This document may be cited as: Ministry for the Environment and Ministry of Business, Innovation and Employment. 2016. Introductory Guide to the National Policy Statement onUrban Development Capacity 2016. Wellington: Ministry for the Environment and Ministryof Business, Innovation and Employment.
Published in November 2016 by the
Ministry for the Environment and the Ministry of Business, Innovation and Employment
Manatū Mō Te Taiao and Hikina Whakatutuki
PO Box 10362, Wellington 6143, New Zealand
ISBN: 978-0-908339-71-6
Publication number: ME 1274
© Crown copyright New Zealand 2016
This document is available on the Ministry for the Environment website: www.mfe.govt.nz.
Contents
1 Introduction 5
Purpose and focus of this guide 5
Role of a national policy statement 5
National Policy Statement on Urban DevelopmentCapacity 5
Overview of the requirements 6
Which policies apply to my local authority and when? 6
2 Requirements of all local authorities 10
Objectives 10
Definitions 10
Outcomes for planning decisions 14
3 Requirements of medium- and high-growth urban areas 18
Policies PB1–PB7: Evidence and monitoring to support planningdecisions 18
Policies PC1–PC4: Responsive planning 21
Policies PD1–PD2: Coordinated evidence and decisionmaking 24
Policies that medium-growth local authorities are encouraged to also giveeffectto 25
4 Requirements of high-growth urbanareas 26
Policies PC5–PC14: Responsive planning 26
Policies PD3–PD4: Coordinated evidence and decisionmaking 28
5 NPS-UDC implementation programme 30
References 32
Tables
Table 1: Which objectives and policies apply to which councils and when 9
Figures
Figure 1: Feasible development capacity as a proportion of plan-enabled capacity 15
Figure 2: Take-up of development capacity 22
Figure 3: Timeframes for implementation of the NPS-UDC 31
1 Introduction
Purpose and focus of this guide
This is the first in a series of guides to support local authorities in implementing the National Policy Statement on Urban Development Capacity (NPS-UDC). It provides a general overview of what the NPS-UDC requires and of selected terms and concepts. More detailed guidance will be developed with local authorities and other stakeholders throughout 2017 on how to best implement specific policies in the NPS-UDC.
The main purpose of this introductory guide is to help decision-makers under the Resource Management Act 1991 (RMA) to understand the objectives and policies in the NPS-UDC so they can respond to these as intended. The guide provides a point of reference for council officers, elected members, planners, lawyers and the development community. It draws on the intended outcomes behind the NPS-UDC; however, it is not part of the NPS-UDC and does not have statutory weight.
The guide is organised into sections that correspond to where the NPS-UDC policies apply:
· all councils
· medium-growth urban areas
· high-growth urban areas.
The final section outlines the Government’s intentions to work with local authorities on implementation of the NPS-UDC.
This guide should be read with the NPS-UDC and other documents available on the Ministry for the Environmentwebsite.
The intention is to update this guide following feedback on its clarity and usefulness.
Role of a national policy statement
A national policy statement provides direction to local authorities and other decision-makers under the RMA on matters of national significance relevant to achieving the purpose of the RMA. A national policy statement sets objectives from a national perspective and identifies policies to achieve those objectives. These objectives and policies must then be recognised and responded to by decision-makers, such as local authorities, in their policy statements and plans prepared under the RMA. A national policy statement cannot direct decisions made under other legislation.
National Policy Statement on Urban DevelopmentCapacity
In many of New Zealand’s growing urban areas, the supply of housing has not kept up with demand. This has contributed to high and rapidly increasing home prices as well as housing affordability challenges and overcrowding. Rapidly increasing house prices have national as well as local consequences. They drive inequality, put pressure on Government expenditure on housing assistance and inflate interest rates and exchange rates. Local authority planning should provide enough opportunities for development to meet the housing and business needs of people and communities – both current and future. To address this, the NPS-UDC directs decision-makers under the RMA to:
· put greater emphasis on enabling change and development when making decisions about urban development
· provide sufficient urban development capacity to support housing and business growth
· ensure that planning processes facilitate urban development.
