Granny flats: What's changed

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Have your say on the proposed Development Contributions Policy for Granny Flats.

What is this about?

Council charges financial contributions for land use and building development. This money helps pay for infrastructure needed as our district grows, such as roads, water services and reserves.

Changes to legislation mean we can no longer charge these contributions for granny flats (small stand-alone dwellings) that do not need resource consent without amending the District Plan.

Introducing a development contributions policy for granny flats would allow us to keep recovering growth-related costs from granny flats that now don’t require a resource consent and may or may not require a building consent.


Why can’t we continue with our current approach?

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 or building consent stage rather than as a condition of a resource consent.

Without this policy, we risk a growth 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.


Why does this matter?

New homes can increase demand on local infrastructure, including roads, water supply and wastewater networks. Both financial contributions and development contributions help fund the infrastructure needed to support growth.

Without a way to recover these growth-related costs from development, there is a risk that a funding shortfall could occur. This could mean existing ratepayers ultimately carry more of the cost of providing infrastructure needed to support development.

The purpose is not to create a new cost for homeowners. It is to provide a new mechanism for Council to continue recovering growth-related costs that have previously been recovered through financial contributions.


What stays the same?

  • Recovery of growth-related costs from granny flats.
  • Granny flats that require resource consent will continue to be assessed under the operative District Plan and financial contributions approach.
  • Council will continue to use the Household Equivalent (HHE) to assess the development contribution for a granny flat. This is a standard measure councils use to estimate how much demand a new development places on public infrastructure.
  • Each granny flat will be assessed as 0.5 HHE per flat. This matches the financial contributions for similar minor residential dwellings that require a resource consent.
  • Financial contribution models that determine the cost of growth-related infrastructure attributable to a HHE will continue to be used as the basis for the development contribution charges.


What will change?

  • Granny flats that don’t require a resource consent will be considered under the proposed policy.
  • When Council issues a Project Information Memorandum or building consent for a granny flat, it may also issue a notice telling the owner how much development contribution is payable.
  • Council cannot charge ecological development contributions under the proposed policy. However, it will continue to charge ecological financial contributions for granny flats that need resource consent.
  • There is no ability to apply for a remission to the development contribution. Note under financial contributions, waivers can only be provided for on a category basis through a plan change or annual plan process rather than for individuals by specific application.


We want to hear what you think

Before any decision is made, we want to hear your views on the proposed policy. You can:

  • complete the online feedback form below
  • visit one of our Library and Service Centers
  • email yourplace@westernbay.govt.nz with “Draft Policy – Granny Flats” in the subject line.

Please note that petitions will not be accepted as formal feedback. Council’s feedback process is designed to capture feedback directly from individuals and organisations so that all views can be considered.

What happens next?

Once consultation closes, we’ll review and consider all feedback received.

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


Consultation closes 11:59pm, Friday 20 November 2026.









Have your say on the proposed Development Contributions Policy for Granny Flats.

What is this about?

Council charges financial contributions for land use and building development. This money helps pay for infrastructure needed as our district grows, such as roads, water services and reserves.

Changes to legislation mean we can no longer charge these contributions for granny flats (small stand-alone dwellings) that do not need resource consent without amending the District Plan.

Introducing a development contributions policy for granny flats would allow us to keep recovering growth-related costs from granny flats that now don’t require a resource consent and may or may not require a building consent.


Why can’t we continue with our current approach?

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 or building consent stage rather than as a condition of a resource consent.

Without this policy, we risk a growth 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.


Why does this matter?

New homes can increase demand on local infrastructure, including roads, water supply and wastewater networks. Both financial contributions and development contributions help fund the infrastructure needed to support growth.

Without a way to recover these growth-related costs from development, there is a risk that a funding shortfall could occur. This could mean existing ratepayers ultimately carry more of the cost of providing infrastructure needed to support development.

The purpose is not to create a new cost for homeowners. It is to provide a new mechanism for Council to continue recovering growth-related costs that have previously been recovered through financial contributions.


What stays the same?

  • Recovery of growth-related costs from granny flats.
  • Granny flats that require resource consent will continue to be assessed under the operative District Plan and financial contributions approach.
  • Council will continue to use the Household Equivalent (HHE) to assess the development contribution for a granny flat. This is a standard measure councils use to estimate how much demand a new development places on public infrastructure.
  • Each granny flat will be assessed as 0.5 HHE per flat. This matches the financial contributions for similar minor residential dwellings that require a resource consent.
  • Financial contribution models that determine the cost of growth-related infrastructure attributable to a HHE will continue to be used as the basis for the development contribution charges.


What will change?

  • Granny flats that don’t require a resource consent will be considered under the proposed policy.
  • When Council issues a Project Information Memorandum or building consent for a granny flat, it may also issue a notice telling the owner how much development contribution is payable.
  • Council cannot charge ecological development contributions under the proposed policy. However, it will continue to charge ecological financial contributions for granny flats that need resource consent.
  • There is no ability to apply for a remission to the development contribution. Note under financial contributions, waivers can only be provided for on a category basis through a plan change or annual plan process rather than for individuals by specific application.


We want to hear what you think

Before any decision is made, we want to hear your views on the proposed policy. You can:

  • complete the online feedback form below
  • visit one of our Library and Service Centers
  • email yourplace@westernbay.govt.nz with “Draft Policy – Granny Flats” in the subject line.

Please note that petitions will not be accepted as formal feedback. Council’s feedback process is designed to capture feedback directly from individuals and organisations so that all views can be considered.

What happens next?

Once consultation closes, we’ll review and consider all feedback received.

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


Consultation closes 11:59pm, Friday 20 November 2026.









  • Feedback sought on granny flat contributions

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    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.

    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.

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