Development contributions may be required for both residential and non-residential development, if the development creates a demand for council-provided infrastructure.
The amount of development contributions you would be required to pay will depend on the type of development you are undertaking.
Common types of developments
The most common types of development which trigger payment of a development contribution are:
- subdividing a property;
- altering a dwelling so it can be used as two households;
- building or expanding a new non-residential building;
- connecting to the stormwater, water or wastewater infrastructure.
Less obvious types of development that may require development contributions payment
There are other developments that may trigger payment of a development contribution.
- More than one house on an allotment
- Building a new residential building
- Building a granny flat or sleep-out or other additional spaces
- Adding more bedrooms
- Changing the primary use of a building (e.g. residential to commercial or vice versa)
- Connecting a new or existing building to council’s water/wastewater network
- Relocating buildings
More than one house on an allotment
If you build more than one house on a lot, you will likely need to pay development contributions for the additional dwelling.
Houses with two living areas, additional offices or granny flats
Some examples include:
- adding a new kitchen or bathroom facilities so that the house can now be used as two households
- installing fire rating in an existing house so that it can be safely used as two independent homes
- building a granny flat or sleep-out or other additional spaces. Especially if these spaces have separate bathroom and/or kitchen facilities
- adding more bedrooms to dwellings
- changing the primary use of a building (e.g. residential to commercial or vice versa).
Connecting a new or existing building to council’s water/wastewater network
If you have an existing property that was not connected to council’s reticulated networks, you can ask council for permission to connect (provided the services are available). If the application is approved it may trigger the requirement to pay development contributions.
If you move an existing building to a new site in Whiritoa, Waihi, Paeroa, Turua or Ngatea, it may trigger the requirement to pay development contributions. For example, if the house was pre-built offsite, development contributions would not have been paid prior, and may need to be paid when you relocate it.
Certificate of acceptance
If you complete development work without the correct consent and later apply for a certificate of acceptance, this may trigger the requirement to pay development contributions.
Apartment buildings are assessed as a residential activity. Each apartment will be charged a fee. Although apartments may be in one and the same building, the demand their occupants place on council infrastructure (e.g. pipes, roads, playgrounds) amounts to the same as if they were living in multiple houses/buildings instead.
Caravans and tiny homes
If a caravan or tiny home is being used for residential purposes and is not considered a temporary structure or is connecting to council services, it may trigger the requirement to pay development contributions.
Change of primary use of building
If you change the use of a building i.e. from residential to commercial or vice versa, this may trigger the requirement to pay development contributions. Development contributions are calculated differently for commercial buildings compared to residential. A credit for the previous activity will be applied to the site and offset against the fees for the new activity.
Credits for buildings removed
When a building has been removed or demolished, a credit will apply to the site and the amount will be offset against any future development of the site.