Building Act Requirements
Developers are required to pay a financial or Development Contribution to Council when developing or subdividing a property. Development Contributions are used by the Council to ensure that developers, not ratepayers, fund the costs of growth caused by development, such as infrastructure. Development Contributions are used to pay for new and or expanded infrastructure such as water, waste water, stormwater, roads, and community infrastructure, to cope with the effects of development.
How are Development Contributions Calculated?
The contributions are calculated on the anticipated costs that the development will have on infrastructure. The amounts vary depending on both the area and the level of growth and infrastructure required to accommodate the development.
Contributions will also vary depending on your local Council and their Development Contributions Policy in their Long-Term Council Community Plan (LTCCP). Each Council of the Waikato Building Consent Group has the full policy available on their website (click on links below to view), or for further information please contact the Planning Unit of your local Council:
Otorohanga District Council: LTCCP 2009/10 to 2018/19
Matamata-Piako District Council: LTCCP 2009-2019
Waikato District Council: LTCCP 2009-2019
Waipa District Council: LTCCP 2009-2019
Hamilton City Council: LTCCP 2009-2019
Who pays Development Contributions?
Developers or owners who are creating new developments.
Developers or owners who subdivide, cross-lease or unit title their sections.
Developers or owners who construct new commercial, retail or industrial buildings or make changes to existing commercial, retail and industrial buildings.
Businesses or property owners who change their business use or request a connection to a service - for example, a new water connection when a business premise is being changed from a small retail store to a cafe.
Owners building residential units including Minor Units, “Granny Flats” or Ancillary Flats.
Why do I have to pay?
With population growth comes an increased demand for infrastructure. Growth in the districts cannot be sustained unless we have development and financial contributions. The existing population has already made a considerable investment in the current infrastructure. Those initiating new developments benefit from using existing infrastructure and consequently, they will place additional pressure on it. Developers, therefore, need to contribute towards the capital expenditure.
Do I have to pay more than once?
No. The contribution is a one-off charge towards the infrastructure of the community. The subsequent operation and maintenance is covered through rates and other charges.
When will Council Charge the Contribution?
Contributions will generally be assessed and charged during the Resource Consent or Building Consent stage, which ever takes place first.
What does Council do with the Contribution?
Contributions are used for providing new or expanded infrastructure. They are not used for maintenance and are only used for the purpose for which they were taken e.g. a roading contribution is only used for constructing new roads and intersection improvements.
Development Contributions are used to provide reserves, network infrastructure (transport, water supply, stormwater drainage, waste water and waste water treatment) and community infrastructure (parks assets, community centres and leisure centres). They will not be used to pay for renewing or replacing existing infrastructure, although they may contribute if the replacement infrastructure needs to cater for extra demand as a result of growth.
For further information about Development Contributions, please contact the Planning Unit of your local Council.
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Page last updated: 2013-03-07