National Policy Statement on Urban Development Capacity

Transcription

1 National Policy Statement on Urban Development Capacity Responsive planning - Guide on setting minimum targets for sufficient feasible development capacity for housing

2 This document may be cited as: Ministry for the Environment National Policy Statement on Urban Development Capacity: Responsive planning - Guide on setting minimum targets for sufficient feasible development capacity for housing. Wellington: Ministry for the Environment. Published in December 2017 by the Ministry of Business, Innovation and Employment and the Ministry for the Environment Manatū Mō Te Taiao PO Box 10362, Wellington 6143, New Zealand ISBN: Publication number: ME 1333 Crown copyright New Zealand This document is available on the Ministry for the Environment website:

3 Contents 1. Purpose and scope of this guide Purpose Scope 5 2. Intent of the minimum targets policies 5 3. Information that determines the targets The targets relate to an agreed geographic area The targets relate to the identified demand for additional dwellings 8 4. Factors to consider when setting minimum targets The targets are based on the calculation of demand and the associated margin for the short to medium and long term The targets refer to a number of dwellings There is a medium-term target and a long-term target Minimum targets are set for each of the relevant local authorities Proposed wording for the minimum targets Timing and process for implementing and updating targets Timing for inclusion of minimum targets The targets are to be incorporated without using Schedule The targets will need to be updated 12 Figures Figure 1: Summary of NPS-UDC policies 7 Guidance on setting minimum targets 3

4 1. Purpose and scope of this guide 1.1 Purpose This guide relates to the requirements in the National Policy Statement on Urban Development Capacity (NPS-UDC) for local authorities to set targets in their regional policy statements and district plans (policies PC5 PC 11). Local authorities that have part or all of a high-growth urban area in their district or region ( high-growth local authorities ) are required to set minimum targets in their relevant regional policy statement or district plan by 31 December Local authorities that have part or all of a medium-growth urban area in their district or region ( medium-growth local authorities ), are also encouraged to set targets. This guide clarifies the information sources, form and timing of the minimum targets that are required to meet the NPS-UDC policies. The minimum target policies state: PC5: Regional councils shall set minimum targets for sufficient, feasible development capacity for housing, in accordance with the relevant assessment under policy PB1 and with policies PA1 and PC1 or PC2, and incorporate these minimum targets into the relevant regional policy statement. PC6: A regional council s minimum targets set under policy PC5 shall be set for the medium and long term, and shall be reviewed every three years. PC7: When the relevant assessment required under policy PB1 shows the minimum targets set in the regional policy statement are not sufficient, regional councils shall revise those minimum targets in accordance with policies PC5, and shall incorporate these revised targets into its regional policy statement. PC8: Regional councils shall amend their proposed and operative regional policy statements to give effect to policies PC5 to PC7 in accordance with section 55(2A) of the Act without using the process in Schedule 1 of the Act. PC9: Territorial authorities shall set minimum targets for sufficient, feasible development capacity for housing, as a portion of the regional minimum target, in accordance with the relevant assessment under policy PB1, and with policies PA1, PC1 or PC2, and PD3 and incorporate the minimum targets as an objective into the relevant plan. PC10: If a minimum target set in a regional policy statement is revised, the relevant territorial authorities shall also revise the minimum targets in their plans in accordance with policy PC9. PC11: Territorial authorities shall amend their relevant plans to give effect to policies PC9 and PC10 in accordance with section 55(2A) of the Act without using the process in Schedule 1 of the Act. Guidance on setting minimum targets 4

