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Resource Management Act 1991

Transitional provisions - Subdivision and development

409: Financial contributions for developments

You could also call this:

“Rules for collecting money or land from people building or dividing property when there's no plan for the area”

When you apply for a resource consent for a development in an area without a district plan, or where the plan doesn’t include specific provisions, the local council can set conditions on your consent. These conditions can include things like financial contributions or setting aside land for public use.

If the council asks you to make a financial contribution, it could be similar to what they used to require under old laws. For example, they might ask you to pay money towards reserves or to set aside some of your land as a public reserve.

When the council looks at your application, they’ll treat it as if you’re applying for approval under the old laws. This means they can apply similar conditions to what they used to.

The council can ask for these contributions even for big developments that cost more than $50 million.

If there’s an old district plan that allowed development without needing extra approval, your application will be treated as a controlled activity. This means the council won’t publicly notify your application.

These rules will stop applying in your area once a new district plan becomes active.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM240374.

Topics:
Housing and property > Land use
Government and voting > Local councils
Environment and resources > Town planning
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Part 15 Transitional provisions
Subdivision and development

409Financial contributions for developments

  1. Subject to section 410, where an application for a resource consent for a development is made in respect of land for which there is no district plan, or where the district plan does not include provisions of the kind contemplated by section 108(2)(a), the territorial authority may impose, as a condition of the consent,—

  2. any condition described in any of sections 283, 289, 291, 292, 321A, or 322 of the Local Government Act 1974 that, by virtue of section 281 or section 294B of that Act, could have been imposed in respect of a development if those sections had not been repealed by this Act:
    1. any requirement that could have been imposed in respect of a development under section 294 of the Local Government Act 1974 (if that section had not been repealed by this Act) to pay a reserves contribution or to set aside, as public reserve, any area of land.

      1. For the purposes of subsection (1)—

      2. every reference in sections 283, 289, 291, 292, 321A, and 322 of the Local Government Act 1974—
        1. to an application for the approval of a scheme plan, shall be deemed to be a reference to an application for a resource consent; and
          1. to the approval of a scheme plan, shall be deemed to be a reference to a grant of a resource consent; and
          2. every reference in section 294 of the Local Government Act 1974 to a requirement under section 293 of that Act to notify the Council of a proposed development, shall be deemed to be a reference to an application for a resource consent.

            1. For the purposes of subsection (1)(b), section 294 of the Local Government Act 1974 shall be read as if that section had not been repealed by this Act and as if section 294(1) of that Act did not contain the words and the assessed value of the development is not in excess of $50 million.

            2. For the purposes of this section and sections 410 and 411, development has the same meaning as in section 271A of the Local Government Act 1974 before its repeal by this Act.

            3. Where a district plan or proposed district plan has been deemed to be constituted by section 373 and a provision, expressly or by implication and whether or not subject to conditions, of that plan or proposed plan authorised a development without further consent or approval from the former consent authority being required, then, notwithstanding section 374(3)(a), such a development is deemed to be a controlled activity only for the purposes of subsections (1) and (2), and any application for a land use consent to which this subsection applies shall not be notified under sections 95 to 95G.

            4. This section shall cease to have effect in a district on the date that the proposed district plan for the district becomes operative, not being a proposed district plan constituted under section 373.

            Notes
            • Section 409(1): amended, on , by section 65 of the Resource Management Amendment Act 1997 (1997 No 104).
            • Section 409(2A): inserted, on , by section 194(1) of the Resource Management Amendment Act 1993 (1993 No 65).
            • Section 409(4): inserted, on , by section 194(2) of the Resource Management Amendment Act 1993 (1993 No 65).
            • Section 409(4): amended, on , by section 66 of the Resource Management Amendment Act 2013 (2013 No 63).
            • Section 409(4): amended, on , by section 150 of the Resource Management (Simplifying and Streamlining) Amendment Act 2009 (2009 No 31).
            • Section 409(5): inserted, on , by section 194(2) of the Resource Management Amendment Act 1993 (1993 No 65).