Urban Development Act 2020

The Urban Development Act 2020 aims to consolidate various powers related to Resource Management Act consenting, plan changes, infrastructure planning, funding, and delivery, as well as other powers (including land acquisition and road stopping), into a single statutory framework. The intention of the Act is to create a more streamlined and integrated framework for the development of specific parcels of land with complex development needs that would otherwise require fragmented decision-making under more general legislation such as the Resource Management Act, Local Government Act and Land Transport Management Act (among others). 

The need to provide for greater housing supply and associated infrastructure at pace provides the context in which the legislation was enacted, although the Act is not limited to just housing development. For example, it can apply to purely commercial developments with little or no residential component.

The main objectives of the Act are to provide:

  1. A mechanism to streamline planning, consenting, infrastructure and land development processes for selected urban development projects initiated, facilitated or undertaken by Kāinga Ora Homes and Communities
  2. Powers for the acquisition, development, and disposal of land
  3. Additional powers, right and duties to Kāinga Ora for the performance of its urban development functions.

The Act divides functions, powers, rights and duties into two categories: those that apply only to specified development projects (SDPs) and those for other urban developments facilitated by Kāinga Ora. ae529c70-aea0-4646-85a1-740746ad0b7c  

Kāinga Ora itself is a Crown entity that was established through the Kāinga Ora – Homes and Communities Act 2019 with the mandate to be a public housing provider (effectively, the Government’s landlord) and to undertake urban development projects on its own or in partnership with others (e.g., private sector developers). With respect to the latter, its functions and powers were extended through the Urban Development Act, transforming it into a national urban development authority with extensive powers.

Specified Development Projects

SDPs are defined development initiatives that consolidate multiple, typically separated processes required for urban development into a single integrated process, involving planning, funding and delivery of development.

Every SDP recommended by Kāinga Ora and accepted by the joint Ministers (the Minister of Housing and the Minister of Finance) must include three features: 71aa8940-d54a-406b-b407-50f1d8bbe063  

  • Project objectives
  • A project area (defined by geographical boundaries); and
  • A project governance body.

A potential urban development project, or an urban development project that is already being undertaken, may be selected for assessment as a potential SDP either by Kāinga Ora or by the joint Ministers (who may direct Kāinga Ora to assess the project).

Establishing a Specified Development Project

To establish an SDP, Kāinga Ora is required to:

  • Carry out an initial project assessment: This includes the identification of constraints and opportunities including those relating to protected land, nationally significant infrastructure, any coastal marine area, land with conservation status, former Māori land and land owned by the Crown. It also involves engaging with Māori, local authorities, and key stakeholders, and publicly notifying the project’s assessment. 9c6ce2d0-483c-4d0d-a990-417b9cc47924  
  • Prepare a project assessment report: This report is provided to the relevant territorial authority, which must indicate whether it supports the project to be established as an SDP.
  • Provide the assessment report with the recommendation to the joint Ministers: The joint Ministers will decide whether to accept or reject the recommendation to establish the project as an SDP. f9c2f6b0-d980-495c-a56a-99f30d4549bd  

If the joint Ministers approve the SDP, they will provide a recommendation to the Governor General who, by Orden in Council, declares the SDP established. ca85d8bd-ce70-4416-a30e-49a37037ffef  

Preparation of a Development Plan

After the establishment of the SDP, Kāinga Ora must prepare a project development plan. e301979f-bc46-451b-9c3d-2a5098e9dffa The plan needs to ensure that the objectives of the project are achieved and that Treaty settlement obligations in the area to which the project applies are provided for.

A development plan must not be inconsistent with: aab4f870-dca6-4343-b6e0-f53bdc52f741  

  • National policy statements
  • The New Zealand Costal Policy Statement
  • National environmental standards; and
  • Any national land transport policy

The development plan must include:

  • A description in general terms of the development proposals including planning matters (e.g., the proposed land use, location of existing infrastructure for the three water services, and community facilities that will be required), any conditions imposed by the Minister of Conservation, any modifications to existing Resource Management Act planning instruments, rules for public notification of a controlled or restricted discretionary activity and any designations that apply. d86d3f85-c0f5-4800-a7d7-a0d1bd2c80c8
  • Details on roading powers and water-related infrastructure, such as whether Kāinga Ora has roading powers in relation to the SDP and whether it seeks consent from landowners and occupiers for the construction of water infrastructure on their land, along with the nature and extent of the required work. 5ef79c6a-e36a-485a-b679-b1c388a3513f
  • Funding sources, specifying if these include development contributions or targeted rates and how they will apply. 33efb0af-2f7b-436a-b0b8-8cc9278ee6e6
  • An evaluation report which includes, among other matters, information on environmental considerations and an infrastructure statement.

Kāinga Ora must publicly notify the draft development plan, consider submissions and make recommendations. 44540aa5-9550-4793-af5f-8914e78b3153

The proposed development plan and Kāinga Ora recommendations are forwarded to an Independent Hearings Panel. This panel is established to ensure that the development plan is subject to independent consideration. bbc556aa-13f4-4b1a-b0fc-8b19fdf8c2cb

The Independent Hearings Panel has 9 months from the date the submission period closes to make its recommendations one the development plan f2f223ed-0e56-445a-93e8-dfd6cd2a6895 to the Minister responsible, who can approve, amend or reject it in full.

Once the development plan is approved by the responsible Minister, it must be notified in the Gazette.

Development powers
Once a development plan becomes operative, Kāinga Ora is empowered to lead and manage the planning, development, and implementation of the SDP on the ground. The Urban Development Act gives it a wide toolkit of development powers that can be used when undertaking SDPs. These include the ability to:

Under the legislation, Kāinga Ora has broad powers to develop land that would otherwise be exercised by different institutions (including local councils) under multiple different statutes. The SDP process ensures these powers are used for a project in a coordinated way in line with the project’s objectives.

Kāinga Ora has the power to acquire land under the Public Works Act 1981 for the broad purpose of urban development, including compulsory acquisition. This means it can acquire fragmented parcels of land and develop them in an integrated way, f126a9d1-de71-477f-80eb-33e1b38d355a especially important when it comes to integration of land uses with rapid transit infrastructure.

Kainga Ora also has the ability to transfer ownership of land to a developer to deliver urban development works. 59f2e695-878b-4581-8afe-3d0287635ae2

Since the enactment of the Act, Kāinga Ora has been assessing different projects as potential SDPs. Currently, it is assessing the Northern Growth Area in Porirua.

  1. Urban Development Act 2020, s 7 and s 8

  2. Section 26

  3. Section 31-35

  4. Section 43-45

  5. Section 47

  6. Section 56

  7. Section 58

  8. Section 60

  9. Section 61

  10. Section 62

  11. Section 74

  12. Section 77

  13. Section 79

  14. Section 64

  15. Section 113

  16. Section 109

  17. Section 131

  18. Section 86

  19. Section 139

  20. Including roading powers and water-related infrastructure powers

  21. Section 181

  22. Part 5

  23. Section 264

Last updated at 3:39PM on February 7, 2025