5 This guidance also clarifies how local authorities are expected to collaborate and coordinate when setting targets. The NPS-UDC states: PD3: Local authorities that share jurisdiction over an urban area are strongly encouraged to collaborate and cooperate to agree upon: a) The specification of the minimum targets required under PC5 and PC9 and their review under policies PC6, PC7 and PC10. This guide is consistent with, and expands on, the policy intent behind the NPS-UDC. It is not part of the NPS-UDC, and is not legal advice. It should be read alongside the Introductory Guide to the National Policy Statement on Urban Development Capacity 2016, November 2016; the Guide on Evidence and Monitoring, June 2017; the Guide for producing a Future Development Strategy, November 2017, and other related information available on the Ministry for the Environment s website. 1.2 Scope This guide focuses on matters relating to the setting and inclusion of targets. The guide has five parts: the intent of the minimum targets policies information that determines the targets factors to consider when setting the targets proposed wording for the minimum targets timing and process for implementing and updating the targets. This guide does not cover the nature of the regional policy statement and district plan changes required to give effect to the minimum targets. This guide only describes what is required by the NPS-UDC. In some cases, although it is not specifically required by the NPS-UDC, local authorities may find it beneficial to develop more detailed targets, or targets that apply to more specific areas. 2. Intent of the minimum targets policies Some urban areas in New Zealand are growing quickly and the demand for housing is outstripping supply. The NPS-UDC recognises the national significance of urban environments and the need to provide sufficient feasible development capacity. Fast growing urban areas change the form and function of communities and there is often resistance from existing communities to the change. One of the key purposes of the NPS-UDC is to make clear that local authorities must provide sufficient feasible opportunities to meet the needs of growing communities. This national direction helps direct the discussion with communities at a regional and district level away from how much growth should be provided for, to focus on how it should be Guidance on setting minimum targets 5

6 provided for. One of the key mechanisms provided by the NPS-UDC to achieve this is the use of regional and district minimum targets for housing development capacity. The minimum targets are intended to clearly show the level of demand for housing needed in the medium and long term, at a regional and district level. Minimum targets for sufficient, feasible development capacity for housing are to be set for all high-growth urban areas, and encouraged for medium-growth urban areas (policies PC5 to PC11). The intent behind minimum targets is to: ensure local authorities focus on the minimum amount of housing development capacity required to meet the projected demand set targets based on projections for demand and additional margins, in the medium and long term encourage local authorities to collaborate and cooperate to agree their minimum target for housing development capacity set the minimum amount of housing development capacity that must be provided by the activity or zone-based RMA policies and methods. To achieve this intent, the minimum targets policies require that local authorities: set the minimum housing development capacity that must be achieved for an agreed geographic area 1 use information on the projected demand for dwellings, obtained through the housing and business development capacity assessments. integrate the additional margin for feasible development capacity, required under policies PC1 and PC2, so that targets are consistent with the concept that not all development capacity will be developed 2 reflect the development capacity identified by future development strategies, required under policies PC12 to PC14. The diagram below shows the intended relationship between key requirements of the NPS- UDC. 1 The agreed geographic area refers to the geographic area of focus and is described in more detail in section 3.1 of this guide. 2 See Introductory guide to the National Policy Statement on Urban Development Capacity 2016 for an explanation of additional margins of development capacity. Guidance on setting minimum targets 6

7 Figure 1: Summary of NPS-UDC policies Minimum targets do not address how or where development capacity in a region or district will be provided, or identify what plan changes are required to implement the targets. They do not address the level of any shortfall in future development capacity compared with current provisions. These concerns are addressed through implementing other aspects of the NPS- UDC, including: the housing and business capacity assessments (policies PB1 to PB7); other responsive planning policies (policies PC1 to PC4); and development of a future development strategy (policies PC12 to PC14) Information that determines the targets 3.1 The targets relate to an agreed geographic area The NPS-UDC uses Statistics New Zealand s urban areas to target policies to particular local authorities and to encourage them to work together. However, the NPS-UDC also states that The application of these policies is not restricted to the boundaries of the urban area. Therefore, local authorities can decide for themselves the geographic area that the targets relate. To ensure the targets are consistent with the projected demand for dwellings included within the housing and business development capacity assessment, the area that they relate should be the same as the geographic area of focus used to generate the projections of demand identified in that assessment. The Guide on evidence and monitoring discusses in more detail the factors that should be considered in determining the geographic area of focus. 3 See Guidance on setting minimum targets 7

