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Local Government Act 2002

Regulatory, enforcement, and coercive powers of local authorities - Development contributions - Development contributions policy

203: Maximum development contributions not to be exceeded

You could also call this:

“Council can't charge more than allowed for development contributions”

When you’re dealing with development contributions for reserves, there are limits on how much can be charged. The charge can’t be more than the bigger of these two options:

  1. 7.5% of the value of the new sections created by splitting up land
  2. The value of 20 square metres of land for each new house or accommodation unit built

For development contributions related to network infrastructure or community infrastructure, there’s also a limit. To figure out this limit, you need to:

  1. Calculate the cost for one unit of demand using clause 1 of Schedule 13
  2. Count how many units of demand the development needs, as shown in clause 2 of Schedule 13
  3. Multiply these two numbers together

The final amount might be adjusted based on changes in the Producers Price Index, if that’s included in the development contributions policy as allowed by section 106(2B).

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM173842.

Topics:
Government and voting > Local councils
Housing and property > Land use
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Part 8 Regulatory, enforcement, and coercive powers of local authorities
Development contributions: Development contributions policy

203Maximum development contributions not to be exceeded

  1. Development contributions for reserves must not exceed the greater of—

  2. 7.5% of the value of the additional allotments created by a subdivision; and
    1. the value equivalent of 20 square metres of land for each additional household unit or accommodation unit created by the development.

      1. Development contributions for network infrastructure or community infrastructure must not exceed the amount calculated by multiplying the cost of the relevant unit of demand calculated under clause 1 of Schedule 13 by the number of units of demand assessed for a development or type of development, as provided for in clause 2 of Schedule 13, and as amended for any Producers Price Index adjustment adopted in a development contributions policy in accordance with section 106(2B).

      Notes
      • Section 203(1)(b): amended, on , by section 60(1) of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).
      • Section 203(2): amended, on , by section 60(2) of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).