Favored $1 billion house development fund set in motion

Kainga Ora representative says the fund has been “very popular”

Favored $1 billion house development fund set in motion

The evaluation process for the $1 billion Infrastructure Acceleration Fund (IAF) has commenced after receiving a positive response from councils, iwi and developers.

According to Caroline McDowall, general manager commercial group at Kainga Ora, the fund has been very popular since it was announced as part of the Government’s $3.8 billion Housing Acceleration Fund last March.

The IAF received over 200 proposals sprawled across regions, with the applications totalling over $5 billion of funding requests—many of which are from territorial authorities.

Read more: Government announces criteria for $1 billion house development funding

“The applications that we have received for the IAF represent potential housing outcomes for New Zealand ranging from small, localised developments to large-scale developments with over 3,000 houses,” McDowall said.

Each proposal will be evaluated and endorsed to the next round if approved by Kainga Ora. This rigorous process ensures that the funds will end up with “the greatest potential to succeed in locations that need it the most.”

The initial evaluation is currently underway, with results coming out in mid-October. Among the criteria being taken into consideration are a proposal’s cost-effectiveness and an applicant’s contribution.

“Although the majority of the final IAF funding decisions will be made in 2022, there may be some proposals that we can fast-track through the negotiation process to get underway in the coming months,” McDowall said. “We look forward to…seeing the successful IAF applications starting to deliver great housing outcomes for New Zealanders over the next few years.”

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