Feedback sought on granny flat contributions

Western Bay is growing and changing, and granny flats are one way our communities can provide affordable housing.

Now, Western Bay residents are being asked for their views on a proposed new policy to make sure granny flats continue to contribute fairly towards the infrastructure needed to support that growth.

Changes to national planning and building legislation came into effect in January 2026 and have made it easier to build qualifying granny flats of up to 70 square metres, with some no longer requiring resource consent or building consent.

For granny flats that no longer require resource consent, the changes also mean Western Bay of Plenty District Council can no longer collect infrastructure costs. Council currently collects these costs through financial contributions as part of the resource consent process.

Council is proposing a new Development Contributions Policy specifically for these granny flats, providing another way for them to contribute towards growth-related infrastructure.

Alison Curtis, Council’s General Manager Regulatory Services, says the proposed policy is about keeping the way growth costs are shared as fair and consistent as possible.

“Granny flats can be a great housing option, making it easier for people to provide a home for whānau or renters, and the government’s changes have reduced ’red tape’ and made them simpler to build,” she says.

“But adding extra homes to properties places additional demand on things like our roads, water services, wastewater networks and reserves. Those infrastructure costs don’t disappear because the consenting requirements have changed.

“This proposal isn’t about creating an additional cost for people building granny flats. It’s about having a mechanism that allows us to continue recovering an appropriate share of growth-related infrastructure costs, rather than those costs falling more heavily on existing ratepayers.”

Western Bay is one of only a few councils in New Zealand that does not currently use development contributions. Instead, Council has traditionally recovered growth-related costs through financial contributions collected through the resource consent process.

The proposed policy would introduce development contributions specifically for granny flats that do not require resource consent. Granny flats that still require resource consent would continue to be assessed for financial contributions under the existing District Plan provisions.

Each granny flat would be assessed as 0.5 Household Equivalent (HHE), and pay half the standard dwelling contributions, consistent with Council’s current approach for similar minor residential dwellings requiring resource consent.

The amount payable varies depending on where the property is located and the infrastructure services available in that area.

When a property owner applies for a Project Information Memorandum (PIM), or building consent, a notice setting out the development contribution fee payable will apply.

Alison says Council wants to hear from the community before making a final decision.

“We think it’s important that development continues to contribute fairly towards the infrastructure needed to support it, but we want to hear what our community thinks about the proposed approach before a final decision is made.”

Feedback is open until 11.59pm, Friday 20 November 2026.