Resource Management (Enabling Housing Supply and Other Matters) Amendment Act 2021

The Resource Management (Enabling Housing Supply and Other Matters) Amendment Act passed into law on 20 December 2021. The primary objective of this Amendment is to address the housing demand issues in New Zealand by speeding up the implementation of the National Policy Statement on Urban Development (NPSUD) and enabling the intensification of housing in urban areas.

The Amendment introduces:

• A requirement on Tier 1 councils to implement medium density residential standards (MDRS) into their district plans.
• The creation of a streamlined planning process to enable councils to implement intensification policies faster.

The changes apply to specified territorial authorities including Auckland, Hamilton, Tauranga, Wellington Region and Christchurch (also identified in the NPSUD as Tier 1), and Rotorua Lakes district as well as any Tier 2 council that may be required to incorporate them in their plans by regulations due to ‘acute housing needs’. ^{d590831f-b1d7-4955-8ed7-47dd946ba564}

The MDRS provides for the development of three dwellings of up to three storeys on each site (not exceeding 11m in height), without the need for resource consent (a permitted activity). Some effects may still require consent, such as when it comes to height in relation to boundary, boundary setbacks, site coverage, impervious area, outdoor living space, outlook space, windows to street and landscaped area. ^{161e4979-23ee-49f5-8ee1-ae2e0347d3b2}  Public and limited notification is precluded for the development of four or more residential units provided there is compliance with the density standards. ^{3fea9122-3aa4-4f40-baab-58101986adc2} Most district plans currently enable only two storeys and one dwelling per site.

The MDRS apply to all residential zones in an urban environment.

Specified territorial authorities may provide for less development intensity in a residential zone than the MDRS and building heights and density requirements under the NPS-UD, if 1 or more of the following matters are present: ^{46ebe9d8-d42b-4647-be83-b283ac3aeb77}

• A matter of national importance under section 6 of the RMA
• A matter required to give effect to other National Policy Statements or the New Zealand Coastal Policy Statement
• A matter required to give effect to Hauraki Gulf Marine Park Act 2000 or the Waitakere Ranges Heritage Area Act 2008
• A matter required for the purpose of ensuring the safe of efficient operation of nationally significant structure
• The need to give effect to a designation or heritage order
• A matter necessary to implement or ensure consistency with iwi participation legislation
• The requirement in the NPS-UD to provide sufficient business land for low density uses to meet expected demand.

To incorporate MDRS into a district plan, specified territorial authorities are required to prepare an intensification planning instrument (IPI), which is a change to a district plan or a variation to a proposed district plan.

An IPI must be prepared, notified and progressed through a special planning process called the intensification streamlined planning process. This process involves the establishment of an independent hearing panel to hear submissions and to make recommendations to the relevant territorial authority. ^{6c23b90c-b835-453d-aa1b-1cea83e6cec3}

There is no right of appeal, but the Act does not constrain judicial review. ^{1f9d2ef6-dabd-486a-9c97-85c7d2773528}

Tier 1 territorial authorities and Rotorua Lakes District Council have been required to include MDRS in their district plans from August 2022. ^{b25ecaa8-9ed9-4c10-9f8c-e2d883913e06}

The Government has signalled that the implementation of the MDRS may become optional for councils, provided they meet Housing Growth Targets.

Future changes to the NPSUD

In July 2024, the National-led Coalition Government announced the ‘Going for Housing Growth Programme’, aimed at addressing the root causes of New Zealand’s housing supply shortage. The programme is built around three pillars:

1. Freeing up land for urban development, including removing planning barriers
2. Improving infrastructure funding and financing to support urban growth
3. Providing incentives for communities and councils to support growth.

The Government has announced its decisions related to the first pillar, which are expected to be implemented through amendments to the RMA and the NPSUD. These requirements are anticipated to be in place by mid-2025.

The decisions include:

• Housing Growth Targets: Tier 1 and 2 councils will be required to meet new housing targets to enable 30 years of feasible housing capacity in their district plans.
• Optional MDRS: Councils will be able to opt out of the MDRS if they demonstrate their Housing Growth Target.
• Streamlined Planning Process: Councils will be required to use the Streamlined Planning Process for removing or altering the MDRS.
• Enabling greenfield growth: Councils will no longer be able to impose rural urban boundaries to constrain growth.
• Urban intensification: Tier 1 councils will be required to enable housing density across their urban areas, particularly in high-demand areas and along key ‘strategic transport corridors’.
• More mixed-use development: Tier 1 and 2 councils will be required to enable more mixed-use development across their urban areas, particularly in Tier 1 areas where six-storey buildings are required.
• Ending minimum floor area and balcony requirements: Councils will no longer be able to set rules that require balconies or floor areas to be of a minimum size.
• Powers to the Minister for the Environment: The Minister for the Environment will have new intervention powers to ensure compliance with national direction, including housing and business development capacity assessments.

Last updated at 11:40AM on January 31, 2025