Govt confirms $52m loan for Queenstown housing

Major infrastructure loans to enable housing developments in Queenstown have today been confirmed by central government.

Minister of Housing and Urban Development Phil Twyford confirmed $52 million of 10-year interest-free loans to Queenstown Lakes District Council.

Dr Nick Smith, who was Building and Construction Minister under the last government, announced in July last year that Queenstown was successful in its bid for loans from the Government's $1 billion Housing Infrastructure Fund.

It was one of five of New Zealand's fastest-growing councils who submitted successful applications.

The loans will enable the building of 1850 houses in the Kingston township and new greenfield sites in Quail Rise South on the Frankton Flats.

Mr Twyford said: "The infrastructure at Kingston to support new housing includes new water supply and sewage treatment plants.

"There will also be storm water network infrastructure for the existing town and new development, along with the reticulation of water supply and waste water to the existing area.

"This will support Kingston's development as a more affordable housing location in easy reach of Queenstown.''

Development in Kingston will now be accelerated with the first of the 950 houses expected in 2020.

The HIF financing will also speed up the building of housing in Quail Rise South on the Frankton Flats by bringing forward housing construction by seven years.

Infrastructure will include a reservoir and water mains, a gravity wastewater main, and connector road to SH6, bus stops and a pedestrian underpass to the Frankton Flats commercial area.

The development is expected to provide 900 houses within ten years.

"Councils in high growth areas like Queenstown are keen to get started on housing developments. Funding towards infrastructure to support those developments will go a long way to ease the pressures on councils.

"More announcements are coming. Officials from the Ministry of Business, Innovation and Employment and the New Zealand Transport Agency are currently working with Queenstown Lakes District Council on a proposal for further development at Ladies Mile.''

Mr Twyford said finalising the loan from the HIF was a great example of how central and local government can work together to address New Zealand's housing crisis.

The $1 billion HIF will enable at least 28,000 new dwellings in high growth areas to be built over the next ten years.