Build-ready Development Pathway
The Build-ready Development Pathway helps to secure affordable housing through build-ready developments that might not go ahead without government support.
About the Build-ready Development Pathway
Rising costs of materials and labour and a drop in house prices means that construction of some consented developments might not go ahead without government support.
For eligible build-ready developments, where construction hasn’t started, we can work with developers, by either:
- purchasing their land under a government land acquisition programme; or
- prepurchasing or underwriting homes ‘off the plans’ to reduce risk for developers and their financiers.
Who the homes will be sold to
Supporting eligible developments means that we can continue to build homes for both rental and home ownership where they’re needed most. These homes will be made available at prices that mean people and whānau can afford not just their housing costs, but food and other necessities.
Depending on the location and types of homes that are built, and the greatest need in the community, the completed homes may be sold to:
- Community Housing Providers or Māori Housing Providers for transitional housing, public housing, progressive home ownership, or affordable rentals
- Kāinga Ora for use as public housing, or
- first home buyers.
Applying to sell your land
If you’re applying to sell your land, you’ll need to provide:
- the address of the development
- verification of ownership of the land
- resource consent or evidence that the land is zoned now or in the future for residential development
- a description of the proposed development and site development plans, if any
- willingness to provide due diligence reports and information, and
- an explanation of why they are seeking to sell the land and any Crown funding they may already have received.
How to apply
If you're interested in selling your land, please fill out our online application form. (external link)
Applying for prepurchase commitments or underwrites
We have committed $75 million of the $350 million Affordable Housing Fund for prepurchase commitments and underwrite agreements, to support consented developments where construction hasn’t started, and developers haven’t been able to secure enough presales to satisfy development finance.
To be eligible, you must:
- be an established developer with a track record of success in building new housing in Aotearoa New Zealand
- be prepared to work with us on an open-book basis and show that you have private support or finance to progress the development if you secure presales or an underwrite
- own the land or have an unconditional agreement to own or use the land for development
- have secured resource consent for the land
- explain why you are seeking a prepurchase commitment or underwrite and any Crown funding you may already have received, and
- be ready to start construction, with no other obstacles to development, such as resource consent or infrastructure.
When applying for prepurchase commitments or underwrite agreements, you’ll need to provide:
- the address of the development
- a description of the proposed development and any site development plans
- an overview of your organisation and development experience
- detailed development and building plans, including house typology and the readiness of the development
- information about how you have sought presales and development finance, and
- a description of the benefits of the development, whether it will create more local employment opportunities, and any initiatives that create better climate and environmental outcomes.
Expression of interest
The fund is nearly fully committed, so at this stage we are only able to accept expressions of interest for support through the pathway. We are not able to process applications at the moment. However, you can use this form (external link) to let us know the high-level details of your build ready development and we will contact you to discuss your situation.
If you have any queries, you can email us at BRD@hud.govt.nz.
How we will prioritise developments when assessing applications
We will prioritise developments that:
- are in areas with the highest need for public and transitional housing, or affordable homes to own and rent
- significantly contribute to better housing outcomes for the people who need it most, including housing outcomes for whānau Māori
- are ready to start construction within six to 12 months
- contribute to saving or creating jobs in the construction sector in that location, and
- have significant benefits to the public that outweigh the risk and cost to the Crown.
Areas with an urgent need for more affordable housing developments that will be prioritised for funding through presales or underwrites include:
- Te Tai Tokerau – Far North
- Kirikiriroa – Hamilton
- Tauranga Moana – Tauranga
- Tūranga-nui-a-Kiwa – Gisborne
- Te Rotorua-nui-a-Kahumatamomoe – Rotorua
- Ahuriri – Napier
- Heretaunga – Hastings
- Whanganui – Whanganui
- Te Papaioea – Palmerston North
- Te Tai o Aorere – Nelson-Tasman Region.