Local Government Act 2002

Regulatory, enforcement, and coercive powers of local authorities - Development contributions - Powers to recover unpaid development contributions

208: Powers of territorial authority if development contributions not paid or made

You could also call this:

"What happens if you don't pay a development contribution to your local council?"

Illustration for Local Government Act 2002

If you do not pay a development contribution, the territorial authority can take action. They can stop you getting a certificate under section 224(c) of the Resource Management Act 1991 or prevent you from starting a project that needs a resource consent under the Resource Management Act 1991. They can also stop you getting a code compliance certificate under section 95 of the Building Act 2004 or a certificate of acceptance under section 99 of the Building Act 2004.

If you owe a development contribution, the territorial authority can stop you connecting to services like water or electricity. They can also register the debt as a charge on the land title under subpart 5 of Part 3 of the Land Transfer Act 2017. This means you will not be able to sell the land until the debt is paid.

In some cases, Kāinga Ora–Homes and Communities may be responsible for granting consents or certificates. If this happens, Kāinga Ora–Homes and Communities can work with the local authority to take action if you do not pay a development contribution. Kāinga Ora–Homes and Communities can exercise the power to stop you getting a certificate or consent on the local authority's behalf.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM173850.


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209: Refund of money and return of land if development does not proceed, or

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Part 8Regulatory, enforcement, and coercive powers of local authorities
Development contributions: Powers to recover unpaid development contributions

208Powers of territorial authority if development contributions not paid or made

  1. Until a development contribution required in relation to a development has been paid or made under section 198, a territorial authority may,—

  2. in the case of a development contribution required under section 198(1)(a),—
    1. withhold a certificate under section 224(c) of the Resource Management Act 1991:
      1. prevent the commencement of a resource consent under the Resource Management Act 1991:
      2. in the case of a development contribution required under section 198(1)(b), withhold a code compliance certificate under section 95 of the Building Act 2004:
        1. in the case of a development contribution required under section 198(4A), withhold a certificate of acceptance under section 99 of the Building Act 2004:
          1. in the case of a development contribution required under section 198(1)(c), withhold a service connection to the development:
            1. in each case, register the development contribution under subpart 5 of Part 3 of the Land Transfer Act 2017, as a charge on the title of the land in respect of which the development contribution was required.
              1. Subsection (3) applies if Kāinga Ora–Homes and Communities is responsible for granting the consent, authorisation, or certificate to which an action described in any of paragraphs (a) to (c) of subsection (1) relates.

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

              Notes
              • Section 208(1)(a)(i): 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 208(1)(a)(ii): 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 208(1)(b): amended, on , by section 414 of the Building Act 2004 (2004 No 72).
              • Section 208(1)(ba): inserted, on , by section 63 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).
              • Section 208(1)(d): amended, on , by section 250 of the Land Transfer Act 2017 (2017 No 30).
              • Section 208(2): inserted, on , by section 300 of the Urban Development Act 2020 (2020 No 42).
              • Section 208(3): inserted, on , by section 300 of the Urban Development Act 2020 (2020 No 42).