Find out about development and reserve contributions and whether you will need to pay them.
Property developers and new home builders are adding value to our city and helping us to grow. Their activities often require us to invest in new infrastructure, recreational facilities and community services.
To help cover the costs of these investments (and relieve other ratepayers from paying for them), we charge:
- development contribution fees which go towards paying for growth-related infrastructure such as water, wastewater, stormwater, transport and roading services
- reserves fees which go towards expanding our network of parks, reserves, playgrounds and sports grounds.
These fees apply to anyone:
- subdividing land and creating new lots, or selling part of a lot (often the backyard) to enable another house to be built
- building another house on a lot that already has one
- building a retail, commercial or industrial (non-residential) building
- expanding the floor area of a non-residential building by more than 10m2
- changing the use of a non-residential building, but only if that change is accompanied by a more intensive use of the building. For example, converting a warehouse to offices would mean a significant increase in traffic and water/wastewater use
- using a residential building for non-residential purposes
- altering or adding to an existing house or flat and in doing so creating a separate, self-contained dwelling
- connecting new water, wastewater and stormwater services. This typically applies when someone plans to sublet or sell part of a non-residential building that doesn’t yet have these services.
- You won’t have to pay the fee if you’re doing additions or alterations to your home, or if you’ve already paid it as part of the fee for a resource consent.
Development contributions are calculated differently depending on:
- whether the property is residential or non-residential
- which part of the city the property is in
- how large the new or additional floor area is
- for non-residential properties whether the development is for retail, commercial or industrial purposes
If you would like to get an idea of the development contributions payable try our calculator. For non-residential development you will need the gross floor area and the new impervious area. For residential development you will need the number of units and their size.
Development Contributions calculator 2022/2023 (to be used for applications submitted before 1 July 2023)
Development Contributions calculator 2023/2024 (to be used for applications submitted after 30 June 2023)
What happens if I disagree with the Development Contribution charge?
If you have received a notification of a development contribution charge and disagree with the assessment, the following options are available under the Development and Financial Contributions Policy – section 59 to 70 (Review Rights).
Using the reconsideration request process, developers can formally require Council to reconsider its assessment of development contributions for a development. Developers can make reconsideration requests where they have grounds to believe that:
- Council incorrectly calculated or assessed the development contribution levied under the policy; or
- Council has incorrectly applied the policy; or
- the information Council used to assess the development against the policy, or the way that Council recorded or used that information when requiring a development contribution, was incomplete or contained errors.
To seek a reconsideration, the developer must:
- lodge the reconsideration request within 10 working days of receiving the development contribution notice by emailing it to Development.Contributions@huttcity.govt.nz;
- use the Development Contribution reconsideration request form and supply any supporting information with the form;
- pay the reconsideration fee at the time of application, as set out in Council’s Schedule of Fees and Charges.
The objections process is more formal; it allows developers to seek a review of the Council’s decision. An application for reconsideration does not prevent the applicant from also filing an objection under section 199C of the Local Government Act 2002 (LGA).
Objections may only be made on the grounds that Council has:
- failed to properly take into account features of the development that, on their own or cumulatively with those of other developments, would substantially reduce the impact of the development on requirements for community facilities in the district or parts of the district; or
- required a development contribution for community facilities not required by, or related to, the development, whether on its own or cumulatively with other developments; or
- required a development contribution in breach of section 200 of the LGA; or
- incorrectly applied the policy to the development.
To pursue an objection, the developer must:
- lodge the request for an objection within 15 working days of receiving notice to pay a development contribution, or within 15 working days of receiving the outcome of any request for a reconsideration by emailing it to Development.Contributions@huttcity.govt.nz;
- use the Development Contribution objection lodgement form and supply any supporting information with the form; and
- pay a deposit as set out in Council’s Schedule of Fees and Charges.
Reserve contributions are up to 7.5% of the value of a new allotment created by a subdivision.
- for rural lots up to a maximum of $5,000
- for residential lots up to a maximum of $10,000
- there is no maximum for non-residential lots.