Appendix 3: Options for Notification and Funding Infrastructure
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The table below presents options for changes to the RMA and the Building Act to require the relevant council be notified of a granny flat. This would trigger development contributions and housing records when a granny flat is built without needing a consent(s).
Option 1: Via the RMA
Create a ‘Permitted Activity Notice’ (PAN)[1] tool to record a new granny flat that didn’t need resource consent.
This would be a new tool under the RMA and would require change to the legislation.
This option would require an amendment to the Local Government Act 2002 (LGA02).
Benefits
- Creates a council record of the new granny flat, involving less process, time and cost than a resource consent would.
- Provides an opportunity for a development contribution trigger.
Risks/costs
- Introduces an administrative process for granny flats, not currently required as they may already be a permitted activity (so do not need resource consent) in most district plans.
- A PAN records the granny flat when it is proposed but does not inform the council when it has been built. The council will not know when to plan increased infrastructure capacity for or charge rates etc.
- Administrative charges are likely to be required by councils for PANs as council resource would be required in their assessment and filing. As this is a new tool.
- Risks that a PAN is not applied for and therefore the requirement for a development contribution is not triggered.
- Would require legislative change to the RMA which adds to the complexity of the resource management system.
Option 2: Via the Building Act
Under the proposed Building Act option a tool similar to a Project Information Memorandum (PIM)[2] is proposed to be required before construction. This is intended to support appropriate design and create a record of the building, involving less process, time and cost than a building consent would.
Development contributions could be required at this point.
This option would require an amendment to the LGA02.
As part of the proposed Building Act option, notification to the council is proposed once work has been completed.
Benefits
- Creates a council record of the new granny flat, involving less process, time and cost than a building consent would.
- Provides an opportunity for a development contribution trigger.
- Having the council record provides greater assurance to current and future owners (and potentially banks and insurers).
Risks/costs
- Councils generally charge in the order of $300-$700 per PIM for administration and assessment.
- Risk that a PIM is not applied for and therefore the requirement for a development contribution is not triggered.
- Enforcement options for paying development contributions would rely on fines only, which may be of limited effectiveness compared to consent-based options.
Footnotes
[1] PAN’s were established in the Natural and Built Environment Act, which has been repealed. The regulatory design and regulatory impact analysis behind the repealed act can be revisited for the granny flat proposal.
[2] Under the Building Act, a PIM provides information about land and the requirements of other Acts that might be relevant to proposed building work.