Residential Development Underwrite
The Residential Development Underwrite (RDU) is a new, time-limited initiative. The underwrite will act as the pre-sales needed for developers to secure bank finance for consented, costed and ready-to-commence projects.
It will help maintain capacity in the sector, help grow housing supply and support developments to be ready for when buyers return to the market.
About the Residential Development Underwrite
The RDU aims to support developments that deliver housing relative to the local market demand, with low risk of the underwrite being triggered. This means developments must have good financial feasibility, reasonable developer equity input, and be in locations where buyers want to purchase.
Developments that deliver the most homes for the least risk and cost to the Crown will be prioritised. Developments in the main centres (Auckland, Hamilton, Tauranga, Wellington and Christchurch) are likely to best meet RDU objectives. However, developments in other locations that meet the full criteria may also be considered.