After years of research, debate, public consultation, submissions and hearings, a recommendation has been made that the council’s proposal to introduce an “Inclusionary Housing Variation” to the proposed district plan (also known as inclusionary zoning) be withdrawn.

Following a report from an independent hearing panel, Queenstown Lakes District Council (QLDC) announced today (Tuesday July 30) that it acknowledged the panel’s report and the recommendation to withdraw the proposal would be put to elected councillors.

The proposal would have required most new residential subdivisions and developments, as well as individual housing projects, to make a contribution of either land or money to council.

The contribution would have been passed on to registered community housing providers, such as the Queenstown Lakes Community Housing Trust, to develop housing to assist low to moderate income earners.

QLDC planning and development general manager Dave Wallace acknowledged the panel found more research and assessment was required to confirm whether the inclusionary zoning proposed would be effective.

Instead, the panel suggested the housing affordability issue should be the subject of a mix of regulatory and non-regulatory options, and preferred a package of targeted measures to increase affordable housing provision in the Queenstown Lakes.

Council staff and consultants had developed a detailed case supporting the proposal on the basis that inclusionary housing rules could help deliver more affordable housing, Dave said.

“However, the independent hearing panel considered there was not enough research, analysis, and assessment of several alternatives that could be used to address housing affordability, meaning they could not make a recommendation in favour of the proposed inclusionary housing variation,” he said.

Options, such as providing funding through rates and development contributions, via planned urban intensification, and partnering with organisations and central government needed to be explored further, the panel said.

Inclusionary zoning would have increased the cost of building a house on land not already included in “affordable housing” deals.

It also recommended directly addressing the district’s residential visitor accommodation (Airbnb, etc) which was “a primary cause of the affordable housing issue and lack of rental housing”.

Dave said council staff had already begun work on most of the alternatives put forward by the panel.

QLDC is the only council in New Zealand to propose this model of inclusionary zoning in its district plan and from the beginning fundamental questions about its legality under the Resource Management Act (RMA), practicality, fairness, and implementation alongside the national policy statement on urban development were raised in numerous submissions to council.

In August 2023, councillors approved the appointment of an independent hearing panel to conduct a hearing and write a recommendation on public submissions received. Public submissions overwhelmingly opposed the council’s inclusionary zoning policy proposal.

The panel comprised four commissioners: Jan Caunter (chair), Jane Taylor, Ken Fletcher, and Dr Lee Beattie, and the public hearing ran from February 27 – March 7, 2024. The panel’s report was issued last month.

The panel confirmed the council’s proposal was lawful, consistent with, and within the scope of the RMA and would implement the national policy on urban development. However, it was not satisfied that inclusionary zoning was the most appropriate option to address the identified resource management issue, Dave said.

The recommendation to withdraw the inclusionary zoning proposal will be discussed and voted on by the district’s councillors during the full council meeting in the Lake Wānaka Centre on Thursday (August 1) afternoon.

Read more:

• ‘Inclusionary zoning: a closer look’
• ‘Thumbs down from locals to inclusionary housing proposal’

PHOTOS: Wānaka App