities.
Officials said the ideas might result in some "cost savings" but they will not address the root cause of the blowouts.
Woods' office said that "no decisions were made on the recommendations and Minister Woods sought more advice on the matters raised".
Asked whether Kāinga Ora should be considering a fast-tracked proposal for LGWM considering its current financial position, Lietz said they carefully considered the projects selected for assessment as a potential SDP.
"The assessment process itself is designed to explore all funding constraints," Lietz added.
