$159 million Build Ready Development pathway fund will prioritise applications from weather affected regions
Published 07 Jun 23
The second round of applications for the Build Ready Development pathway are now open. Residential developers can check the criteria and priorities, and then apply through the Build Ready Development pathway on Ministry of Housing and Urban Development (HUD) website.
Matt Fraser, Head of Land Acquisition and Development says the Build Ready Development pathway will support developments that might not otherwise proceed, in regional areas of high unmet housing need. “This second round will prioritise applications from regional areas that have been impacted by recent weather events including Te Tai Tokerau, Hawke’s Bay, Tairāwahiti and Bay of Plenty.
“The Build Ready Development pathway provides developers who have eligible, build-ready developments in regional areas of high unmet housing need with two routes to Government support. This can be either by referring requests to sell ‘build-ready’ land to a suitable Government land acquisition programme or by the Government agreeing to prepurchase or underwrite homes off-the-plans, which provides support to unlock third party finance and keep the development moving,” says Matt Fraser.
This second round represents $159 million of funding and all developments must include affordable housing. Final decisions on prepurchase or underwrite commitments will be made jointly by the Minister of Housing and Minister of Finance.
The pathway helps delivery of affordable housing supply through supporting developments that, due to the changing market conditions, are unable to progress.
Matt Fraser says developers applying for underwrite or prepurchase commitments need to have resource consent, own the land, be ready to start the build within six to 12 months and have a valid reason why the development has stalled. “We’re looking for truly ‘build-ready’ developments in regional Aotearoa and to work with developers that can provide full financial feasibility studies and evidence of discussions with banks or lenders to put through our fast-track investment process. This means we can help deliver public and affordable housing in these challenging times, where we need it the most,” says Matt Fraser.
Applications will remain open until 4pm Friday 16 June.