Tewa Banks vaults final hurdle
Tewa Banks land, seen from a hot air balloon. Photo: QLCHT
A major new affordable housing development in Queenstown Lakes is a step closer after rules were changed around the land it will be built on.
Queenstown Lakes Community Housing Trust (QLCHT) wants to build 68 houses on the 3.68-hectare site off Jopp Street, Arrowtown.
Houses will be sold for between $350,000 and $400,000, in a town where the median price is over $1.7 million, while others will be made available for long-term rentals and senior housing.
But the trust was hamstrung over finance for the $50 million project.
The former council land was sold to the trust for $1 in 2019, having been previously used as effluent treatment ponds. That meant the land was designated for public utility, preventing its use as financial security.
QLCHT has applied to Te Tūāpapa Kura Kāinga – Ministry of Housing and Urban Development (HUD) for an interest free loan under the Progressive Home Ownership fund to progress the development, subject to the land being available as security.
It also has finance lined up from ASB Bank.
At Thursday's full council meeting, councillors voted to remove the designation and replace it with a registered covenant requiring the land to only ever be used for the purpose of providing affordable housing.
Queenstown Lakes District Mayor Glyn Lewers says: "With a well‐documented shortage of affordable housing in our district, we as a council felt strongly about removing this barrier for QLCHT so that development for much needed housing can continue at pace."
The covenant includes first right of refusal for council to buy back the land if sold, plus a right for council to buy back the land if the covenant is breached.
Lewers says the council is comfortable with the level of risk associated with redesignating the land.
QLCHT Chief Executive Julie Scott said she is delighted with Council’s decision.
"Having broken ground on the development site at Jopp Street last September, we are very pleased the project can continue as originally planned this year. With earthworks nearly complete, we’re now in a position to appoint a civil works contractor, confirm finance and continue with construction of these 68 homes."
There are 870 households on the trust's waiting list.
The Tewa Banks development is one of a range of initiatives council is working on in its focus on ensuring affordable housing in the district, including formalising inclusionary housing measures.
