A High Court decision on a legal dispute between the council and two property developers is delaying the supply of affordable housing in the Queenstown Lakes district.
Queenstown Lakes District Council (QLDC) senior policy analyst Scott Figenshow said the Environment Court should have decided this month how to apply the council's Plan Change 24 - Affordable and Community Housing (PC24).
However, an application against PC24 by Infinity Investment Group Holdings and Willowridge Developments Ltd has delayed the Environment Court decision.
Mr Figenshow said the High Court hearing, which took place on November 22, looked at the developers' concerns of whether PC24 would be the most effective way of delivering affordable housing in the district, and whether it was an appropriate use of the Resource Management Act.
Infinity general manager Marc Bretherton and Willowridge director Allan Dippie have both described PC24 as an unfair tax on district property developers who are already providing affordable housing schemes.
The QLDC wants to use PC24 to impose a levy, under the resource consent process, when land is rezoned from rural to urban classification.
In July, the Environment Court ruled the QLDC could address housing affordability under the Act, despite opposition from property developers Remarkables Park Ltd, Five Mile Holdings Ltd (subsequently placed in receivership) and a group comprising Infinity, Willowridge and Orchard Road Holdings Ltd.
Mr Figenshow said until a decision was released from the High Court early next year, the Environment Court decision to establish the best method of delivering sustainable housing would be postponed.
