What are Development Contributions?

    New developments place increased demand on Councils infrastructure. To ensure that existing ratepayers do not carry the burden of increased demand, Development Contributions are charged. Development Contributions are payments made to the Council by people who develop new dwellings within Porirua.

    Development Contributions may be charged on any development, change in land use, or service connection that creates any additional demand on the City’s network infrastructure, reserves or community assets.

    Development contributions are a funding tool used by the Council to help fund growth-related infrastructure projects and are essential in facilitating new development.

    What do they fund?

    Development contributions are used by the Council to assist with funding the following projects:

    • Network infrastructure such as new or expanded water supply, wastewater, stormwater and roading networks;
    • Community infrastructure such as new reserves, halls and sports fields.

    To find a full list of these projects please refer to the proposed 2024 Development Contribution Policy.

    When are Development Contributions paid?

    You will usually have to pay development contributions for residential developments such as new houses and apartments, non-residential developments, subdivisions, and for some changes of land use.

    Assessments for Development Contribution are made when a resource consent, building consent or service connection is granted. Payment must be made before:

    Type

    Timing

    Subdivision consent:

    100% of the Development Contributions will be payable prior to the issue of Section 224(c) certificate. The invoice is sent to the applicant when 224 certification is received by Council.

    Land use consent and Building consent:

    Prior to the issuing of a Building Act Code of Compliance Certificate for the related building works or connection to the Council service, whichever comes first. The invoice is sent once the application for CCC is received or we are advised of the connection to service.

    Service connection:

    Prior to connection.

     

    Development contribution fees may be recalculated if changes are made to the development or consent.

    What changes are proposed in the Development Contributions Policy 2024?

    What changes are proposed in the Development Contributions Policy 2024?

    A summary of changes being consulted on Development Contributions Policy 2024 doesn’t propose any changes to the operational processes and administration of Development Contributions however, there are the following proposed changes to the scope of Development Contributions.

    Proposed change

    Rationale

    Impact

    Introduction of brownfield reserve catchments

    Brownfield reserves contributions are introduced for existing (non-greenfield) catchments.

    • Porirua City Council through the District Plan have enabled our community to develop greater density residential properties and promote the supply of housing.
    • With this increased density and intensification increases the demand on Council’s existing parks and reserves network will increase. To ensure desired levels of service are achieved growth will need to fund its share of the upgrades to the existing network.
    • The proposed inclusion of brownfield reserve catchments allows Council to collect Development Contributions for reserves from Developments in Brownfield areas. 
    • Contributions collected by this charge will be put towards ensuring our parks and reserves network can cater for denser developments in brownfield areas.
    • This will help ensure a consistent level of service outcome for reserves across Porirua City.  
    • The catchment-specific groupings (greenfield, brownfield) draw a link between different types of development and underlying drivers of Council‘s assets.

     

    Incorporate Kaumātua housing in response to the Te Ture Whenua Māori Act 1993

    Incorporate Kaumātua housing and align with current Retirement Village settings and factors.

     

    • Under the existing development contribution policy provisions, retirement village units are deemed to place a lesser demand (50%) on Councils infrastructure so are only liable for half of the standard household unit charge.
    • Kaumātua Housing is expected to be comparable to with retirement village developments in terms of demand on infrastructure.
    • Introducing Kaumātua Housing at the same rate as Retirement Village development will allow for parity in charges between Kaumātua Housing on Māori land and retirement village development.
    • S102 of the LGA2002 allows support for the principles set out in the Preamble to Te Ture Whenua Māori Act 1993.
    • The proposed changes are a part of Councils support towards these principles. 

     

     

    • Kaumātua housing developments on Māori land, as defined by the Te Ture Whenua Act 1993, will be charged 50% of the standard Development Contributions charge.
    • This change will align Kaumātua housing developments on Māori land with retirement village developments.
    • This charge will ensure all new developments fund a fair share of the cost of providing growth capacity in new community facilities.

     

    Does this mean I will pay more in Development Contributions as a result of these changes?

    The Development Contributions Policy 2024 reflects the most up to date growth projections and infrastructure asset management plans from the Long-term Plan 2024. This includes the approximate costs relating to growth. There has been an average increase across the city of 16% to Development Contributions.

    Those in new greenfield development sites will see higher increases compared to brownfield infill developments.

    What changes will applicants experience as a result of the Development Contributions Policy 2024?

    The Development Contributions Policy 2024 doesn’t propose any changes to the operational process or administration of Development Contributions.

