The call for ratepayers rather than developers to bear the cost of helping provide affordable housing has received no support from Queenstown Lakes District Council staff or consultants.
The council is proposing a variation to its district plan that would mean new developments paying 5% of sales, in either cash or land value, towards affordable housing.
Developers oppose the variation and during the past fortnight have told a hearing panel, chaired by Jan Caunter, there are better means of providing the funding, with a general or targeted rate one of their preferred options.
Lawyer for developer Winton Land Ltd Daniel Minhinnick told the hearing earlier this week the council had "dismissed out of hand" the rating option "as not being politically expedient".
Mayor Glyn Lewers declined to respond to Mr Minhinnick’s claim when approached by the Otago Daily Times on Wednesday.
Council principal planner Amy Bowbyes, in her rebuttal evidence, said councillors had supported pursuing inclusionary housing through the proposed variation to the district plan, as opposed to using rates, by ratifying the Homes Strategy 2021 and Joint Housing Action Plan 2023.
"In my view, the proposed approach responds to a specific resource management issue and a financial contribution is an appropriate mechanism to address the issue."
Ms Bowbyes pointed out the council used rates to fund a $50,000 grant to the Queenstown Lakes Community Trust — which provides families with more affordable homes — and rates also paid for infrastructure upgrades that supported urban growth.
The proposed variation was "part of a package" of work the council was undertaking to address housing affordability, she said.
"This strategic context is important, and in my view has not been fully considered in the submitter evidence."
Ms Bowbyes said there was no single solution to addressing the complex issue of housing affordability, and that many of the causes of the shortage of affordable housing were "beyond the immediate control of local government".
Consultant planner for the council David Mead said a targeted or general rate imposed an annual ongoing cost on households.
"This cost may be spread over a wider base than the charge on developments but will likely impact all low-income households in the district."
The hearing finished yesterday and the council will now write reply statements for the hearing panel.
It is likely to be a couple of months before the panel is ready to make its recommendation to the council.
