New Zealand Legislation: Bills

28 Binding commitments may be required

• (1) This section applies when—

  • (a) a person—

    • (i) applies for a building consent for a development in a territorial authority’s district:; or

    • (ii) has been granted a resource consent for a development in a territorial authority’s district:; or

    • (iii) both applies for a building consent and has been granted a resource consent for a development in a territorial authority’s district; and

  • (b) the person is required by the territorial authority to do an action under its affordable housing policy.

  (2) The territorial authority may require the person to make a binding commitment to it that the person will take all practicable steps to ensure that the action is done.

  (3) The territorial authority may require only 1 binding commitment from a person who needs more than 1 consent for a development.

  (4) If the territorial authority requires the person to make a binding commitment to it, the territorial authority must be satisfied that the person is able to keep the binding commitment.

  (5) If the territorial authority requires the person to satisfy it of the person’s ability to keep the binding commitment, the means by which the authority requires the person to satisfy it must be reasonable.

  (6) The territorial authority must notify the building consent authority to which the person applied for a building consent and the consent authority that granted the resource consent of 1 of the following:

  • (a) that the person is not required to make a binding commitment to the territorial authority:; or

  • (b) that—

    • (i) the person was required to make a binding commitment to the territorial authority; and

    • (ii) the person has done so; and

    • (iii) the territorial authority is satisfied that the person is able to keep the commitment.

  (7) The territorial authority must not notify the building consent authority or the consent authority of subsection (6)(b)(ii) and (iii) until—

  • (a) the person has made the binding commitment; and

  • (b) the territorial authority is satisfied that the person is able to keep the commitment.

  (8) The building consent authority must not grant the consent, and the consent authority must prevent the commencement of the consent under the Resource Management Act 1991, until it receives notification from the territorial authority under subsection (6).

  (9) Without limiting the form a binding commitment under this section may take, a binding commitment may take the form of a contract or deed, which could be supported by, for example, a bond, guarantee, indemnity, mortgage, or security interest under the Personal Property Securities Act 1999.