FAQs

A granny flat (small stand-alone dwelling) is a self-contained home that is typically located on the same property as an existing home. 

Granny flats can provide flexible housing options for families, older people, extended family members or renters.

Legislative changes in January 2026, created a pathway for qualifying granny flats to proceed without resource consent and, in specified circumstances, without building consent. These can now generally be built as a permitted activity and without building consent where they meet the relevant requirements including being no more than 70m².

Under the proposed policy the term “granny flats” refers to buildings that do not require a resource consent, and which may or may not need a building consent under the Building Act 2004.

The Government has made changes to planning and building legislation that make it easier to establish granny flats.  

This has been achieved through the National Environmental Standards for Detached Minor Residential Units 2025 (NES-DMRU) and amendments to the Building Act 2004.

The changes took effect in January 2026 and are intended to:

• make it easier to build granny flats
• increase housing supply
• provide more flexible living options
• reduce some of the time and costs associated with granny flats

In January 2026, changes to legislation removed Council’s ability to collect financial contributions for some granny flats through the resource consent process.

Development contributions are now the only way we can do this without amending the District Plan.   Amending the District Plan is not a practicable option given the government’s “plan stop” which restricts Council’s ability to undertake plan changes pending implementation of the new Planning Act. 

Council does not currently use development contributions, so we can’t recover growth-related costs from granny flats that no longer need resource consent. The proposed policy would allow us to keep recovering against these costs. It is made under the Local Government Act 2002, and the charge would be issued at the Project Information Memorandum (PIM) or building consent stage rather than as a condition of a resource consent.

While the recent changes to the Building Act allow some granny flats to be developed without a building consent, some will still require building consent.  Therefore, this policy deals with both situations given that financial contributions cannot be charged in either case.  

Without this policy, we will have a funding gap. Granny flats add to demand for infrastructure as the district grows. We do not think it is fair for other parts of the community to cover these costs

No.  Council has charged financial contributions for granny flats for some time. We do this through our District Plan under the Resource Management Act 199

No. The proposed policy is not about increasing the charge.

Council’s standard practice for reviewing contribution charges would continue to apply.

The amount of a contribution can change over time as Council reviews the costs of growth-related infrastructure against the demand we expect to see in the district.

Development contributions are payments made to Council to help fund the infrastructure needed to support growth.  This can include infrastructure such as:

• roads and transport networks
• water supply
• wastewater systems
• stormwater infrastructure
• other infrastructure, where applicable.

The purpose is to help ensure infrastructure keeps pace with new development and that the costs of growth are appropriately shared.

Development can increase demand on local infrastructure.  For example, adding a granny flat to a property can result in:

• more demand for water services
• additional traffic and demand on local roads
• increased demand for parks and reserves.

Development contributions (and financial contributions) provide a way for new development to contribute an appropriate share towards the infrastructure needed to support that growth.

The amount of any development contribution depends on the level of infrastructure demand associated with the development and the location of the development.

The contribution can also vary depending on the infrastructure services available in an area. For example, not all areas have Council-provided wastewater, stormwater or water services.

Development contribution amounts are shown in the proposed policy (as applicable to the 2026- 2027 financial year) and are calculated exclusive of GST.  

Council's development contribution charges are reviewed as part of its standard process, so contribution amounts can change over time.

The proposed policy is not intended to increase the contribution amount.

The key change is how and when the contribution is collected, rather than introducing a new charge.

Western Bay of Plenty District Council is one of the few councils in New Zealand that does not currently have a development contributions policy.

Many councils already use development contributions to help fund infrastructure associated with new development.

The proposed policy would establish a framework for Council to recover an appropriate share of infrastructure costs associated with eligible granny flats.

The Development Contributions Policy will take effect as soon as the final policy is approved by Council (depending on the outcome of this consultation process) and will apply to all applicable granny flats in respect of which an application for a PIM or a building consent has been lodged after the commencement date.    

Once consultation closes, Council staff will review and analyse all feedback received.

The feedback will help inform any changes to the proposed policy before it is presented to elected members for a final decision.