8 The area that the targets relate is referred to throughout this guide as the agreed geographic area. 3.2 The targets relate to the identified demand for additional dwellings The minimum targets must be set in accordance with the demand for housing assessment included within the housing and business development capacity assessment required under policy PB1. The assessment of the demand for housing will identify the projected number of dwellings required in the short to medium and long term in the agreed geographic area. The assessment will also identify the demand within each local authority with jurisdiction over part of the area. The demand assessment will factor in demand from residents, visitors and migrant workers, as well as projected population growth and changes in household size Factors to consider when setting minimum targets 4.1 The targets are based on the calculation of demand and the associated margin for the short to medium and long term Minimum targets shall reflect the projected number of dwellings required in the short to medium and long term, identified in the relevant housing and business development capacity assessment, along with the relevant additional margin for development capacity, as required under policies PC1 and PC2. The relevant margin is an additional margin of feasible development capacity 5 over and above projected demand of at least: 20 per cent in the short and medium term (up to 10 years), and 15 per cent in the long term (20 to 30 years). One high-level minimum target for each time period, based on projected demand plus a development margin, is required to ensure the regional policy statements and district plans meet the requirements to set targets. The targets are based on projected demand and are not affected by the supply or sufficiency calculations of existing housing and business land development capacity 6. The sufficiency of different types of housing and business land is addressed in other parts of the housing and business development capacity assessments, the future development strategies required under policies PC12 PC14 and the planning responses required under PC1 PC4. 4 Guidance on assessing demand for housing is outlined in section 2 of the Guide on Evidence and Monitoring. 5 See pages of the Introductory guide to the National Policy Statement on Urban Development Capacity 2016 for an explanation of additional margins of development capacity. 6 See page 44 of the Guide on Evidence and Monitoring for more explanation about assessing sufficiency of housing and business land. Guidance on setting minimum targets 8

9 This guide only describes what is required by the NPS-UDC for minimum targets. In some cases, though it is not required by the NPS-UDC, councils may find it beneficial to develop more detailed targets, or targets that apply to specific areas or housing types. 4.2 The targets refer to a number of dwellings The minimum targets refer to the development capacity for housing that is required to be enabled, rather than the amount of housing that is built in any given period. To achieve the policy intent, the minimum targets should be expressed in terms of the number of dwellings required to meet demand. 7 There may be several ways to express other future development goals in local authority plans and some plans currently use measures such as density targets, or a target expressed in terms of years of development capacity provided for. Local authorities may find it beneficial to develop more targets focused on other development goals or specific housing typologies; however, these are not mandatory to meet the NPS-UDC requirements. 4.3 There is a medium-term target and a long-term target Policy PC6 provides that a regional council should set minimum targets under policy PC5 for the medium and long term. The NPS-UDC defines the short term as within the next three years; the medium term as between three and 10 years; and the long term as between 10 and 30 years. It is recommended the minimum medium-term target includes the short-term projected demand and the 20 per cent additional margin; ie, a minimum target covering the first 10 years. Aligning with the NPS-UDC definition of the long term, the long-term minimum target should cover the 20-year period from year 10 to year 30, and the 15 per cent additional margin. An overall target, covering the full 30-year period, can be seen as the sum of the minimum target for the medium and long term. Further information on how the medium- and long-term targets could be presented is covered below in section 4.6. To ensure the minimum targets remain relevant and influential, the specific period they cover must be stipulated. That is, the minimum target for the medium term is for 10 years from the base year of the housing and business development capacity assessment and the long term is for the 20 years after that. When the targets are revised in the future the dates for the medium and long term should be adjusted to reflect the date of the revision. Policy PC9 requires that territorial authorities set targets representing the share of the regional minimum targets. Therefore, the guidance about how the medium term and long-term targets can be calculated at a regional level, also apply to the minimum targets at a district level. 7 For the purposes of this guide the term dwelling is used in its plain English sense a house, flat or other place of residence (Oxford Dictionary) as opposed to a defined term (for instance, as it may be defined in any particular district plan). Guidance on setting minimum targets 9

