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New Zealand law explained for everyone

Local Government Act 2002

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

204: Use of development contributions by territorial authority

You could also call this:

“How local councils can spend money they collect from new buildings”

You need to know about how a territorial authority can use development contributions. These are the main points:

When you give a development contribution, the territorial authority must use it for what it was meant for. This means they can spend it on building or improving reserves, network infrastructure, or community infrastructure. They can use the money to develop these things too.

However, the territorial authority is not allowed to use the development contribution money for maintenance. This means they can’t use it to keep the reserves, network infrastructure, or community infrastructure in good condition once they’re built.

There’s one more thing to remember. These rules about how the territorial authority can use development contributions might change a bit because of section 205. This means you might need to check that section to get the full picture.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM173844.

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: Use of development contributions

204Use of development contributions by territorial authority

  1. A development contribution—

  2. must be used for, or towards, the capital expenditure of the reserve, network infrastructure, or community infrastructure for which the contribution was required, which may also include the development of the reserve, network infrastructure, or community infrastructure; but
    1. must not be used for the maintenance of the reserve, network infrastructure, or community infrastructure.

      1. Subsection (1) is subject to section 205.