12 December 2022
Media: Rotorua Daily Post
Topic: Houses used as commercial premises
Enquiry
Reporter following up on information provided by council about residential addresses rates as commercial ie houses which are operated as commercial premises, which currently total 171.
Reporter had the following questions:
Firstly, is the council able to say which businesses are operating from these addresses or which types? Ie accountants, vets etc.
What impact does the council think this is having on housing availability in the city?
What other aspects impact housing availability? For example in [a previous, 2019, Daily Post article about this same topic] it said the problem was minor "in comparison to issues like a rising population and new builds not matching demand".
In what ways is the council currently addressing housing demand or incentivise businesses into commercial addresses? eg [Housing] accord
What is the process for setting up a business in a residential property?
Response
The following was provided, attributed to DCE District Development Jean-Paul Gaston:
Firstly, is the council able to say which businesses are operating from these addresses or which types? Ie accountants, vets etc.
We do not have this information sorry.
What impact does the council think this is having on housing availability in the city?
Any use of houses for purposes other than people living in them impacts housing availability but the number being used for commercial purposes is small compared to other factors.
What other aspects impact housing availability? For example in Steph's story it said the problem was minor "in comparison to issues like a rising population and new builds not matching demand".
Housing construction in Rotorua hasn’t matched population growth that we have experienced since 2013/14 and being a popular holiday destination, we have always had a significant number of properties that are short-term holiday rentals.
Current national and international factors impacting the rate of construction include supply issues, cost escalations, interest rate changes and banks tightening borrowing parameters.
It has been great, despite the challenging environment, to see progress on some residential developments that will contribute towards addressing our acute housing shortage but we know that much more is needed and we continue to work on multiple fronts to open up land and encourage development.
In what ways is the council currently addressing housing demand or incentivise businesses into commercial addresses? eg [Housing] accord
- A District Plan change was approved by the Minister for the Environment for a streamlined plan change process to fast-track rezoning of privately-owned land along Pukehangi Road. The area is now zoned for residential housing and Council continues to work with the landowners to support the progression of their housing developments, which would enable an estimated 790 dwellings.
- Council has worked alongside various partners to attract Government funding to enable housing development in Rotorua. [Zizi this is the likes of CIP and IAF funding that council has received and which you guys have reported on]
- Inclusion of Rotorua in the Medium Density Residential Standards: The inclusion in the MDRS, which took effect in August, followed a decision of elected members to seek the inclusion of Rotorua in the legislation. Other parties independently also sought the inclusion of Rotorua in the MDRS – Rotorua Chamber of Commerce, Te Tatau o Te Arawa, Te Arawa Lakes Trust. The MDRS is considered another way to encourage greater residential development and provide more housing choice in our district which is experiencing an acute housing shortage.
- Council is currently consulting on a Housing Plan Change (plan change 9) that proposes additional new heights and density rules for the district and also includes proposed rule changes for papakāinga to make this type of development easier. As with inclusion in the MDRS, these proposed changes are aimed at increasing housing supply and choice.
- Alongside plan change 9 Council is starting work on a Future Development Strategy (FDS) that will take a long-term view of how and where development happens in Rotorua and what is needed to support that such as infrastructure and community assets to ensure the right kind of development occurs in the right places. The FDS will help set the high level vision for accommodating urban growth over the long term and will identify strategic priorities to inform development-related decisions.
- Council and RotoruaNZ are working together on key pieces of work to revitalise the inner city including enabling more residential living within the CBD. This includes working with mana whenua and Te Arawa on cultural foundations, development of an inner city design guide, working on an incentives policy to encourage residential and commercial development, and opportunities to support potential landowners and developers to undertake projects that support inner city living.
- While the Government is leading changes to national policy to enable faster residential development, Council is always looking at ways to improve and streamline consenting processes across the board and in connection with the proposed intensification plan change and within statutory requirements, for development of medium to high density residential builds such as duplexes and terraced homes.
- Our planning team is working with a number of key developers and iwi groups planning further residential development, looking at commercial development opportunities in Rotorua and/or looking to open up land for residential or commercial development. We currently have a shortage of both homes and commercial land in Rotorua.
- Council continues to work with Government, its agencies and iwi to address the shortage of housing in Rotorua including a shortage of emergency, transitional and social housing. The Rotorua Housing Accord will build on progress already made and will increase housing supply by:
- Building a pipeline of public and affordable housing, including planning and infrastructure requirements, that will meet current and future housing demand;
- Growing the overall housing supply;
- The Crown and Council actively supporting those Te Arawa iwi, hapu and land trusts and incorporations that wish to contribute housing supply in Rotorua;
- Ensuring new infrastructure and housing supply is responsive to demand and provides for the long term social, cultural, environmental and economic wellbeing of Rotorua and its people.
What is the process for setting up a business in a residential property?
Contact the council to check whether this is permissible and whether a resource consent is required.