10 4.4 Minimum targets are set for each of the relevant local authorities The NPS-UDC intends the minimum targets set by the regional council are apportioned between the territorial authorities. Each territorial authority needs to also incorporate the apportioned targets as an objective in their plan. To achieve the policy intent, the local authorities that share the jurisdiction over the agreed geographic area of focus, are strongly encouraged to work together on the housing and business development capacity assessments that identify the minimum targets, and collaborate and cooperate to agree upon the specification of the minimum target for each district. The aggregated territorial authorities minimum targets should add to at least the minimum targets at the regional level. 5. Proposed wording for the minimum targets Regional councils must incorporate minimum targets into their regional policy statement (policy PC5). Regional councils have the flexibility to choose where in their regional policy statements they locate the targets, and in what form. We recommend they are included as regional objectives to ensure the targets are clearly tied to the relevant regional and district plan content. For territorial authorities, a target is required as an objective by the NPS-UDC, and it would be well placed within a district-wide or strategic growth section of a district plan. The specific zone or activity-based issues, objectives and policies of the district plan can then support the implementation of the strategic objective. The minimum targets in both regional policy statements and district plans should be framed so that they: state the minimum number of dwellings to be enabled and made feasible to develop state the years covered by the minimum targets (medium and long term) relate to a specified geographic area of focus. We recommend local authorities adopt a short statement setting out the parameters for the minimum targets, associated with a table which clearly identifies them. Best practice would be to provide a map showing the area covered by the targets. The agreed geographic area may not cover the whole of the local authority catchment areas. A suggested approach for including minimum targets in plans is set out below. While we recommend this format be included in regional policy statements and district plans, local authorities may choose to develop their own contextual material for the minimum targets. Guidance on setting minimum targets 10

11 Objective Minimum targets for sufficient, feasible development capacity for housing For the period 2018 to , the minimum sufficient, feasible development capacity for housing is provided in the area defined, according to the table below: Term Short to medium term Long term 30-year timeframe Up to Minimum targets X dwellings Y dwellings X + Y dwellings 6. Timing and process for implementing and updating targets 6.1 Timing for inclusion of minimum targets Minimum targets must be included in relevant regional policy statements and district plans of high growth local authorities, by 31 December Generally this is one year after the highgrowth councils have completed their housing and business development capacity assessment 10. The minimum targets are relevant to the development of future development strategies as the strategy must set out how the minimum targets will be met. The deadline for high growth local authorities to set their minimum targets is the same as the deadline for completing the future development strategies (by 31 December 2018). So, we recommend that local authorities establish the minimum regional targets as soon as possible after the housing and business development capacity assessment is completed, to enable the future development strategy to set out how the minimum targets will be met. The future development strategy process should not decrease the regional targets from that identified in the demand projection included in the housing and business development capacity assessment. However, the process to develop the future development strategy will socialise and assign ownership of the regional minimum target, and provide a forum for the territorial authorities to work together and agree on the specification of the district target. The aggregated territorial authorities minimum targets need to aggregate up to at least the minimum targets at the regional level. The agreed regional and district minimum targets can then be incorporated into regional policy statements and district plans before the 31 December 2018 deadline. 8 Figures given in italics should be adjusted depending on the time period covered by the particular set of minimum targets. 9 NPS-UDC, page For councils that have part, or all, of a newly classified high growth urban area, the deadline for completing the housing and business development capacity is six months later; accordingly, newly classified high growth urban areas need to include targets only six months after they have completed their housing and business development capacity assessment. Guidance on setting minimum targets 11

12 6.2 The targets are to be incorporated without using Schedule 1 Policies PC8 and PC11 direct local authorities to set minimum targets in regional policy statements and district plans using the process set out in section 55(2A) of the RMA. This means local authorities must insert housing targets directly into the relevant regional policy statement or district plan without using the change process set out in Schedule 1 of the RMA. However, the plan change process set out in Schedule 1 of the RMA will be required for any policy statement or plan changes that are designed to enable the targets to be met. Local authorities should work with their communities through the usual plan change consultation process to decide zones and other regulations that allocate the targeted capacity to different locations and types of housing. 6.3 The targets will need to be updated Under policy PC6 the minimum targets set by regional councils must be reviewed every three years. The housing and business development capacity assessment is also required to be carried out every three years and local authorities will also regularly carry out monitoring of market and price efficiency indicators. Where the current minimum targets are shown not to reflect the projected demand for dwellings included within the reviewed housing and business development capacity assessment or the monitoring, the targets should be revised and incorporated into the regional policy statement (policy PC7). Minimum targets in the district plans should also be updated to reflect the new targets in the regional policy statement. Revised minimum targets can be incorporated into regional policy statements and plans using section 55 (2A) of the RMA, without using the process in Schedule 1 of the RMA (see explanation in section 6.2 above). Guidance on setting minimum targets 12