Hamilton City Council is being forced to reduce the supply of affordable homes to be built in Special Housing Areas (SHA), leaving private developers with more power and creating a tighter market for first-home buyers.
At an extraordinary meeting on Tuesday, councillors were told that four proposed SHAs, including more than 2000 homes in Rotokauri and Te Awa Lakes, were experiencing delays due to difficulty over private developer agreements, and the Ministry of Business, Innovation and Employment (MBIE) knocking back the city council's affordability criteria.
Councillor Mark Bunting, who, before KiwiBuild was started, had asked for affordable criteria to be added to SHAs, was concerned that leaving affordability in the hands of developers would mean they would go for the best possible yield that they could on a housing project.
"That is their job. It is like being mad at scorpions because they sting — that's what they do," Mr Bunting said.
In the special housing agenda at Tuesday's meeting, MBIE told the council it would be unable to include affordability conditions requiring homes to be sold to specific buyers — including neither the Government's own KiwiBuild scheme nor a trust that receives gifted land assets from developers — in the SHAs.