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Local Government Act 2002

Regulatory, enforcement, and coercive powers of local authorities - Development contributions - Contributions may be required by territorial authorities

198: Power to require contributions for developments

You could also call this:

"Councils can ask for a payment when you build or develop something in their area"

Illustration for Local Government Act 2002

A territorial authority can ask you to pay a development contribution when they grant you a resource consent under the Resource Management Act 1991 to develop something in their area. They can also ask for a development contribution when they grant you a building consent under the Building Act 2004 to do building work in their area. A territorial authority can only ask for a development contribution if it is allowed in a policy they have adopted.

If Kāinga Ora–Homes and Communities is responsible for granting the consent, they can work with the local authority to ask for the development contribution. The local authority has rules about when they can ask for a development contribution, and they must follow these rules. You can find more information about building consents and resource consents in the Building Act 2004 and the Resource Management Act 1991.

A territorial authority can ask for a development contribution when they grant a certificate of acceptance under section 98 of the Building Act 2004 if a development contribution would have been required had a building consent been granted. The territorial authority must have a policy that allows them to ask for development contributions, and they must follow this policy. They can only ask for a development contribution if it is consistent with their policy and the law.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM173823.

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Government and voting > Local councilsEnvironment and resources > Town planningHousing and property > Buying and selling homes
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Part 8Regulatory, enforcement, and coercive powers of local authorities
Development contributions: Contributions may be required by territorial authorities

198Power to require contributions for developments

  1. A territorial authority may require a development contribution to be made to the territorial authority when—

  2. a resource consent is granted under the Resource Management Act 1991 for a development within its district:
    1. a building consent is granted under the Building Act 2004 for building work situated in its district (whether by the territorial authority or a building consent authority):
      1. an authorisation for a service connection is granted.

        1. A territorial authority may only require the development contribution as provided for in a policy adopted under section 102(1) that is consistent with section 201.

        2. For the purposes of subsection (2), a development contribution must be consistent with the content of the policy adopted under section 102(1) that was in force at the time that the application for a resource consent, building consent, or service connection was submitted, accompanied by all required information.

        3. A requirement for a development contribution under subsection (1)(a) or (1)(b) is not—

        4. a condition of a resource consent that gives rise to any right of objection or appeal; or
          1. as the case may be, a matter that gives rise to any right to apply to the chief executive for a determination under the Building Act 2004.

            1. Subsection (3) is for the avoidance of doubt.

            2. If a development contribution policy provides for a development contribution under subsection (1)(b), the territorial authority may require that development contribution to be made when granting a certificate of acceptance under section 98 of the Building Act 2004 if a development contribution would have been required had a building consent been granted for the building work in respect of which the certificate is granted.

            3. Subsection (4C) applies if Kāinga Ora–Homes and Communities is responsible for granting the consent, authorisation, or certificate referred to in subsection (1) or (4A).

            4. Kāinga Ora–Homes and Communities may, as appropriate and by agreement with the local authority, exercise the power under the relevant subsection on the local authority's behalf.

            5. In this section,—

              building consent authority means a person whose name is entered in the register referred to in section 273(1)(a) of the Building Act 2004

                chief executive has the meaning given to it in section 7 of the Building Act 2004.

                Notes
                • Section 198(1): substituted, on , by section 414 of the Building Act 2004 (2004 No 72).
                • Section 198(1): amended, on , by section 23(1) of the Local Government Act 2002 Amendment Act 2006 (2006 No 26).
                • Section 198(1)(a): amended, on , by section 6 of the Resource Management (Natural and Built Environment and Spatial Planning Repeal and Interim Fast-track Consenting) Act 2023 (2023 No 68).
                • Section 198(1)(b): amended, on , by section 23(2) of the Local Government Act 2002 Amendment Act 2006 (2006 No 26).
                • Section 198(2): amended, on , by section 52(1) of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).
                • Section 198(2): amended, on , by section 49 of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).
                • Section 198(2A): inserted, on , by section 52(2) of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).
                • Section 198(3): substituted, on , by section 23(3) of the Local Government Act 2002 Amendment Act 2006 (2006 No 26).
                • Section 198(4): added, on , by section 23(3) of the Local Government Act 2002 Amendment Act 2006 (2006 No 26).
                • Section 198(4A): inserted, on , by section 52(3) of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).
                • Section 198(4B): inserted, on , by section 300 of the Urban Development Act 2020 (2020 No 42).
                • Section 198(4C): inserted, on , by section 300 of the Urban Development Act 2020 (2020 No 42).
                • Section 198(5): added, on , by section 23(3) of the Local Government Act 2002 Amendment Act 2006 (2006 No 26).