Developers are split over the Queenstown Lakes District Council's new affordable and community housing plan change, submissions received by the council show.
The council has received 29 submissions - 10 in support and 19 opposed - QLDC senior policy analyst Scott Figenshow said in a statement yesterday.
Of those, three developers - Brecon Street Partnership Ltd, Mount Cardrona Station Ltd and City Pacific Ltd Lakeview - expressed support and would be providing affordable housing contributions as part of their developments, he said.
However, Jacks Point Ltd (the first developer to volunteer an affordable housing contribution), Five Mile Holdings Ltd, H and J Smith Holdings Ltd, and Foodstuffs (developers of the planned Pak'N Save supermarket) were among those to oppose the plan change.
Five Mile's submission, viewed by the Otago Daily Times yesterday, argued the plan change was ‘‘unlawful'' and should be withdrawn.
Providing affordable housing was not the purpose of the Resource Management Act, and requiring developers to contribute to ease pressures associated with development was also based on an ‘‘erroneous'' legal understanding of the RMA, the submission argued.
The plan change, if implemented, would ultimately drive housing prices up, by increasing compliance costs for developers and reducing their profit margins.
Additional costs would have to be passed on to consumers, and ‘‘the result will be that overall housing prices will rise'', the submission said.
Foodstuffs' submission acknowledged affordable housing was ‘‘a significant issue'' but argued there was no research showing development itself influenced home affordability.
‘‘Development is not the cause of growth, but rather follows and responds to growth trends,'' it said.
Using the district plan to force developers to transfer land to the council was also beyond the powers of the RMA, as well as an inappropriate use of the district plan, it said.
A submission by Ladies Mile Partnership backed the aims, but warned adding affordable housing to existing high-value residential areas could cause resentment.
Instead, the construction of new village developments in greenfield areas next to existing urban areas - such as Lake Hayes Estate - should be investigated further, it argued.
The plan change, publicly notified last year, aimed to provide opportunities for low and moderate income households to own homes.
Mr Figenshow said further submissions could still be made. A public hearing would follow.