The NPS-UDC is part of a comprehensive, longer term programme of national direction under the RMA. The Government’s Forward Agenda provides an updated list of priorities for national direction and is available on the Ministry for the Environment’s website. Government understands that local authorities will be required to implement a range of national direction tools simultaneously, and, in recognising this, it intends to support local authorities to implement them.
The NPS-UDC is one of a number of initiatives designed to improve housing supply and affordability, including extending and amending the Housing Accords and Special Housing Areas Act 2013; amendments to the Building Act 2004 and the Construction Contracts Act 2002; as well as development of the future housing infrastructure fund and urban development legislation.
Overview of the requirements
The NPS-UDC is made up of objectives and policies which are grouped as follows:
A outcomes for planning decisions
B evidence and monitoring to support planning decisions
C responsive planning
D coordinated planning evidence and decisions.
Policies in these four groups apply to different urban areas according to their size and population growth. The more challenging policies are targeted at local authorities experiencing higher levels of growth, and avoid imposing unnecessary costs on others. The following section explains how this targeted system works.
Which policies apply to my local authority and when?
The NPS-UDC targets different policies to particular local authorities based on whether or not they have all or part of a high- or medium-growth urban area within their district or region. These area are defined below.
A ‘high-growth urban area’ is any urban area (as defined by Statistics New Zealand in 2016) that:
has either:
· a resident population of over 30,000 people according to the most recent Statistics New Zealand urban area resident population estimates
or
· at any point in the year a combined resident population and visitor population of over 30,000 people, using Statistics New Zealand urban area resident population estimates
and
· in which the resident population of that urban area is projected to grow by more than 10% between 2013 to 2023, according to the most recent Statistics New Zealand medium urban area population projections.
A ‘medium-growth urban area’ is any urban area (as defined by Statistics New Zealand in 2016) that:
· has a resident population of over 30,000 people according to Statistics New Zealand urban area resident population estimates
and
· in which the resident population of that urban area is projected to grow by between 5% and 10% between 2013 to 2023, according to the most recent Statistics New Zealand medium urban area population projections.
These definitions are transitional definitions and will be reviewed no later than 31 December 2018.
As well as targeting particular policies to particular local authorities, these definitions also indicate when neighbouring local authorities should work together. This is because the definitions useStatistics New Zealand’s urban area classification, which are areas of contiguous settlement that approximate urban labour and housing markets, and often cross local authority boundaries.
To be clear, however, the NPS-UDC policies should not just be applied to the area within the geographic boundaries of Statistics New Zealand’s urban areas. Local authorities can build on joint analysis and strategic planning (which many local authorities are already undertaking) that may cross local authority boundaries. Existing examples include the Greater Christchurch Urban Development Strategy, Heretaunga Plains Urban Development Strategy, SmartGrowth, Future Proof, and Upper North Island Strategic Alliance.
Statistics New Zealand review and revisions
The high- and medium-growth urban area definitions are based on urban areas as defined by Statistics New Zealand in 2016. Statistics New Zealand is currently reviewing its urban–rural classification and boundaries, and decisions on new urban areas are expected by the end of 2017, with maps published early in 2018. This urban–rural classification review will not affect the NPS-UDC until the end of 2018, when government will also review the NPS-UDC high- and medium-growth urban area definitions.
The high- and medium-growth urban area definitions in the NPS-UDC also use the most recent Statistics New Zealand population projections for the 2013 (base) to 2023 period. Statistics NewZealand will be revising its urban area population projections by September 2017. It is likely that some urban areas will be newly defined as high- or medium-growth with these revisions.[1] Government will notify the local authorities likely to be affected by this revision about this possibility in early 2017, and will invite them to participate in preparatory work to meet the relevant NPS-UDC policy requirements. Local authorities newly defined as high or medium growth will also have later timeframes to meet these requirements.
Table 1 sets out the current high- and medium-growth urban areas and corresponding local authorities, the policies that apply to them and the timeframes for completing policy requirements.
