The Government has announced a Crown company to invest in housing infrastructure
The Government will co-invest up to $600 million, alongside local councils and private investors in network infrastructure, for new housing developments through a re-purposed ultra-fast broadband company, according to latest report from the New Zealand government.
Crown Infrastructure Partners, formerly Crown Fibre Holdings, will attract private investment for roading and water infrastructure to support the timely increase of housing supply.
"Crown Infrastructure Partners will set up special purpose companies to build and own new trunk infrastructure for housing developments in return for dedicated long term revenue streams from councils through targeted rates and volumetric charging for use of the infrastructure by new residents,” finance minister Steven Joyce said.
According to local government minister Anne Tolley, the new funding method will be made available to cash-strapped councils who are struggling to fund new long-term infrastructure from their balance sheets.
Meanwhile, Property Council New Zealand welcomed the move and said the investment will be a “ray of light for New Zealand’s housing market.”
“The Property Council has long called for adequate funding tools, and at last the Crown gives us a useful solution to address New Zealand’s housing crisis,” Property Council chief executive Connal Townsend said in a release.
Two of the earliest projects to be assessed by Crown will be the Auckland North and Auckland South projects.
“These two large projects can provide an additional 5,500 homes in Wainui to the north of Auckland, and 17,800 homes across Pukekohe, Paerata and Drury to the south of the city,” Tolley said.
Crown Infrastructure Partners, formerly Crown Fibre Holdings, will attract private investment for roading and water infrastructure to support the timely increase of housing supply.
"Crown Infrastructure Partners will set up special purpose companies to build and own new trunk infrastructure for housing developments in return for dedicated long term revenue streams from councils through targeted rates and volumetric charging for use of the infrastructure by new residents,” finance minister Steven Joyce said.
According to local government minister Anne Tolley, the new funding method will be made available to cash-strapped councils who are struggling to fund new long-term infrastructure from their balance sheets.
Meanwhile, Property Council New Zealand welcomed the move and said the investment will be a “ray of light for New Zealand’s housing market.”
“The Property Council has long called for adequate funding tools, and at last the Crown gives us a useful solution to address New Zealand’s housing crisis,” Property Council chief executive Connal Townsend said in a release.
Two of the earliest projects to be assessed by Crown will be the Auckland North and Auckland South projects.
“These two large projects can provide an additional 5,500 homes in Wainui to the north of Auckland, and 17,800 homes across Pukekohe, Paerata and Drury to the south of the city,” Tolley said.
