Infrastructure Acceleration Fund
The Infrastructure Acceleration Fund (IAF) is a contestable fund of at least $1 billion for infrastructure investment to unlock housing development in the short to medium-term. This is part of the Government’s $3.8 billion Housing Acceleration Fund, which was announced in March 2021.
Locations that have infrastructure constraints and are facing the biggest housing supply and affordability issues will be prioritised. This will help to secure the greatest impact from the IAF, while also ensuring that there is an ability for quality projects from anywhere in Aotearoa to receive funding.
The IAF will address some of the underlying barriers to supply by:
- opening up more land for housing development, particularly in locations close to jobs and amenities
- helping to fund the critical infrastructure needed for that development,
- allowing for a wider mix of housing that is affordable for low- to moderate-income households to own or rent
- freeing up development-ready land and accelerating housing development to moderate growth in house and land prices.
For interested applicants, the IAF will be a two-stage contestable process. Eligible applicants will first submit expressions of interest, with a smaller number invited to submit full proposals. All proposals will be assessed against a common set of investment criteria.
Most final decisions will be made in 2022, although there is the ability to fast-track some decisions to be made late in 2021 for projects that are already well validated and align strongly with the criteria.
Published: June 22, 2021