The Sense Partners 2020 report, commissioned by the Queenstown Lakes District Council to scope the economic costs and benefits of implementing such a policy, said the region’s incomes would need to increase by about $1 billion to make house prices and rents as affordable as the national average.
According to interest.co.nz, the median house price in the Queenstown-Lakes last month was 16.11 times the median household income - nationally, the median multiple was 8.19.
In an effort to increase the supply of affordable housing, the council agreed in August to publicly notify a plan change to include inclusionary housing provisions in its district plan.
Under the controversial proposed change, different amounts would be collected by the council for the Queenstown Lakes Community Housing Trust, depending on what development was occurring.
However, it would capture anyone building on a vacant lot, not already subject to an affordable housing contribution - for example, Hanley’s Farm, Jack’s Point or Shotover Country.
In its submission, prepared by executive officer Julie Scott, the housing trust said over the past 15 years, the housing trust had received about $25 million in land and cash contributions from large-scale developers, and helped 244 households into homes.
However, there were more than 800 more on its waiting list - 53% of those were families with children, 27% were individuals, 17% were couples and 3% were seniors.
"Without [inclusionary housing] becoming a mandatory requirement in the [Queenstown-Lakes], we simply won’t have the resources to house [them]."
The housing trust, as a proposed recipient of the financial contributions, would use the land and cash to house locals committed to the district, by investing it into either the Secure Home scheme, or one of its affordable rental programmes.
Those properties which would form a housing stock held in the Queenstown-Lakes community in perpetuity.
However, the housing trust sought for an exemption for landowners subdividing an existing single lot into two or three new lots in urban zones to make a contribution.
"This will inhibit single landowners from responding to council’s desire for increased density in those urban zones.
"We believe the subdivision of an existing single lot into two or three new lots should be encouraged to promote greater land use and infill development in those urban zones."
The trust also believed any lot which was existing and serviced at the time the plan change became operative should also be exempted from paying a financial contribution on the construction of a single residential dwelling.
Further, it did not support a rule around landowners being subject to a contribution where they had purchased a serviced allotment to build a single residential dwelling, or the proposed "top-up" rule.
"We consider these provisions have gone beyond the original intentions of the policy that landowners undertaking larger subdivisions and developments would be required to make a contribution.
"As such, we would like to see the policy more aligned with the stakeholder deeds and agreements provided since 2003."
Council spokesman Sam White said staff were collating and reviewing submissions received by Thursday’s deadline and hoped to share submissions by year-end, but "given the work involved, it’s possible this will be early next year".
