The number of applications and pre-application enquiries for residential intensification proposals continues to grow. This is a complex and evolving planning environment in Tauranga, with multiple layers of planning instruments and legislation in play.
Of greatest recent significance was the passing of the Resource Management (Enabling Housing Supply and Other Matters) Amendment Act 2011 (‘the Amendment Act’). This introduced a range of changes to both the Resource Management Act (‘the RMA’) and the National Policy Statement on Urban Development (the NPS-UD’), with the changes to the RMA included in the 21 December 2021 update.
Following the changes introduced by the Amendment Act and the number of enquiries we are getting for residential intensification, we thought it was timely to provide a further update following from our October 2021 Planning Panui item, ‘Comprehensively Designed Development and Plan Change 26’. This update is not intended to replace specific pre-application discussions but rather provide a general overview on how the Environmental Planning team are approaching residential intensification proposals in the Suburban Residential Zone.
Further detail is provided below, however, the following are the salient points:
- Plan Change 26 remains on hold, with an update expected in March 2022.
- Weight is being afforded to the Zone Purpose Statement; Objectives; and Policies for the Suburban Residential Zone proposed under PC 26, but only for sites located within the Te Papa Housing Overlay.
- For Suburban Residential Zone sites located outside of the Te Papa Housing Overlay, the operative City Plan provides a pathway for medium density residential development as a Comprehensively Designed Development. No such pathway exists for high density residential development and the likely outcome is that these applications will be refused on the grounds of inconsistency with the Zone Purpose Statement; Objectives; and Policies.
- In the current planning environment, no matter which pathway an intensification proposal follows, there are no live ‘non-notification’ clauses in play. Noting this and recognizing that ‘less than minor’ is a very low threshold, applicants need to be prepared for their application to be processed on a notified basis. Whilst each application in unique, the current pattern is for limited notification.
- We continue to use the draft Residential Outcomes Framework as a guide on Urban Design matters in our decision making. Applicants are strongly encouraged to include an Urban Design Report that has been prepared by a suitably qualified and experienced Urban Design professional and addresses the Residential Outcomes Framework to support applications for intensification projects.
- The changes to the RMA brought about by the Amendment Act, including the Medium Density Residential Standards, will not feature in our decision making until such time as an Intensification Planning Instrument has been notified. This will be no later than 20 August 2022.
Proposed Plan Change 26 – Housing Choice
As many of you are aware, PC 26 was placed on hold in November 2021, following the release of the Resource Management (Enabling Housing Supply and Other Matters) Amendment Bill on 19 October 2021. A full copy of the report to the Commissioners is available, however in summary the primary reason for this was potential misalignment of the scope of PC 26 and the requirements of the Amendment Bill.
Full copy of the report to the Commissioners
PC 26 remains on hold at the time of writing (February 2022), with a further report to the Commissioners on its future currently scheduled for March 2022.
Whilst the rules within PC 26 still have no legal effect, we continue to give weight to the changes to the Zone Purpose Statement; Objectives; and Policies proposed under PC 26 for sites that are located within the Te Papa Housing Overlay. Notwithstanding that PC 26 has not proceeded to hearing and that all provisions are subject to submissions in opposition, we are able to do this for the following reasons in the Te Papa Housing Overlay:
- PC 26 represents a significant shift in policy direction for Tauranga, seeking to address the significant resource management issue of the shortfall in housing and housing affordability in Tauranga.
- The Te Papa Housing Area Overlay has been included in PC 26 to give effect to the very specific direction for residential intensification provided to Tier 1 Urban Environments by the NPS-UD under Policy 3 (clause ‘c’).
- The Te Papa Housing Area Overlay is intended to implement the ‘Te Papa Spatial Plan 2020-2050’ that has been through community consultation and was approved/adopted by Council on 13 October 2020.
Given the infancy of PC 26 and scope of submissions in opposition; the absence of specific direction from the NPS-US for these areas; and that spatial planning exercises (including associated community engagement) have not been undertaken, we are not affording any weight to PC 26 for those sites located outside the Te Papa Housing Overlay.
Residential Intensification in the Suburban Residential Zone Outside of the Te Papa Housing Overlay
For those sites located in the Suburban Residential Zone but outside of the Te Papa Housing Overlay, in the absence of weight being applied to PC 26, the Zone Purpose Statement; Objectives; and Policies of the operative City Plan prevail and direct our decision-making.
Key points to note about the Environmental Planning team’s approach to residential intensification proposals are:
High Density Residential
- Proposals that include a development density exceeding one dwelling per 200m2 of site area will be treated as ‘high density’ residential development as defined by the City Plan.
- High density residential development is not anticipated or supported in the Suburban Residential Zone by the Operative City Plan Zone Purpose Statement; Objectives; and Policies for the Suburban Residential Zone. Such applications will not be supported by staff and the likely outcome is that they will be refused on the grounds of inconsistency with these provisions.
- The Objectives and Policies contained in Section 14A are general and introduce the six residential zones that exist in the City Plan, providing a brief rationale for each and their associated densities. The general direction of these provisions cannot be used to by-pass or override the specific direction provided in Section 14B.
Medium Density Residential
- For those proposals that include a development density exceeding one dwelling per 325m2 of net site area and no greater than one dwelling per 200m2 of site area, these will be treated as ‘medium density’ residential development as defined by the City Plan.
- Outside of the various intensification overlays (such as the Medium Rise Plan Areas) Medium Density residential development is supported and provided for by the Operative City Plan Zone Purpose Statement; Objectives; and Policies for the Suburban Residential Zone as ‘Comprehensively Designed Development’.
- Objective 14B.1.3 and supporting Policy 14B.1.3.2 – Density of Development – Medium Density Development in the Suburban Residential Zone provide some fundamental direction on such development, including locational considerations and interface with adjacent low-density development.
- Comprehensively Designed Development (Suburban Residential Zone Outside of Urban Growth Areas), whilst being an activity defined in Chapter 3 of the City Plan, is not specifically assigned an activity status in the Suburban Residential Zone and defaults to a Discretionary Activity status.
The Resource Management Amendment Act and Medium Density Residential Standards
The RMA (as modified by the Amendment Act) under section 77G directs TCC (as a Tier 1) to undertake a plan change (referred to as an Intensification Planning Instrument) to incorporate the Medium Density Residential Standards (contained in Schedule 3A of the RMA) into the City Plan. Section 80F requires this plan change on or before 20 August 2022.
Some key points to note about the MDRS:
- Section 77M(9) is explicit that the MDRS are irrelevant to the consideration of applications until such time as the Intensification Planning Instrument has been notified.
- Section 86BA(1) prescribed that, once notified, rules within the Intensification Planning Instrument will have immediate legal effect.
- Section 86BA(2) prescribes that, once notified, a rule in the operative plan that is inconsistent and more restrictive than its equivalent MDRD in an Intensification Planning Instrument ceases to have legal effect.
In summary, the MDRS are irrelevant and will not feature in our decision making until such time as an Intensification Planning Instrument using the Intensification Streamlined Planning Process has been notified.
Given the nature of the MDRS (which include some preclusions on notification) and the direction on legal effect in section 86BA, it is expected that the planning environment will become far less complex, more certain and enabled following the notification of the Intensification Planning Instrument and inclusion of the MDRS in the City Plan.