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A government paper has proposed using compulsory acquisition of private land if it is needed for large-scale redevelopment in cities struggling with a housing shortage.
The discussion paper on housing developments has proposed compulsory acquisition as a "last resort" option if a reluctant landowner is refusing to sell land which was critical for a development to go ahead.
The discussion document was put out for public submission by the Sustainable Urban Development Unit.
The unit is led by the Department of Internal Affairs with input from 10 government departments, including the Department of Prime Minister and Cabinet, Environment, Social Development and Treasury, as well as Housing NZ.
It said large-scale redevelopment was becoming increasingly necessary to address the growing population.
But because of the scale required, it often needed a number of adjoining land-owners to sell their land or allow it to be used.
The document - "Building Sustainable Urban Communities" - said where there was an "overriding public interest" in the development going ahead, individual landowners could be forced to sell rather than kill off the development.
The paper said landowners may be reluctant to sell their land because of "a personal attachment to their house, land or area", an inability to relocate, or a desire to do their own smaller-scale development.
Reluctant landowners might also want to land-bank, or were uncontactable, or "simply uninterested".
In New Zealand the power can already be used - but only for "public works", such as schools, power lines and prisons, or by local councils for "urban renewal".
However, it is rare and controversial because it involves taking private property rights away.
The discussion paper said some other countries - including Australia and the UK - already used the controversial power for urban redevelopment.
If such a power was to be extended to redevelopment in New Zealand, "it should be exercised only in special circumstances - that is, to buy strategically important sites or where sites are critical to realising the overall development vision".
The power could either be given to local authorities or a separate law could be passed allowing the power to be used in "urban development" areas and subject to specific criteria or ministerial approval.
Another alternative was "land readjustment" in which the landowner is given land or housing of equal value once the new development is complete.
The discussion document has a joint foreword from Environment Minister Trevor Mallard, Housing Minister Maryan Street, Local Government Minister Nanaia Mahuta and Building Minister Shane Jones.
It said the document proposed a "possible new approach" to urban development, which would strengthen the ability of local councils and Crown entities to ensure appropriate development in their areas.
The discussion document also seeks public feedback on a model used in Australia and the UK for special "urban development organisations" to run new developments, possibly as joint projects between the Government and private sector.
There is also discussion on streamlining the process for new developments, and giving local authorities and crown entities more scope to become involved. The discussion paper follows lengthy consideration by the Government of remedies to the housing affordability issue.
