Hamilton City Council Plan Change 12

Why is Plan Change 12 happening?

Through Plan Change 12 (“PC12”) Hamilton City Council (“HCC”) will implement mandatory rules for building density set by the National Policy Statement on Urban Development (“NPS-UD”) and the Resource Management (Enabling Housing supply and Other Matters) Amendment Act 2021 (“Enabling Housing Act”).

The NPS-UD and Enabling Housing Act require cities like Hamilton, Auckland, Christchurch, Tauranga and Wellington (grouped as Tier 1) to provide for higher density housing across the city. Essentially, these new rules will encourage cities to build up, rather than out in an attempt to bring homes closer to shops, jobs and public transport. To understand the Enabling Housing Act more – read our previous article here:
https://www.harknesshenry.co.nz/2021/11/02/duplexes-without-resource-consent/

Waikato District Council and Waipa District Council, will also be making similar changes because they are also growth areas that are covered by the legislation.  While the increased density changes are mandatory, the Councils have to consider whether there are any qualifying matters that would limit the expected density outcomes.  The qualifying matters will be different for each Council, for example: heritage areas; natural hazards; national policy direction etc.

HCC had the option to apply the higher density rules to the whole city but has considered there are qualifying  matters  that will prevent the rules from applying across the whole city (i.e., increasing density will need a resource consent in some residential areas). The qualifying matters for Hamilton are the impact of density on the Waikato River and location of heritage areas.  Rules introducing restrictions on development are already notified in PC 9 for heritage and are now introduced into the District Plan through PC12 to protect effects on the Waikato River.

The general density rules under the Enabling Housing Act mostly take effect from 20 August 2022, but because HCC is modifying what is permitted via PC12, the rules may not come into effect until late 2023-2024.

What changes will Plan Change 12 make?

Central city

Hamilton’s central city (“CBD”) is where the most intensification will be allowed under PC12. While unlimited building heights are already allowed in the central city, HCC is proposing to extend the intensification area and allow increased densities in a walkable “catchment” around the city. Walkable catchments are not defined in the legislation leaving  each Council to decide what its walkable catchment may be.[1]

The main changes in the walkable catchment surrounding the CBD will be high density housing and will include:

• Up to three homes, that are up to three storeys high, permitted without an infrastructure assessment and will not require resource consent.
• Residential buildings higher than six storeys in the CBD and up to six storeys in parts of Whitiora, Hamilton East and Te Rapa will be permitted, and higher with resource consent.
• Unlimited heights across all areas of the high density zone, with resource consent.
• These will be subject to green policies (permeable surfaces, enhancing landscape and a rainwater re-use tank) and financial contributions – as well as new design controls (document is over 100 pages long).

Restrictive overlay

PC12 introduces a Proposed Infrastructure Capacity Overlay that will apply to much of the city that is outside the CBD intensification area. This is to avoid adverse effects on the Waikato River. The restrictive overlay will still enable increased density, but will require developers to do an infrastructure capacity assessment. The restrictive overlay will apply to:

• Business Zones;
• General residential zones;
• Medium and some High Density zones and
• Greenfield locations (where consented).

The following areas listed are not affected by the new density rules and therefore the restrictive overlay does not apply. Resource consents may still be required for residential activities in these zones depending on the current District Plan rules:

• Industrial zones;
• Large institutional sites;
• Future urban zones; and
• Undeveloped greenfield areas

What does this mean for Medium Density Residential Zone within the restrictive overlay?

Medium Density Residential zones apply in suburbs further from the CBD  (that are within 400m of a suburban centre)  including Chartwell, Thomas Road,  Five Cross Roads, Clyde Street East, Hamilton East, Nawton, Dinsdale, Glenview and Frankton.

• 3 residential units having an average size of 150m² per unit will be permitted on sites that comply with water efficiency standards.
• 4 or more residential units and/or a site with an average of less than 150m² per unit that does not comply with water efficiency standards will become a restricted discretionary activity requiring resource consent.HCC will have discretion regarding the infrastructure capacity assessment, urban design and related matters.
• Up to 5 storeys with resource consent and a full infrastructure assessment.

What does this mean for development in the General Residential Zone within the new restrictive overlay area?

• 3 residential units with an average size of 200m² per unit site will be permitted where the development also complies with new water efficiency standards – (currently it is 2 units to 400m²).
• 4 or more residential units and/or a site with an average of less than 200m² per unit that does not comply with water efficiency standards will become a restricted discretionary activity requiring resource consent. HCC will have discretion to grant or decline consent in light of  the infrastructure capacity assessment, urban design and related matters.

If you are in the General Residential zone and do not have the restrictive overlay that requires an infrastructure capacity assessment, your property will be subject to the Medium Density Residential Standards. Those standards have already taken legal effect. In summary: up to 3 residential units are permitted on site provided there is only 50% building coverage and they are no more than 3 storeys. There are some specific standards that apply including: setback requirements for yards; outdoor living space areas and heights.

Subdivision will still require resource consent as a controlled activity.

Financial Contribution

PC12 also introduces a provision enabling HCC to levy a financial contribution, in addition to existing development contributions. The financial contribution is looking to be $4,800 per unit (3 bedroom house) to fund activities which provide better outcomes for Hamilton.

What next?

PC12 is complex and there is inconsistent information between central government and local councils.

Members of the public are invited to give feedback on PC 12 by 30 September 2022.

Most of the new rules introduced by PC12 will not come into effect until the full plan change process is completed and decisions are made. This is likely to be late 2023 or early 2024.

If you wish to make a submission on PC12 or have any questions about its impact on your property, please get in touch with a member of our resource management team including Joan Forret and Charlotte Muggeridge.

[1] Ministry for the Environment (2022) “Understanding and implementing the intensification policies of the NPS-UD 2020” (Wellington: Ministry for the Environment) at 23.

This article is current as at the date of publication and is only intended to provide general comments about the law. Harkness Henry accepts no responsibility for reliance by any person or organisation on the content of the article. Please contact the author of the article if you require specific advice about how the law applies to you.