An Introductory Guide to the National Policy Statement on Urban Development Capacity 2016 3
Table 1: Which objectives and policies apply to which councils and when
Area / Councils / Objectives and policies / Timeframes /All councils
All / All councils / All objectives
PA1: Sufficient development capacity in the short, medium and long term
PA2: Other infrastructure required to support urban development
PA3: Provide choice; promote efficient use of land and infrastructure; limit adverse effects on competition
PA4: Take into account the benefits and costs of urban development at a national, interregional, regional, district and local scale / Immediate and ongoing
Immediate and ongoing
Immediate and ongoing
Immediate and ongoing
Immediate and ongoing
Medium-growth urban areas (subject to change as population projections are revised)
New Plymouth / New Plymouth District, Taranaki Region / As above plus:
PC1–2: Provide an additional margin of feasible development capacity
PC3: Respond when development capacity is insufficient
PC4: Use all practicable options to provide development capacity
PD1–2: Work with other local authorities and infrastructure providers on housing and business assessment and to agree development capacity
PB6: Monitor market indicators
PB7: Use price efficiency indicators
PB1–5: Produce a housing and business development capacity assessment / Immediate and ongoing
Immediate and ongoing
Immediate and ongoing
Immediate and ongoing
1 June 2017
31 December 2017
31 December 2018
Nelson / Nelson City, Tasman District
Kapiti / Kapiti Coast District, Greater Wellington Region
Palmerston North / Palmerston North City, Horizons Region
Wellington / Wellington City, Porirua City, Lower Hutt City, Upper Hutt City, Greater Wellington Region
High-growth urban areas (subject to change as population projections are revised)
Auckland / Auckland Council / As above, plus:
PD3–4: Work with neighbouring local authorities and infrastructure providers to agree minimum targets and future development strategy
PB1–5: Produce a housing and business development capacity assessment
PC5–11: Set minimum targets in plans
PC12 – PC14: Future development strategy / Immediate and ongoing
31 December 2017
31 December 2018
31 December 2018
Tauranga / Tauranga City, Western Bay of Plenty District, Bay of Plenty Region
Hamilton / Hamilton City, Waipa District, Waikato District, Waikato Region
Queenstown / Queenstown Lakes District, Otago Region
Christchurch / Christchurch City, Waimakariri District, Selwyn District, Environment Canterbury Region
An Introductory Guide to the National Policy Statement on Urban Development Capacity 2016 9
2 Requirements of all local authorities
Objectives
The objectives outline the high-level outcomes that the NPS-UDC policies aim to achieve. The objectives also relate directly to the national significance statement and to achieving the purpose of the Resource Management Act 1991 (RMA), particularly through enabling people and communities to provide for their social, economic, cultural and environmental wellbeing. For example, objective:
· OA1 explicitly recognises the need for urban environments that provide for social, economic, cultural and environmental wellbeing
· OA2 recognises that sufficient opportunities for development for both housing and business are needed to provide for all aspects of people’s and communities’ wellbeing
· OA3 recognises that people’s and communities’ needs will change over time, and that urban environments need to change with them.
Definitions
The following explains key definitions of words used in objectives and policies throughout the NPS-UDC. The definitions apply to words used in the policies that apply to all local authorities and that only apply to medium- and high-growth urban areas.
Decision-maker
means any person exercising functions and powers under the Act [RMA].
The objectives in the NPS-UDC and policies PA3 and PA4 apply to decision-makers when they are making planning decisions that affect an urban environment. In this context, decision-makers would include elected officials and consenting officers, as well as other decision-makers such as independent hearings panels and the Environment Court.
Demand
means:
In relation to housing, the demand for dwellings in an urban environment in the short, medium and long-term, including:
a) the total number of dwellings required to meet projected household growth and projected visitor accommodation growth;
b) demand for different types of dwellings;
c) the demand for different locations within the urban environment; and
d) the demand for different price points
recognising that people will trade off (b), (c) and (d) to meet their own needs and preferences.
In relation to business land, the demand for floor area and lot size in an urban environment in the short, medium and long-term, including:
a) the quantum of floor area to meet forecast growth of different business activities;
b) the demands of both land extensive and intensive activities; and
c) the demands of different types of business activities for different locations within the urban environment.
The definition of ‘demand’ is core to the definition of sufficient development capacity, and in the policies requiring demand to be assessed as part of the evidence and monitoring to support planning decisions (PB1 and PB2).