New Zealand Acts

URBAN DEVELOPMENT ACT 2020 - SECT 186

186 Order in Council may authorise Kāinga Ora to set rates

1 The Governor-General may, by Order in Council made on the recommendation of the responsible Minister, authorise Kāinga Ora to set targeted rates for a project area.

2 The Minister must not recommend the making of an order unless satisfied that—

a) the specified development project has a development plan that provides for Kāinga Ora to set targeted rates; and

b) the matters specified in the order in accordance with section 187 are not materially different from those in the development plan; and

c) the order authorises targeted rates to fund activities or groups of activities only to the extent that they are not already funded by local government rates or another levy.

Example: ExamplesExample 1A local authority has set a targeted rate to fund roading in a part of its district that is outside a project area.The order may authorise Kāinga Ora to set a targeted rate to fund roading within the project area. That rate may apply to rating units within the project area regardless of whether they are also subject to the local authority’s targeted rate.Example 2A portion of the general rate set by a local authority is used to fund a wastewater system that serves the authority’s entire district.A specified development project will upgrade the part of the system that serves the project area.The order may authorise Kāinga Ora to set a targeted rate that is sufficient only to fund the upgrade. The general rate continues to fund the general maintenance and operation of the wastewater system in the project area.

3 Despite subsection (2)(b), the Minister may recommend that a targeted rates order—

a) specify a rate that is not provided for in the development plan if that is permitted by section 188 :

b) specify matters that are different from those in the development plan if that is needed to comply with subsection (2)(c) (for example, by specifying a lower maximum amount of revenue that may be recovered from a rate).

4 In this section,
"levy" —

a) means a requirement imposed by or under an enactment on 1 or more persons, or classes of person, to pay money for the purpose of funding matters that are specified in or under an enactment; and

b) does not include a requirement to pay a fee to fund the cost of providing a good or service to the person paying the fee.

5 An order under this section is secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).

History: Section 186(5): inserted, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).