    When will the fees in the new policy be charged?

    The 2021 Development Contributions Policy will continue to be enforced until a new policy has been adopted by the Council. Council is aiming to adopt the Development Contributions Policy 2024 on 29 August 2024.

    The Development Contributions Policy 2024 will apply to all consents lodged and accepted by Council on or after the 1st of September 2024.

    Why is council consulting on a new Development Contributions Policy?

    The Local Government Act 2002 section 102(2)(d) requires all local authorities to have a policy on development contributions or financial contributions.

    The Development Contributions Policy is one of the tools in the comprehensive funding systems available to Council. Council reviews its policy to ensure it reflects the projected growth and costs related to servicing such growth. It also provides an opportunity to incorporate learnings since the previous policy adoption, changes to legislation and alignment with best practice.

    Before any new or amended policy is adopted by Council it must provide the public and any person or organisation with the opportunity to share their views on the proposed policy.

    Where can I find more information on the Development Contributions Policy?

    You can go to our website https://poriruacity.govt.nz/your-council/policies-and-bylaws/policies/development-and-financial-contributions/

    If you have any questions or would like a little more information, you can contact submissions@poriruacity.govt.nz or call on 04 237 5089. 

    If you want to be kept informed about changes to the Development Contributions Policy in the future then please email dcassessments@poriruacity.govt.nz to be added to the policy distribution list.

    How is a development contribution determined?

    Residential

    Subdivision: Development Contribution - All Sites 1.0 HEU per additional allotment created, whether occupied or unoccupied by any structure or building including any existing residential household unit/s. 

    Land use; Building Consents; and Service Connections:  Development Contribution - All vacant sites: 

    1. No development contribution is required for the first residential household unit created on any vacant site (without any subdivision created);
    2. 1.0 HEU for the 2nd and each subsequent residential household unit created on a site.

    Development Contribution - Sites occupied by an existing established household unit:

    1. No development contribution is required for the first residential household unit created on a site occupied by an existing established residential household unit (without any subdivision created);
    2. 1.0 HEU for any 2nd and each subsequent residential household unit created on a site.

    Non-residential

    New Buildings: A development contribution is chargeable for all new non-residential buildings on any site. A development contribution charge is separately calculated for each of the following activities: 

    • Water supply
    • Wastewater
    • Wastewater treatment plant
    • Stormwater 
    • Roading 

    The development contribution charge for water supply, wastewater, wastewater treatment plant and roading, is calculated using the gross floor area. The development contribution charge for stormwater is calculated using the impervious surface area.

    Building additions: No development contribution is chargeable if a non-residential building is being converted to another non-residential use and: 

    • no additional gross floor area and/or impermeable surface area is being developed, and 
    • no change is required to any service connection to the property. 

    A development contribution may be chargeable for converting all or part of a non-residential building to a residential use. Where this occurs the development contribution charge will be determined in accordance with Council’s Development Contribution Policy taking into account any historical development contribution credit value applying to the site. 

    Special assessment, reconsideration requests and objections

    Special Assessment

    If an applicant believes that their development includes a design feature/s that will generate a different demand for infrastructure services, an applicant can request that the Council undertake a special assessment of the development contribution that would apply. 

    The Council may also require a developer to provide a special assessment if it considers that a development’s infrastructure demand will be outside the scope of the Policy. 

    Reconsideration

    An applicant can request a reconsideration of a development contribution assessment provided by the Council, where the applicant considers the Council’s assessment was incorrect or based on incorrect information. 

    This request must be made within 10 working days of receiving the Council’s notice of its development contributions assessment. 

    Objection

    An applicant can also challenge any development contributions assessment or reconsideration provided by the Council through a formal objection process. Objections will be considered by an independent commissioner. 

    An objection request must be made within 15 working days of receiving the Council’s notice of its development contributions assessment. Council will require a deposit to be lodged by an applicant for processing an objection request. 

    The deposit will be used to cover the costs of: 

    • Selecting, engaging, and employing commissioners;
    • Secretarial and administrative support of the objection process;
    • Preparing for (including evidence preparation), organising and holding the hearing; and
    • Preparing and releasing the decision on the objection. 

    The decision of an independent commissioner is binding on all parties, including the Council, and can only be overturned by judicial review. Where an objection is successful the deposit will be refunded in full. 

    The full details of the criteria and process for considering an objection are available in our Development Contributions Policy at poriruacity.govt.nz/your-council/getting-involved/public-consultation/development-contributions-policy-2021/